Economy
Nigerian Manufacturers Lament Worsening Condition of Manufacturing Sector
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has decried the worsening condition of manufacturing in Nigeria’s economy as the sector delivered a 1.38 per cent growth in 2024.
The group has, therefore, called on stakeholders to reevaluate their service delivery systems by adopting a forward-looking strategies to aligned with the nation’s evolving industrial sector.
The Director-General of MAN, Mr Segun Ajayi-Kadir, speaking during a business luncheon on Thursday in Lagos, submitted that the move would would help to address economic pressures.
The business luncheon, organised by the Apapa Branch of the MAN, is its 14th edition, and was themed Delivering Quintessential Membership Service in an Era of Economic Downturn.
Mr Ajayi-Kadir said the event was both a call to everyone desiring a more supportive environment and a strategic direction that all members were required to align with, noting that quintessential service entailed delivering service at the highest standard, marked by professionalism, excellence, empathy and responsiveness.
According to him, in spite of the current macroeconomic realities plaguing global business operations, manufacturers must aim to exceed expectations.
“An internal survey by MAN reports that unsold inventory rose sharply from N1.1 trillion in 2023 to N2.1 trillion in 2024.
“You can imagine a subsector or a sector, depending on how you look at it, having two trillion worth of unsold inventory.
“Additionally, challenges related to transport and logistics, infrastructure, particularly around major ports and industrial corridors, make the operating environment unconducive for manufacturing.
“The impact of these challenges is evident in the sector’s capacity utilisation and its contribution to GDP , which have hovered around 5.5 per cent and 10 per cent respectively, over the past 12 months,” he said.
Mr Ajayi-Kadir expressed concern that in spite of Nigeria’s abundant resources and industrial potential, the manufacturing sector’s growth was as low as 1.40 per cent in 2023.
He said that the growth declined further to 1.38 per cent in 2024, outlining new initiatives, including the environment and green manufacturing unit, international cooperation and advocacy division and membership satisfaction monitoring unit, as strategic responses to emerging industry needs.
The MAN chief reminded the stakeholders of the association’s “MAN of the Future” vision, which he said was a transformative agenda built on six core pillars, which he listed as relentless innovation, purposeful and deliberate engagement, transformational leadership, passion for growth, oneness and empathy, and breakthrough performance environment.
Mr Ajayi-Kadir said that the goal was to significantly boost the profitability of the members’investment, grow the economy, and improve the well-being of Nigerians.
“The MAN of the future is a transformative journey that requires a shift in mindset, operations, leadership, and accountability in our responsibilities,” he said.
On his part, the Chairman of MAN, Apapa Branch, Mr Raphael Danilola, expressed concern about the unpredictable rise in production costs, particularly for manufacturers operating under the Band-A electricity tariff.
Mr Danilola said that many businesses were struggling to pay the bills, decrying the growing trend among regulatory agencies, particularly in the state that prioritised revenue generation over their oversight functions.
According to the chairman, there are instances where manufacturers faced multiple levies, taxes and overlapping compliance demands from proliferation of Ministries, Departments and Agencies (MDAs).
“Manufacturers across all sectors have already borne the brunt of regulatory and economic pressures.
“At this point, there is fear of further decline. What is urgently required is a coordinated effort to reverse the trend,” he said.
Mr Danilola urged manufacturers to reassess their strategies, strengthen cooperation and become more deliberate in policy engagement, calling on them to collaborate in defending their businesses against policies suffocating the industry, adding that members must become more actively involved in defending the sector’s interests.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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