By Bimbola Oyesola
As Nigeria’s economy continues to strain under high inflation, volatile forex regime and soaring interest rates, manufacturers in Ogun State are calling for a decisive pivot toward alternative financing to keep the sector alive.
The Manufacturers’ Association of Nigeria (MAN), Ogun State branch, made this bold appeal during its 40th Annual General Meeting (AGM) held at the Conference Hotel & Suites, Abeokuta. With the theme “Financing Manufacturing Concerns: Exploring Alternatives,” the meeting brought together manufacturers, financial experts, development institutions, and government representatives.
In his keynote address, Ogun MAN chairman, Mr. George Onafowokan, underscored the heavy toll Nigeria’s monetary policies have taken on manufacturers. With the Central Bank’s Monetary Policy Rate (MPR) now at 27.5%, he noted, loans have become almost prohibitive.
“We are practically being priced out of finance. The cost of borrowing has become unsustainable for manufacturers already battling high input costs and declining consumer demand,” Onafowokan said. “It’s time we look beyond the traditional banks and seek smarter, long-term financing options.”
He pointed to the growing role of institutions like the Bank of Industry (BOI), LECON Finance, and Agusto & Co., who were present at the event to offer guidance on alternative funding pathways. Options discussed included bonds, equity financing, green funds, and development finance channels.
The economic context painted by Onafowokan was stark. The naira’s fall from N447/$ in late 2022 to N1,605/$ by mid-2024 has pushed up production costs drastically, while consumer purchasing power has sharply declined. Inflation, foreign exchange shortages, and inconsistent regulations have only added to the strain.
“Yet, despite all this, manufacturers in Ogun remain resilient,” he added. “We are still investing, still producing, still employing, but we need serious financial support to keep going.”
The meeting also reviewed the Federal Government’s recent interventions, including the N75 billion Manufacturing Sector Fund and a N75 billion MSME Support Fund disbursed at 9% interest through the BOI. While helpful, stakeholders agreed these are far from enough to cover the sector’s vast financing needs.
Representing the Ogun State Governor, Commissioner for Industry, Trade, and Investment, Mr. Adebola Sofela, praised the perseverance of local manufacturers and reiterated the state’s commitment to reducing the cost of doing business.
“We are working toward harmonized taxes, improving infrastructure, and simplifying regulatory processes to ease the pressures on manufacturers,” Sofela said.
In his address, National President of MAN, Otunba Francis Meshioye, did not mince words in urging governments at all levels to walk the talk on supporting local industry.
“It’s not enough to say ‘buy Nigerian’ — we must enforce it. Ministries, departments, and agencies should be mandated to procure locally made goods, and there must be consequences for non-compliance,” he said.
Meshioye also urged the Central Bank of Nigeria to urgently clear its backlog of $2.4 billion in unpaid forex forwards owed to manufacturers, warning that delays are further crippling production.
He called for the reinstatement of quarterly meetings between manufacturers and regulators, rehabilitation of inner industrial roads, and the elimination of redundant levies and agency interference, particularly from the Financial Reporting Council.
One of the highlights of the AGM was a presentation by Oritsejimi Ogbobine, Associate Director at Agusto Consulting, who laid out practical strategies for accessing non-traditional funding. He emphasized the importance of manufacturers improving their credit profiles.
“To attract serious investment, you must be bankable,” Ogbobine said. “Get rated, build transparency, and don’t shy away from tapping into equity markets or engaging development finance institutions like AfDB, AfriExim and BOI.”
The 40th anniversary of the Ogun MAN chapter served as both a milestone and a moment of reckoning. For many in attendance, it was clear that while the challenges remain formidable, the sector’s survival hinges on adaptation and on forging new financial pathways.
“The spirit of Nigerian manufacturers is unbreakable,” said Onafowokan. “But spirit alone won’t pay the bills. We need policies, capital, and consistent support to thrive.”
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