As Nigeria’s economic conditions continue to strain the manufacturing sector, the Ogun State branch of the Manufacturers Association of Nigeria (MAN) has called on manufacturers across the country to adopt alternative sources of funding to keep their operations afloat and ensure long-term growth.
This call was made during the 40th Annual General Meeting of the Ogun MAN branch, held in Abeokuta with the theme “Financing Manufacturing Concerns: Exploring Alternatives.” The event brought together manufacturers, financial experts, and government representatives to explore viable funding solutions for a sector grappling with inflation, forex volatility, and steep lending rates.
Ogun MAN Chairman, George Onafowokan, decried the rising cost of borrowing from commercial banks, driven by the high Monetary Policy Rate (MPR), which stood at 27.5 per cent as of May 2025. He warned that the cost of credit is becoming increasingly unsustainable for manufacturers, making loan repayment burdensome and significantly eroding profit margins.
“To ease this burden, we are actively looking into more affordable avenues for funding,” Onafowokan said. Institutions such as the Bank of Industry (BOI), LECON Finance Company, and Agusto & Co. were present to offer guidance on accessible and alternative financing mechanisms.
Onafowokan also highlighted the sector’s broader challenges, including the naira’s devaluation from N447 per dollar in December 2022 to N1,605 by mid-2024, surging production costs, and shrinking consumer purchasing power. Despite these setbacks, he noted that Ogun manufacturers have remained resilient, continuing to invest and operate across the state.
In response to these challenges, the Federal Government introduced a N75 billion Manufacturing Sector Fund and another N75 billion MSME Intervention Fund, both being disbursed through the BOI at a 9 per cent interest rate and a 1–5-year repayment period. These initiatives are aimed at providing manufacturers with more manageable financing terms.
Ogun State Commissioner for Industry, Trade, and Investment, Adebola Sofela, who represented Governor Dapo Abiodun at the event, praised manufacturers for their endurance. He assured stakeholders that the state government remains committed to improving the ease of doing business through tax harmonisation and infrastructure upgrades.
National MAN President, Otunba Francis Meshioye, also addressed the gathering, urging both state and federal governments to adopt policy measures that actively support local manufacturing. He pressed for the implementation of a “Nigeria First” policy, mandating government ministries and agencies to prioritise made-in-Nigeria products.
Meshioye stressed the need for policy-backed patronage with consequences for non-compliance. He further appealed to the Central Bank of Nigeria (CBN) to settle the $2.4 billion backlog in unpaid forex forwards owed to manufacturers and called for a revival of quarterly interactive sessions between industry leaders and government agencies.
He also demanded the rehabilitation of industrial roads in key hubs like Agbara and Ota and called for an end to multiple taxations and regulatory pressure, particularly from agencies such as the Financial Reporting Council.
During a presentation, Associate Director at Agusto Consulting, Oritsejimi Ogbobine, encouraged manufacturers to embrace alternative financing models, including equity markets, bonds, green finance, and support from development finance institutions such as AfDB, Afreximbank, and BOI. He also underscored the importance of creditworthiness and recommended that manufacturers obtain credit ratings to improve their attractiveness to investors.
The AGM, which marked 40 years of the Ogun MAN branch’s existence, ended with a renewed call for coordinated efforts to ensure a stronger, well-funded, and policy-supported manufacturing sector in Nigeria.
