Manufacturers’ drive to reduce dependence on imported inputs and foreign exchange pushed investment in the sector up by 102.16 per cent to ₦1.33 trillion in 2025, from ₦658.81 billion in 2024, the Manufacturers Association of Nigeria has said.

Vanguard reported that the Director-General of MAN, Segun Ajayi-Kadir, disclosed this in the association’s 2025 annual report, released recently. He attributed the surge to aggressive backward integration and the expansion of local production capacity by manufacturers.

According to him, the investment drive reflects efforts by manufacturers to cut their exposure to foreign exchange illiquidity, while strengthening domestic supply chains and improving operational efficiency amid rising production and distribution costs.

A half-yearly breakdown of the figures showed that manufacturing investment rose to ₦764.07 billion in the second half of 2025, from ₦567.82 billion in the first half, an increase of 34.56 per cent.

Ajayi-Kadir also highlighted manufacturers’ growing investment in distribution infrastructure, particularly the acquisition of their own vehicle fleets to manage rising energy costs and third-party haulage charges.

He said that with transportation and logistics expenses mounting, manufacturers were increasingly investing in their own fleets to gain greater control over distribution costs and protect their margins.

To sustain the investment momentum and deepen local value addition, the MAN Director-General proposed a series of policy measures. These are aimed at strengthening backward integration, expanding domestic sourcing and making government procurement more supportive of Nigerian industries.

He advocated a tiered corporate tax rebate of between 10 and 15 per cent for companies that achieve certified local raw material sourcing thresholds of at least 40 per cent.

He also proposed the establishment of a digital National Value Chain Portal to connect large-scale manufacturers with verified local small and medium-scale industrial (SMI) suppliers of raw materials and intermediate goods.

On public procurement, Ajayi-Kadir called for the enactment of a Local Patronage Compliance Act. It would require ministries, departments and agencies (MDAs) to give Nigerian manufacturers the right of first refusal in procurement.

Under the proposal, a temporary Certificate of Non-Availability, issued by MAN through the Federal Ministry of Industry, Trade and Investment, would be required before government agencies could buy products from foreign suppliers.

He further recommended that budget releases to MDAs be tied to verifiable evidence of compliance with Executive Order 003 and the Federal Government’s Nigeria First Policy, including invoices showing purchases of Nigerian-made products.

To ensure continuity and accountability, he urged the National Assembly to pass the Nigeria Industrial Policy into law. This would make its targets and incentives legally binding and protect them from arbitrary changes or abandonment by successive administrations.

He also proposed a mandatory annual State of the Industrial Sector report to the National Assembly in the first quarter of every year. The report would track implementation of the Nigeria Industrial Policy against measurable performance indicators.

The proposals, he said, are aimed at translating rising investment into stronger domestic supply chains, greater local production capacity and sustainable industrial growth.