Soaring Interest Rates and Energy Costs Imperil Nigeria’s Manufacturing Sector, Warn Experts

A new report by the Manufacturers Association of Nigeria (MAN) has raised concerns about the future of Nigeria’s manufacturing sector, as high interest rates and energy costs threaten its viability. According to a report by Techeconomy, MAN warned that the sector’s competitiveness is being undermined by the high cost of borrowing, with interest rates reaching as high as 32%. This is compounded by the high cost of energy, which has risen significantly in recent years.

The high cost of energy, coupled with poor infrastructure and logistics, has been identified as a major challenge for Nigeria’s bid to become a manufacturing hub, according to a report by LEADERSHIP Newspapers. Stakeholders have called for urgent action to address these challenges, warning that failure to do so could jeopardize Nigeria’s ambition to become a major player in the global manufacturing sector.