The Manufacturers Association of Nigeria has said that economic reforms introduced by the administration of President Bola Tinubu have significantly increased operating costs for manufacturers, pushing expenditure on alternative energy to N1.34tn in 2025 and worsening industrial performance.
The association acknowledged that the reforms have laid the foundation for long-term economic restructuring and urged the Federal Government to shift its focus towards industrial recovery and growth.
In a document assessing the impact of recent economic reforms on industrial performance obtained by The PUNCH, MAN said manufacturers had borne a disproportionate share of the adjustment burden arising from the implementation of key policies, including fuel subsidy removal, exchange rate liberalisation, electricity tariff adjustments and tight monetary policy.
Director-General of MAN, Segun Ajayi-Kadir, explained that the reforms significantly altered the operating environment for manufacturers and triggered unprecedented increases in production costs.
According to the association, the removal of fuel subsidy in May 2023 caused logistics and distribution costs to rise by more than 300 per cent within weeks, while the increase in electricity tariffs for Band A consumers further compounded production challenges.
