Manufacturers in Ogun State are protesting the unconstitutional demands from local government authorities and the exorbitant fines imposed by regulatory agencies. George Onafowokan, the chairman of the Ogun State branch of the Manufacturers Association of Nigeria (MAN), has warned that these demands are stifling businesses and undermining the manufacturing sector’s contribution to Nigeria’s economic growth.
Onafowokan made these remarks during the Private Session of the 40th Annual General Meeting (AGM) of the Ogun MAN branch, where he highlighted the challenges manufacturers face in Nigeria’s turbulent economic climate. He noted that members in the state are also dealing with allegations of infractions from regulatory agencies, significant fines, threats of sealing up operations, and unusual summonses from the national assembly and the police.
The chairman expressed concern over the rising cost of accessing finance from money deposit banks, citing the country’s high MPR rate at 27.5 percent. He urged manufacturers to explore alternative funding sources, mentioning institutions like the Bank of Industry (BOI), LECON Finance Company, and Agusto & Co. as potential providers of guidance.
Onafowokan also highlighted the industry’s struggles with foreign exchange volatility, inflation, and regulatory burdens. He noted that the naira had devalued from N447/$ in December 2022 to N1,605/$ by mid-2024, significantly increasing production costs while consumer purchasing power diminished.
Despite these challenges, Ogun manufacturers continue to operate and invest in the economy. In response, the Federal Government launched the N75 billion Manufacturing Sector Fund and another N75 billion MSME Intervention Fund, both disbursed through the BOI at a 9 percent interest rate and a 1–5-year repayment period.
Adebola Sofela, Ogun State commissioner for Industry, Trade, and Investment, commended manufacturers for their resilience and assured them of the state government’s commitment to improving the business environment through tax harmonisation and infrastructure development.
Francis Meshioye, MAN’s national president, urged both state and federal governments to adopt policies that promote local manufacturing. He emphasised the need to implement the “Nigeria First” policy, mandating all government MDAs, contractors, and agencies to patronise made-in-Nigeria products.
Meshioye also appealed to the Central Bank of Nigeria (CBN) to settle the $2.4 billion in unpaid forex forwards owed to manufacturers and called for the revival of quarterly interactive meetings between manufacturers and government agencies, the rehabilitation of inner roads in industrial areas, and an end to multiple taxations and regulatory overreach.
Oritsejimi Ogbobine, associate director at Agusto Consulting, urged manufacturers to embrace alternative financing models, including equity markets, bonds, green financing, and support from development finance institutions like AfDB, AfriExim Bank, and BOI. He emphasised the importance of creditworthiness and advised manufacturers to obtain credit ratings to boost their financial profile and attract funding.
During the AGM, George Onafowokan was re-elected as chairman of the Ogun MAN branch for a third consecutive term, along with other members of the executive. Motunrayo Elegberun was also returned as executive secretary. Their re-election was seen as a vote of confidence in their leadership during a challenging period for the sector.
