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Stakeholders Share Thoughts on What Nigeria Needs To Do For Thriving Manufacturing Sector

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By: Ocheneyi Alli

‘Setting The Agenda for Competitive Manufacturing under the AFCFTA : What Nigeria Needs to Do ‘

The above was the theme of the 3rd Adeola Odutola Lecture and Presidential Luncheon, organised by the Manufacturers Association of Nigeria (MAN), to mark its 51st Annual General Meeting (AGM).

At the event, held last week Thursday in Lagos, Otunba Francis Meshioye, the President MAN, said that the AGM theme was chosen to bring to the fore decades of the manufacturing sector’s successive low performance, and the promising growth trajectory and development opportunities that are embedded in the African Continental Free Trade Agreement (AfCFTA) for the Nigerian manufacturing sector.

AfDB and UNIDO Industrial Competitiveness Index

He cited the African Development Bank (AFDB)’s industrialization index, which reports that Nigeria is yet to perform impressively in Manufacturing outputs .

Also, the UNIDO’s industrial competitive performance index has shown that Nigeria’s industrial sector has a low competitive capacity.

“There is no better time than now to confront the challenge of low competitiveness and abysmal performance of this important sector,” said Meshioye.

▪︎Francis Meshioye, MAN President

Global manufacturing outputs

Evidences from several parts of the world, including China, the United States, Japan, Germany, and South Korea, have shown the importance of the manufacturing sector in building a resilient economy.

“As an example, in 2021, average manufacturing output accounted for as high as 35 per cent of Ireland’s GDP growth; 27.44 per cent in the case of China, and 48 per cent of Puerto Rico’s economy.

Agenda For The Sector’s Transformation

He said said that though,  the manufacturing sector is passing through hard and challenging times, setting a comprehensive agenda for the sector’s transformation will enhance its competitiveness and unlock its full potential.

Therefore, for the sector to do well, Meshioye, called on the Federal Government to ensure strict enforcement of local content laws in the manufacturing sector of the economy.

Meshioye, observed that Nigeria has a low local content adoption and patronage of made in Nigeria products, and therefore, urged the  government to ensure effective enforcement of local content and patronage regulations.

He said this can be achieved by strict enforcement of local content laws, giving  incentives for local sourcing of raw materials, and innovation in the manufacturing sector.

He also said that the government  should also compel its ministries, departments and agencies at all levels to , as a matter of national importance, step up their compliance with existing government directive on patronage of made-in-Nigeria products, including the Executive Orders 003 and 005.

In 2021, average manufacturing output accounted for as high as 35 per cent of Ireland’s GDP growth; 27.44 per cent in the case of China, and 48 per cent of Puerto Rico’s economy

* Manufacturing Outputs

Sectoral Linkages and backward integration

In addition he said the manufacturing sector is one of the sectors of the economy with wide sectoral interlinkages.

“However, the low level of development of auxiliary sectors is disentangling the manufacturing sector from the rest of the sectors.

This is more so in agriculture, iron and steel and mining sectors.

“This has resulted in a limited supply of raw materials and other input for the manufacturing sector,” he said .

Therefore, it is essential to encourage backward integration and sectoral linkages to promote a more sustainable manufacturing sector in Nigeria.” he advised.

Government and manufacturers roles

The Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, expressed the readiness of the Minister of Industry to collaborate with MAN for the resuscitation of industrialization, emphasising the pivotal role of manufacturing in enhancing economic competitiveness of the country.

She maintained that there are four areas of collaboration between the government and manufacturing sector’s operators.


Namely,  robust public private partnership particularly in the area of research and development to enhance the strength of manufacturing, supporting Micro, Small and Medium Enterprises (MSME) with capacity and potential for exports and investment in infrastructure and technology.

“We also must enhance quality standards and performance and adhere to international quality standards,” she said.

She maintained that Government is willing to support the establishment of research and development centres across the nation to enhance innovation and manufacturers should be encouraged to create these centres.

The Minister called on manufacturers to promote regional value chains and industrial clusters particularly with the ongoing efforts to join the second phase of the guided trade initiative.

“Together, we can ensure that Nigeria’s manufacturing sector not only thrives but becomes a global benchmark for manufacturing, contributing to the growth of the continent and the globe,” she said.

Keynote speaker’s  insights

▪︎Olusegun Aganga

Olusegun Aganga, the  Former Minister, Industry Trade and Investment, gave the keynote address.

Aganga offered insights into what Nigeria needs to do to harness the potential of AfCFTA and improve its manufacturing sector.

Aganga urged the federal government to declare the Industrial sector a national priority sector and back it with plans, policies and money.

The Former Minister pointed out that embracing competitive manufacturing under the AfCFTA is crucial for Nigeria’s economic growth and integration into the global marketplace.

