16 manufacturers lost N792bn in one year – MAN

Agency Report

The Manufacturers Association of Nigeria (MAN) said that 16 major manufacturing firms incurred cumulative losses amounting to N792 billion between 2023 and 2024.

Chairman, Ogun State Manufacturers Association of Nigeria, MAN, Mr. George Onafowokan, according to Economic Confidential also raised the alarm over unprecedented crisis facing the manufacturing sector following the government’s decision to float naira in 2023.

He made this known at the 39th Annual General Meeting of the states chapter of MAN.

Onafowokan who doubles as Managing Director of Coleman Wires and Cables Industries Limited said: “The fall of the national currency has been partially responsible for high inflation rates in the country. As of December 2023, inflation rose to 28.92 percent according to the National Bureau of Statistics. The Federal Government had also through the Nigerian National Petroleum Company Limited got a $2.25 billion oil-for-cash loan facility from the African Export-Import Bank to boost dollar liquidity in the economy.

“The manufacturing sector incurred significant forex losses in 2023, which extended into 2024, forcing many manufacturers to either temporarily suspend or completely halt their operations.

“In fact, approximately 16 major manufacturing companies lost a combined total of N792 billion due to the depreciation of the Naira resulting from monetary policy reforms. The impact on SMEs and smaller manufacturers has been equally devastating.”