President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, OFR, has said that the Association expectation is that the interest rate will begin to ease as it’s continued hike by the CBN has failed to curb inflation and has stifled investment and business expansion, saying that “Only a favourable interest rate environment would help manufacturers access the necessary financing to reinvest in their operations and drive productivity.”

He stated this in an address delivered at the 9th edition of the MAN Media Personality of the Year Award and 2025 Presidential Media Luncheon held at MAN house, Ikeja, Lagos on January 22, 2025.

He also stated that for the exchange rate, naira is predicted to move between ₦1500 and ₦1650 to 1 dollar in the first quarter of 2025.He emphasized that embracing  technological advancements like Artificial Intelligence ,(AI) could revolutionize production, logistics, and inventory systems, setting the stage for transformative growth in the manufacturing sector.

It was assumed that with effective management of the Electronic Foreign Exchange Matching System (EFEMS) introduced in November 2024 by the Central Bank of Nigeria (CBN) if properly implemented, could help stabilize the exchange rate.

The president noted that the contraction of the economy is expected to ease and experience some growth this year with stability in the exchange rate regime in 2025.

Meshioye while reflecting on the preceding year, noted that the sector grappling with inflation soaring to 34.6%, currency devaluation that pushed the Naira beyond ₦1700/$, and prohibitive interest rates peaking at 27.7%. These macroeconomic challenges, coupled with a 250% surge in electricity tariffs and security concerns, led to unsold inventories valued at a staggering ₦1.4 trillion and a drop in GDP contribution from 16.04% to 12.68%.

In recommendations, the president recommendsthe passing of critical tax reform, Priotizing made-in-nigeria product,Taming inflation and promoting food security, Addressing infrastructure deficits, Reducing electricity tariffs and enhancing access to credit.

Meshioye at the end lauded the media for their relentless pursuit of accountability and urged continued collaboration to foster a more vibrant manufacturing landscape.