“Nigeria may not be able to compete with China now, but by investing in infrastructure, innovation and skilled labour, while addressing trade barriers, the business environment and promoting market access, Nigeria can certainly position itself as the manufacturing hub in Africa.

Needs for National Competitiveness Council (NCC)

“Let us work together and seize this historic opportunity and create a prosperous and vibrant manufacturing sector that will benefit Nigerians and contribute to the economic development of the African continent as whole,” he said.


Moreover, Aganga underscored the significance of establishing a National Competitiveness Council (NCC) as an effective platform for constructive public-private dialogue on economic competitiveness.


NCCs, a proven global approach, help provide objective information on a nation’s competitiveness status and promote awareness of the correlation between national competitiveness, business performance, economic growth, and the overall prosperity of the population, he added.

The Former Minister also advocated the streamlining  of the Customs procedures and regulations to simplify cross-border trade while reducing associated costs.

He urges Nigeria to harmonizing standards and norms to minimize non-tariff barriers and implementing the WTO Trade Facilitation Agreement were key steps for Nigeria’s progress.

Monitoring Progress and making adjustments

“We must continuously monitor and evaluate our progress, making necessary adjustments along the way,” he stated.

▪︎From left: Segun Ajayi-Kadir, MAN Director-General, and Omotayo Okewunmi, MAN PRO, anchor the event.

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NESG Urges Diversion of Nigeria’s Trade Amidst U.S and China Tariffs War

Given Nigeria’s heavy reliance on imported manufactured goods and raw materials, NESG warns that the country could face significant economic challenges if these trade tensions escalate further

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▪︎Dr Jumoke Oduwole, Minister of Industry, Trade and Investment.

The Nigerian Economic Summit Group (NESG) has stressed the need for Nigeria to divert its trade pattern towards countries that are unaffected by the U.S. tariffs.

The NESG made the call in its latest Foreign Trade Alert: 2024Q4 & Full Year 2024.

The report highlighted Nigeria’s vulnerability to global trade disruptions, particularly in its import-dependent industrial sector.

“The trade war between the U.S. and China needs to be hedged against.  This would reduce tariff-induced increases in import bills, considering that the country’s import-dependent non-oil industrial sector is highly vulnerable,” the report noted.

The United States imposed a 10% tariff on Chinese imports in February 2025, with plans to increase it by another 10% in April.

In retaliation, China announced additional tariffs of 10-15% on certain U.S. imports starting March 10, 2025, along with a series of export restrictions targeting designated U.S. entities.

These measures are expected to disrupt global supply chains, slow world trade growth, and drive up the prices of globally traded commodities.

Given Nigeria’s heavy reliance on imported manufactured goods and raw materials, NESG warns that the country could face significant economic challenges if these trade tensions escalate further.

China remained Nigeria’s largest trading partner in Q4 2024, followed by India, Belgium, the U.S., and France.

The most imported commodities during the period included refined petroleum products, sugar cane, and spare parts.

However, Nigeria’s reliance on imports, particularly from China, makes it susceptible to price fluctuations and supply chain disruptions stemming from the U.S.-China trade conflict.

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Tax Reform Bills: Reps retain 7.5% VAT, reject increase to 15% by 2030

The House also dismissed a proposal to reintroduce inheritance tax under the guise of taxing family income.

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The House of Representatives has retained Value Added Tax (VAT) at 7.5 percent, rejecting a proposed gradual increase to 15% by 2030.

The House also dismissed a proposal to reintroduce inheritance tax under the guise of taxing family income.

The Chairman of the House Committee on Finance, Rep. James Faleke, during today’s plenary, stated that the submitted report represents a comprehensive review of the bills, incorporating extensive public input.

The report covers four key bills aimed at overhauling Nigeria’s tax framework: Nigeria Tax Bill Nigeria Tax Administration Bill Nigeria Revenue Service (Establishment) Bill Joint Revenue Board (Establishment) Bill Key Amendments in the Tax Reform Bills Nigeria Revenue Service (NRS) Bill .

The NRS will now focus on federal-level revenue collection, excluding individual taxpayers in states and the Federal Capital Territory (FCT). Board Composition: Section 7 now requires six executive directors, each appointed by the president from the six geopolitical zones on a rotational basis.

Each state and the FCT will also have a representative on the board.

Secretary Qualifications: Section 13 mandates that the Secretary to the Board must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher.

Fixed Funding Rate: The NRS will now receive a 4% cost-of-collection rate (excluding royalties), subject to National Assembly approval.

Borrowing Powers Restricted: Section 28 now requires Federal Executive Council (FEC) and National Assembly approval before the NRS can secure any loans.

