Wisdom Engraced
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The Manufacturers Association of Nigeria (MAN) has expressed disappointment over the 65.84% increase in the value of manufactured goods exported in 2024, stating that it is below expectations.
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According to data from the National Bureau of Statistics (NBS), the gross value of manufactured goods exported in 2024 was N2.28tn, an increase from N778.44bn in 2023.
However, the export value of manufactured goods dropped by 52.48% in the fourth quarter of 2024, with the NBS reporting a value of N494.22bn.
Dr Benedict Obhiosa, Secretary of the Manufacturers Association of Nigeria Export Promotion Group (MANEG), attributed the decline in export performance to a hostile operating environment.
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“The operating environment has been very hostile for the manufacturing sector over the past two years, especially in terms of infrastructure,” Obhiosa stated. “The high cost of energy, high cost of borrowing, erratic fluctuations in the exchange rate, among others, have culminated in the low performance of the manufacturing sector.”
MAN’s Director-General, Segun Ajayi-Kadir, also noted that production and distribution costs surged further by 18.2% in the fourth quarter of 2024.
Obhiosa disagreed that the improvement in export value from 2023 was enough to celebrate, arguing that manufacturing companies were still performing “far below their installed capacity.”
He emphasised the need for the government to increase its commitment to issuing manufacturers export grants, stating, “To maximise the potential of the manufacturing export sector, the Federal Government needs to be more deliberate and action-minded about fully implementing the Export Expand Grant aimed at boosting the non-oil export sector in Nigeria.”
Obhiosa alleged that the Federal Government had not paid the EEG, leading to a backlog of payments. He explained, “If the Federal Government can be consistent with the payment of EEG, you can rest assured of higher foreign exchange earnings and inflow to Nigeria as export proceeds payments.”
According to the NBS, the value of manufactured goods traded in the fourth quarter of 2024 stood at N8.96tn, representing 24.50% of total trade. The main export commodities were unwrought aluminium alloys exported to Japan and China, dredgers exported to Ivory Coast, and cathodes exported to Japan and China
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