The Manufacturers Association of Nigeria (MAN) has called for urgent measures to reduce the cost of energy, transportation, finance and other inputs following the marginal moderation in Nigeria’s headline inflation rate to 15.39 per cent in August 2026.
MAN, in its assessment of the August inflation figures, noted that the rate declined slightly from 15.43 per cent recorded in July, representing a 0.04 percentage-point reduction.
The association described the development as a positive signal, noting that price stability was important for business planning, investment and consumer welfare.
However, MAN cautioned that the marginal decline suggested that the improvement remained fragile, stressing that a lower headline inflation rate did not necessarily translate into lower production costs for manufacturers.
According to the association, manufacturers continue to contend with high energy costs, logistics challenges, exchange-rate pressures, elevated raw-material prices and multiple fiscal and regulatory charges.
MAN said the focus should therefore shift from merely managing inflation to addressing the structural costs that make domestic manufacturing expensive.
The association warned that manufacturers were unable to fully pass increased production costs to consumers because of weak purchasing power, leaving businesses with squeezed profit margins and increased working-capital requirements.
It added that high energy, financing and logistics costs could constrain investment decisions and capacity utilisation, as some manufacturers might reduce production when the cost of operating additional shifts or procuring inputs becomes commercially unsustainable.
“Local products may become less competitive,” MAN stated, noting that high domestic production costs could make it more difficult for Nigerian manufacturers to compete with imported products, particularly where imports enter the market at lower costs.
The association also expressed concern that sustained cost pressures could limit manufacturers’ ability to expand production and create additional jobs.
While acknowledging the modest moderation in inflation as a positive development, MAN said sustainable economic growth required an operating environment where manufacturers could access affordable energy, finance, foreign exchange and logistics, while increasing the local sourcing of inputs.
To address the challenges, the association called on the Federal Government to introduce targeted cost-reduction and productivity-enhancing measures.
MAN urged the government to reduce energy costs by providing dedicated and reliable electricity to major industrial clusters, ensuring priority access to gas for industrial users and offering incentives for manufacturers investing in efficient captive power and renewable-energy systems.
It also called for a review of electricity tariff structures affecting productive industries, with the objective of reducing the energy cost required to produce each unit of manufactured output.
On transportation, MAN noted that the sector contributed 1.64 percentage points to inflation and urged the government to identify and prioritise major transport corridors connecting ports, industrial clusters, agricultural production zones and major markets for rehabilitation and maintenance.
It further called for collaboration between the Federal and state governments to eliminate unnecessary road charges and overlapping transport-related levies.
On taxation, the association urged the government to implement relevant provisions of the new tax laws in ways that promote equity, fairness and transparency, while eliminating multiple taxation and overlapping levies that could increase the cost of local production.
MAN also called for effective implementation of the Nigeria First Policy to promote the procurement and consumption of locally manufactured goods, particularly in government procurement.
The association further recommended the establishment of a targeted, long-term manufacturing financing window at below-market rates to support working capital, machinery acquisition and productivity-enhancing investments, particularly for micro, small and medium-sized manufacturers.
MAN said the measures would help Nigeria build a manufacturing sector capable of producing more at lower cost, while supporting investment, employment and competitiveness.
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