Joint Revenue Board (JRB) Bill Tax Appeal Commissioners’ Criteria Revised: Section 25 removes the requirement that commissioners must have business management experience, as the Committee deemed it irrelevant.

Strengthened Tax Ombud’s Independence: Section 43 mandates that the Tax Ombud’s Office be funded directly from the Consolidated Revenue Fund, eliminating reliance on external donations.

Independent Funding for Tax Appeal Tribunal (TAT): The tribunal will now operate independently of the Federal Inland Revenue Service (FIRS) to prevent conflicts of interest.

Stricter Adherence to the Evidence Act: New rules ensure that tax appeal proceedings strictly follow the Evidence Act.

Taxpayer Identification Number (TIN) Processing:

The timeline for issuing TINs has been extended from two working days to five to accommodate administrative delays.

Faster Tax Returns for Ceased Operations: Companies ceasing operations must now file income tax returns within three months, down from six months, to prevent revenue loss.

VAT System Adjustments: Section 22 ensures that taxable supplies are attributed to their place of consumption, addressing regional imbalances.

VAT Fiscalisation System: Section 23 introduces a new regulatory framework to improve VAT collection.

Increased Reporting Thresholds for Banking Transactions:

Individuals: ₦25 million → ₦50 million Corporate Entities: ₦100 million → ₦250 million

Judicial Oversight on Asset Seizure: Section 60 mandates that tax authorities must obtain a court order before seizing movable assets.

Mandatory Electronic Taxpayer Records Access: Section 61 formalizes the government’s right to access electronically stored tax records in line with modern practices.

New VAT Revenue Distribution Formula: 70% distributed equally among local governments 30% based on population .

General Amendments Across Tax Bills VAT Rate Maintained at 7.5% –

The Committee rejected the proposal to gradually increase VAT to 15% by 2030. Petroleum Gains Tax Reduced to 30% – Section 78 revises the tax rate on petroleum gains from 85% to 30%.

Excise Duty Provisions Removed – Excise duty-related provisions were deleted due to concerns about their negative economic impact.

Higher Turnover Threshold for Small Companies:

A business will now be classified as a small company if its annual turnover is ₦100 million or less (asset cap remains at ₦250 million).

New Penalties for Virtual Assets Service Providers (VASPs):

Stricter fines and potential license suspensions for non-compliant crypto and digital asset businesses.

While submitting the report, Rep. Faleke highlighted the importance of the tax reform bills in modernizing Nigeria’s tax system, boosting revenue collection, and fostering economic growth.

“These Bills are critical to implementing a modern, transparent, and efficient tax system that will support economic growth and improve revenue collection,” he said.

He added that the review process was extensive, incorporating input from the public and key government agencies, including: Nigeria Export Processing Zones Authority (NEPZA) National Agency for Science and Engineering Infrastructure (NASENI) National Information Technology Development Agency (NITDA) Tertiary Education Trust Fund (TETFund)

“We carefully examined every submission to ensure that public opinion was reflected in our recommendations. This process involved a thorough review of existing laws proposed for repeal or amendment,” Faleke noted.

The amendments impact key laws, including: Companies Income Tax Act (CITA) Value Added Tax Act (VAT Act) Personal Income Tax Act (PITA) Federal Inland Revenue Service (Establishment) Act Petroleum Industry Act Nigeria Export Processing Zones Act Oil and Gas Free Trade Zone Act

The House of Representatives is expected to deliberate on the report in the coming weeks as part of its legislative process.

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ANED Tells Airforce Base Ikeja ” No Payment,  No Reconnection”

The Sam Ethnam Air Force Base Ikeja was disconnected last week due to the unpaid debt, which impacted negatively on the operations of the Ikeja Electric Plc.

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THE Association of Nigerian Electricity Distributors, (ANED), the professional association of the 11 electricity distribution companies, DisCos, in the country, said, yesterday that the Sam Ethnam Air Force Base Ikeja, Lagos, would not be reconnected to the grid without the settlement of its N4.3 billion debt to Ikeja Electric Plc.

The Sam Ethnam Air Force Base Ikeja was disconnected last week due to the unpaid debt, which impacted negatively on the operations of the Ikeja Electric Plc.

In reaction to the Airforce officials’ invasion of the headquarters of the Ikeja Electric Plc, vandalizing equipment and beating personnel and others, including journalists, Executive Director, Research and Advocacy, ANED, Sunday Oduntan, said: “Reconnection is not possible immediately.

They have to pay what they owe us.” Vanguard, learned weekend that there were ongoing engagements, targeted at ensuring payment and reconnection of The Sam Ethnam Air force Base Ikeja

He also said: “The attack of Ikeja Electric Plc should not happen in a civilian administration because there are better ways of resolving issues.”

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