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MAN Endorses Nigeria-UNIDO $174.59 Million Development Pact

MAN Supports Nigeria-UNIDO $174.59 Million Development Pact - Oriental News Nigeria

The Manufacturers Association of Nigeria (MAN) has expressed its endorsement of the recently signed $174.59 million development pact between Nigeria and the United Nations Industrial Development Organization (UNIDO), which aims to boost industrial growth and sustainable development across the nation.

Specifically, the Association commends the $174.59m Programme for Country Partnership (PCP) agreement to boost Nigeria’s industrial development.

Otunba Francis Meshionye, pledged MAN’s unwavering support in collaborating with stakeholders to ensure the successful implementation of these initiatives. By focusing on job creation, the program aims to empower the workforce and reduce unemployment rates, thereby bolstering the economy. Furthermore, enhancing raw material availability is vital for manufacturers, as it will decrease production costs and improve competitiveness. The potential for increased exports will not only contribute to the nation’s foreign exchange reserves but also position Nigeria as a key player in the global market. Finally, attracting investments will provide the necessary capital for growth and innovation, ultimately driving the manufacturing sector forward. Under Meshionye’s leadership, MAN is committed to working hand-in-hand with the government and other relevant bodies to turn these aspirations into reality, paving the way for a more sustainable and prosperous manufacturing landscape in Nigeria.

The agreement, which will run for four years from 2024 to 2028, seeks to enhance the country’s industrial capacity, drive technological innovation, and promote sustainable industrial practices.

The recent partnership signed by Senator Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning, marks a significant milestone in the Nigerian government’s ongoing efforts to foster industrial growth, create job opportunities, and stimulate economic transformation.

In a statement, Bagudu emphasized the initiative’s potential to enhance Nigeria’s industrial capacity, drive technological innovation, and promote environmentally sustainable practices within the industrial sector. This strategic collaboration is poised to catalyze investments and streamline processes that will ultimately lead to a more robust economy, better equipped to meet the challenges of the 21st century.

“The Federal Government of Nigeria and the United Nations Industrial Development Organisation have signed a Programme for Country Partnership agreement amounting to $174,585,000 for industrial development of the country.” he said.

Bagudu noted that the programme would provide economic opportunities, particularly for young people and marginalised groups.

The Minister disclosed that the funding strategy for the PCP involves 85.7 per cent, or $149.62m, from donor partners mobilised by UNIDO, while the Federal Government will provide 14.3 per cent, or $24.97m, as counterpart funding.

He noted that Nigeria had already made a financial commitment of $1.28m as payment to UNIDO.

Bagudu called on stakeholders, including development partners, the private sector, and civil society, to collaborate for the seamless implementation of the programme. He also commended UNIDO for its continued partnership and support for Nigeria’s industrial agenda.

In a recent address, the Minister of State for Industry, Senator John Owan Umoh, articulated a vision for an invigorated partnership with the United Nations Industrial Development Organization (UNIDO) as a cornerstone of the nation’s industrial strategy. Speaking at the launch event for the country’s latest industrial initiative, Senator Umoh emphasized that UNIDO’s involvement is pivotal in both technical advisory and strategic capacity. Given UNIDO’s global expertise and track record in fostering sustainable industrial development, the agency is uniquely positioned to support the government in actualizing its Industrial Revolution Work Group objectives. He highlighted the critical value of harnessing UNIDO’s resources and insights to facilitate innovative solutions that can drive competitiveness and economic growth. By integrating UNIDO’s frameworks and methodologies, the program aspires to not only bolster industrial capacity but also to position the nation as a regional leader in sustainable industrialization efforts.

He urged stakeholders to move from potential to productivity and from policy to prosperity as the PCP is implemented.

The Director-General of UNIDO, Mr Gerd Muller, said the PCP aligns with UNIDO’s mandate to promote industrial development among member states, with a focus on Sustainable Development Goal 9.

He noted that Nigeria has the potential to become an economic powerhouse in Africa.

