Nigeria’s manufacturing executives have reported a marginal rise in business confidence, signalling cautious optimism amid persistent macroeconomic headwinds.
The Manufacturers Association of Nigeria (MAN) said its Chief Executive Officers’ Confidence Index (MCCI) increased to 50.7 points in the third quarter of 2025 — a 0.4-point rise from the previous quarter.
Speaking in Lagos on Tuesday, MAN President Francis Meshioye said the uptick reflected the sector’s resilience, despite slower real output growth and ongoing operational constraints.
“While CEOs’ confidence has improved, real output growth slipped from 1.69 per cent to 1.6 per cent in the second quarter, contributing 7.81 per cent to GDP — down from 9.62 per cent,” Meshioye said.
He cited high borrowing costs, energy expenses exceeding ₦676.6 billion, foreign exchange shortages, and rising unsold inventories as factors limiting expansion.
“The fragile recovery demands urgent policy interventions to lower energy costs, ease access to credit, and stabilise foreign exchange liquidity,” he said.
MAN Director-General Segun Ajayi-Kadir said the modest rise marked the second straight quarterly increase, reflecting improved sentiment in business and employment conditions.
However, production indicators declined marginally due to energy supply disruptions caused by industrial disputes in the oil and gas sector.
Ajayi-Kadir said expectations for the next quarter remained above 50 points, buoyed by policy shifts including the benchmark interest rate cut, tax incentives for local sourcing, and the suspension of the four per cent Free-on-Board levy.
“Manufacturers are hopeful that the upcoming National Industrial Policy will be anchored on private sector leadership — a crucial step for driving competitiveness and investment,” he added.
MAN’s Director of Research and Economic Policy, Dr Oluwasegun Osidipe, urged the Federal Government to strengthen industrial policy implementation through dedicated financing mechanisms, enhanced trade representation, and improved security in industrial clusters.
He also called for MAN’s participation in power sector regulation and inclusion in the Nigeria Electricity Regulatory Commission, stressing that reliable energy supply is fundamental to industrial recovery.
