Reflecting Nigeria’s ongoing economic hurdles, George Onafowokan, chairman of the Ogun State chapter of the Manufacturers Association of Nigeria (MAN), revealed that 16 major manufacturing companies have collectively incurred losses of N792 billion due to the naira’s sharp depreciation. Onafowokan attributed this loss primarily to the government’s decision to float the naira in 2023, a policy that, he said, has worsened the availability of foreign exchange for businesses.

Speaking at the 39th Annual General Meeting of MAN’s Ogun State branch, themed “Dollar to Naira Cost, the Nigerian Manufacturers’ Daily Dilemma: Exploring Strategies for Business Sustainability,” he emphasized the hardships caused by exchange rate surges, which reached N1,800 to $1 by early 2024. “The naira float policy has driven a severe shortage of forex, leaving manufacturers unable to secure dollars at affordable rates for essential imports,” Onafowokan noted.

Due to limited foreign exchange at official rates, manufacturers increasingly rely on the parallel market, where exchange rates have escalated to N1,700 per dollar, resulting in soaring production costs. This forex crisis has profoundly impacted manufacturing, causing 16 leading firms to experience massive losses, while many small and medium enterprises (SMEs) are similarly impacted, with some forced to cut back or halt operations altogether.

Onafowokan also pointed to infrastructure and energy issues exacerbating the manufacturing sector’s troubles, particularly the poor condition of essential roadways in Ogun State, which disrupts logistics, leads to frequent accidents, and increases costs. While acknowledging the state government’s ongoing infrastructure efforts, he urged for quicker completion of projects to alleviate these burdens.

He also advocated for simplified tax policies and encouraged a “Buy Made-in-Nigeria” movement to increase local demand and support domestic manufacturers. Onafowokan’s remarks underscore the need for policy solutions to address foreign exchange scarcity, infrastructure deficiencies, and rising operational expenses, which collectively threaten the viability of Nigeria’s manufacturing industry.