The Permanent Secretary, Ministry of Budget and Economic Planning, Dr Emeka Vitalis Obi, said the series of engagements between the Ministry of Budget and Economic Planning, the Ministry of Industry, Trade and Investment, and UNIDO have reinforced the government’s commitment to ensuring the successful implementation of the PCP.

by Online Poster — April 7, 2025 in Industry 0

Manufacturing costs soared by 18.2% in Q4 – MAN

The Manufacturers Association of Nigeria (MAN), said that the production and distribution costs in the manufacturing sector surged by 18.2 per cent in the fourth quarter of last year. Showing the macroeconomic environment’s as a worsening impact on manufacturers.

Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, disclosed this in the Q4 2024 Manufacturers CEO Confidence Index report, made available to news men showing how the industry’s struggles with high costs, policy inconsistencies, and economic instability.

Following the report he states, “The findings show that production and distribution costs surged further by 18.2 per cent in the quarter under review, from the 20.1 per cent increase witnessed in the preceding quarter.”

While the report indicated a slight improvement in sales volume by 1.1 per cent, other key indicators such as capacity utilisation, manufacturing investment, and employment recorded further contractions.

Ajayi-Kadir revealed in the report that capacity utilisation declined by 0.8 per cent in Q4 2024 while manufacturing investment dropped by 1.2 per cent.

Employment in the sector also fell by 0.7 per cent, although the contraction was lower than the 3.5 per cent recorded in Q3 2024.

Ajayi-Kadir also noted that the cost of shipment rose by 11.6 per cent in Q4 2024 from the 17 per cent increase recorded in Q3 2024.

“A close observation of the analysis indicates that only the sales volume recorded a favourable change during the period of review,” MAN’s DG stated. “However, the analysis generally reveals that the adverse effects of the prevailing macroeconomic reforms are diminishing as production and distribution costs, capacity utilisation, volume of production, investment, employment, and cost of shipment recorded lower adverse changes compared to the previous quarter.”

Manufacturers identified high energy costs, forex scarcity, multiple taxation, and poor infrastructure as the biggest threats to their survival.

According to the report, high electricity tariffs and the cost of alternative energy remained a major burden on production.

The manufacturing chief executive officers also flagged the high exchange rate, interest rate hikes, and inconsistent government policies as factors crippling their businesses.

“Manufacturing operations were directly stalled by the lingering effects of high raw material costs, energy, and logistics, as the existence of high exchange rates, interest rates, and inflation rates remain unfavourable to the overall business environment,” the report noted.

Despite the tough conditions, the MCCI inched up by 0.5 points to 50.7 points in Q4 from 50.2 points in Q3, reflecting marginal optimism among industry players.

However, projections for the first quarter of 2025 show a downward trend.

The expected business condition dropped from 56 points to 53.2 points, while the projected employment condition slid to 53 points.

The anticipated production level also fell from 54.3 to 54 points, indicating manufacturers’ fears of further economic downturns.

The report suggested that hopes for stability in exchange rates, a halt in interest rate hikes, lower energy costs, and tax reforms were keeping optimism afloat.

Manufacturers urged the Federal Government to take immediate steps to ease the financial and operational burden on the sector.

Key recommendations include suspending further electricity tariff hikes and reviewing previous increases, pausing interest rate hikes, directing banks to offer manufacturers single-digit loans, and expanding the Bank of Industry’s capital base to improve access to industrial credit.

Ajayi-Kadir also called for the clearing of the outstanding $2.4bn forex forward contract to restore confidence in the currency market, halting the 15 per cent increase in port charges and facilitating the implementation of the National Single Window project to reduce trade costs.

He also recommended fast-tracking tax reforms and establishing a more transparent exchange rate mechanism for customs duties.

MAN’s DG emphasised that addressing these challenges would stabilise the manufacturing sector, boost production, and drive economic growth.

“Nigerian manufacturing is on its last breath. The future of the country will continue to hang in the balance unless the plight of manufacturers is adequately addressed with appropriate interventions,” he warned.

MAN’s MCCI is an index to measure changes in the quarterly pulse of manufacturing activities concerning movement in the macroeconomy and government policies. It has a baseline of 50 points, suggesting a stationary point in the economy.

When the MCCI rises above 50 points, it shows manufacturers have increasing confidence in the economy, and when it drops below 50, it signifies otherwise.

by Online Poster — February 12, 2025 in Industry