Suspension of Customs’ 4% FOB, other levies relieve manufacturers greater burdens – MAN President

Without the suspension of the 4% Free-On-Board (FOB) charge by the Nigeria Customs Service, the 15% increase in port charges by the Nigerian Ports Authority, and the discontinued levy by the Financial Reporting Council of Nigeria, manufacturers would have faced even greater burdens in 2025, said Otunba Francis Meshioye, President of Manufacturers Association of Nigeria (MAN)

Despite the headwinds in the economy in the year, Otunba Francis Meshioye disclosed that export value of the manufacturing sector rose to N978.53 billion in Q3 2025 from N803.8 billion in Q2 2025

The sector’s contribution to GDP averaged 8.36% in Q3 2025, compared with 8.24% in 2024. While the sectoral growth also remained in positive territory, with output expanding by 1.69%, 1.60%, and 1.25% in Q1, Q2, and Q3 2025 respectively.

At the 10th edition of the MAN Media Personality Award and 2026 Presidential Media Luncheon at the MAN House in Ikeja on Wednesday, January 28, 2026, the MAN President made this known, saying this reflects the underlying resilience of manufacturers and sustained advocacy – speaking with one voice, clear and coherent on policies affecting manufacturers.

Reflecting on the headwinds in 2025, Meshioye said the manufacturing sector grappled with familiar macroeconomic constraints, including persistent infrastructural deficits, multiple taxation, onerous regulatory requirements, weak policy coordination, elevated energy costs, and other deep-seated structural bottlenecks.

According to him, “Manufacturers entered the year with cautious optimism and a renewed commitment to proactive advocacy on issues affecting members’ operations and competitiveness. Nevertheless, prevailing macroeconomic pressures weighed heavily on business sentiment.

“Index, which tracks manufacturers’ expectations and operating impulse, declined to 53.2% in Q1 2025 from 56.0% in Q4 2024, before further easing to 50.3 % in Q2 and only marginally recovering to 50.7% in Q3. This subdued confidence trajectory reflected the unfriendly macroeconomic environment during the period. Interest rates remained elevated at 27.5% through much of the year, significantly increasing borrowing costs and constraining access to credit.

“The situation was further exacerbated by erratic public power supply, compelling manufacturers to rely heavily on alternative energy sources, with an estimated N676.6 billion expended on energy cost in the first half of 2025 alone.

“While the broader economy recorded disinflation in 2025, with headline inflation moderating from 27.61% in January to 15.15% in December, price levels remained elevated. The disinflation was supported in part by relative exchange-rate stability, as the Naira appreciated by 6.4% to close the year at N1,443 per US dollar in December from N1,541 per US dollar in January, marking the first annual appreciation in seven years.

“However, persistent double-digit inflation continued to erode consumers’ purchasing power, thereby dampening demand for manufactured goods.”

The MAN President, however, attributed the little contributions of the sector to the GDP in 2025 to advocacy which pulled back the ears of the government to their cries.

“In 2025, we sustained our advocacy with the support of your platforms. We spoke with one voice, clear and coherent on policies affecting manufacturers. We thank the government for its listening ear. Without the suspension of the 4% Free-On-Board (FOB) charge by the Nigeria Customs Service, the 15% increase in port charges by the Nigerian Ports Authority, and the discontinued levy by the Financial Reporting Council of Nigeria, manufacturers would have faced even greater burdens,” said Meshioye.

He averred that manufacturing thrives when government and industry players work in close collaboration, both in policy formulation and implementation. “We urge stakeholders in government not to treat this as an afterthought, but to ensure all relevant players are consulted before decisions are made and decisions made should reflect the imperatives for growth, innovation and competitiveness. Government agencies should be enablers of ease of doing business, not obstacles.

“MAN projects the sector to grow by 3.1% this year, contributing over 10% to GDP. To achieve this, our advocacy will focus squarely on the fundamentals that matter most to industry.”

He commended and described the media as a driving force in the attainment of our goals; amplifying our advocacy, interrogating our policies, challenging our assumptions, and giving visibility to the realities of Nigerian manufacturers.

According to him, the MAN Media Personality Award is a significant milestone in the calendar of MAN events and has continued to serve its noble purpose. It was conceived to strengthen collaboration between the media and the Association, while creating a platform to celebrate impactful journalism.

“Through your reportage, our positions on industrial policy, manufacturing competitiveness, energy security, local content development and the macroeconomics environment in general have remained firmly on the national agenda. When we speak of patronage of Made-in-Nigeria products, your pen has greatly contributed to transforming that slogan into a national imperative. When we advocate against stifling policies, it is your platforms that have accelerated the persuasion of government to listen. For this, we remain deeply grateful,” said Meshioye who congratulated the winners.