How government can grow manufacturing sectors in 2026 – MAN

By Gboyega Oni

The Manufacturers Association of Nigeria (MAN) has recommended some actionable steps which the Federal Government of Nigeria could take in 2026 to revamping all the manufacturing sectors in the overall growth of the national economy.

In its Manufacturing State of Affairs, MAN listed these recommendations while stating that inadequate power supply, heavy import duty, high cost/shortage of raw materials, exchange rate inflation and government’s over-regulation/policy inconsistency among other challenges harmed the capacity of manufacturers in 2025.

Other challenges were multiple taxation, high interest rate & low access to credit, poor road infrastructure, low patronage by government agencies, and high cost of logistics.

The recommendations by MAN for the Federal Government to boost manufacturing are:

Create a dedicated manufacturing FX window to ensure access to forex for raw materials and machinery.

Develop KPIs, establish feedback mechanisms and conduct periodic audits to ensure the successful completion the National Single Window Project in compliance with global cost-effective standards.

Create a National Manufacturing Regulatory Coordination Desk (NMRCD) under the Federal Ministry of Industry, Trade and Investment to harmonize approvals, inspections and compliance processes for manufacturers across key agencies.

Expand embedded generation and industrial cluster power projects using gas and renewable mini-grids, ensuring manufacturers get reliable, affordable off-grid electricity.

Approve the N1 trillion stabilization fund for manufacturers and direct the CBN to increase the capital base of the Bank of Industry to meet the credit demand of industries.

Direct NEPC to release the existing backlog of Export Expansion Grants and reduce bureaucratic procedures for issuing Export Credit Certificate (ECC).

Introduce import duty exemptions for non-locally available raw materials, spare parts and machinery that are essential for manufacturing.

Others are: Further reduce the benchmark interest rate by at least 200-300 basis points over the next two quarters to make credit affordable for manufacturers.

Launch a Manufacturing Refinancing and Rediscounting Facility (MRRF) that allows banks to refinance approved manufacturing loans at single-digit rates for up to 7 years.

Create a publicly accessible dashboard tracking lending flows, interest rate spreads, loan approvals and sectoral disbursement patterns in real time.

Categorize manufacturers as strategic users of gas to remove the gap between what manufacturers and electricity generation companies pay per cubic foot of gas.

Introduce a stable, transparent gas pricing framework for manufacturers and prioritize local gas supply before exports.

Offer tax credits and recognition awards to companies and consumers patronizing locally manufactured goods.

Establish a Tax Policy Implementation and Evaluation Unit under the Federal Ministry of Finance to regularly STI assess how the new tax regime affects investment, manufacturing costs and MSME performance.

Craft and ensure the effective execution of the implementation strategy for the recently approved of Nigeria Industrial Policy.

For its outlook for the year 2026, the MAN projected the Naira to appreciate further to N1,300 -N1,400/$, driven by global oil price recovery, stronger external reserves, robust export earnings, increased foreign investments and remittance inflows.

Headline Inflation will decelerate further to 14%, supported by easing food prices, stable energy prices, and appreciation of the Naira.

The CBN is anticipated to implement further cuts in the benchmark interest rate to about Monetary Policy Rate 23%, in line with the disinflationary trend and to stimulate credit expansion and output

Further reduction in lending rates and completion of the bank recapitalization exercise will enhance credit availability to manufacturers, strengthening investment and capacity utilization. Real growth is projected to reach 3.1% while contribution to real GDP is expected to rise to 10.2%. These gains, however, hinge on the effective execution of incentives under the new tax laws, the operationalization of the National Single Window Project and the purposeful implementation of the Nigeria Industrial Policy in close alignment with the “Nigeria First” Policy framework.

Overall GDP growth is expected to reach 4% in 2026 due to higher oil output, further Aggregate GDP Growth improvement in fiscal space, expansion in financial and manufacturing sectors, and
Concluding, MAN expects:
The modest yet consecutive rise in the MCCI since Q2 2025 reaffirms that Nigeria’s economy is on a path of gradual recovery. The stabilization path has been cleared; what lies ahead is the imperative of accelerated growth. To sustain this trajectory, exchange rate stability must be guarded with every available policy tool. Currency stability is more than a macroeconomic metric, it is a reflection of national resolve.

One of the biggest threats to the hard-won stabilization is a decline in oil production, as witnessed in August and September. While global oil prices remain entirely outside Nigeria’s control, the country retains considerable influence over its production levels; a domestic variable that must be managed with urgency and precision. The Government must therefore take decisive measures to reach the OPEC quota by tightening pipeline security and upgrading operational infrastructure. Also, sustain the increase in refining capacity by forestalling any further industrial disputes in the mainstay of the economy.

The Central Bank of Nigeria’s recent benchmark interest rate cut is commendable and signals a welcome policy shift. However, the time has come for the apex bank to take a bolder step by introducing a deeper rate cut that can meaningfully lower the cost of credit and stimulate real sector investment. Growth cannot thrive where capital remains prohibitively expensive.

On the fiscal front, the development and implementation of the Nigeria Industrial Policy is long overdue. It must be aligned with the “Nigeria First” Policy and highly private sector -driven, ensuring coherence between policy intent and industrial realities. As the nation prepares for the implementation of new tax laws in January 2026, shared ownership and strict adherence to execution plans will be critical. Progressive tax reforms can only deliver their promise of higher revenue, improved living standards and a more enabling business environment when enforcement is disciplined and predictable.

Ultimately, manufacturing remains the heartbeat of sustainable recovery and the catalyst for inclusive growth. No economy has ever prospered on consumption alone. Nations rise by producing what they consume and exporting what they produce. To secure the gains of stabilization and accelerate prosperity, Nigeria must make manufacturing the nucleus of its growth strategy.