Business
Challenges And Calls For Action: Nigeria’s Manufacturing Export Sector Faces Struggles Amid Infrastructure Woes
Challenges And Calls For Action: Nigeria’s Manufacturing Export Sector Faces Struggles Amid Infrastructure WoesThe landscape of Nigeria’s manufacturing export sector reveals a concerning trend marked by a significant decline in revenue, attributing factors of poor infrastructure, logistics inefficiencies, and a host of other persistent challenges. According to recent data, the sector witnessed a staggering 166 percent drop in revenue, plummeting to N778.4 billion from its zenith of N2.1 trillion in 2019.....KINDLY READ THE FULL STORY HERE▶
Operators within the sector have pointed to a confluence of factors exacerbating the adverse conditions. The deteriorating state of infrastructure, characterized by inadequate logistics and a lack of efficient transportation networks, has profoundly impacted the sector’s ability to compete globally. This trend, compounded by other binding constraints, has created a challenging operating environment, hindering the sector’s growth prospects.
The World Bank’s Africa Pulse publication further underscores the ramifications of Nigeria’s infrastructure deficiencies on foreign trade. It identifies the country’s high trade costs, which are four to five times higher than those in the United States, as a significant deterrent to export competitiveness. Insecurity, elevated transportation expenses, topographical challenges, and deficient road infrastructure collectively contribute to this disparity, highlighting the urgent need for infrastructure revitalization and logistical improvements.
Moreover, statistics from the World Trade Organization (WTO) underscore the stark discrepancy between Nigeria’s manufacturing export value and that of its counterparts, such as South Africa. Nigeria’s export value, standing at $3 billion in 2022, pales in comparison to South Africa’s $46 billion, indicative of the significant challenges facing Nigerian exporters on the global stage.
In response to these challenges, industry stakeholders, including the Manufacturers Association of Nigeria (MAN) and exporters, have called for government intervention. Emphasizing the imperative of addressing the rising cost of doing business, stakeholders advocate for strategic measures aimed at enhancing export competitiveness. These measures encompass access to affordable financing, streamlining regulatory processes, and fostering stakeholder engagements to chart a collective path forward.
The urgency of these interventions cannot be overstated, as the viability of Nigeria’s manufacturing export sector hinges on its ability to address structural impediments and enhance competitiveness. A collaborative effort between government, industry players, and relevant stakeholders is paramount in fostering an enabling environment conducive to sustainable growth and revitalizing Nigeria’s manufacturing export sector.
As the sector navigates these challenges, concerted efforts to address infrastructure deficiencies, streamline regulatory processes, and provide targeted support to exporters are essential for unlocking the sector’s full potential and positioning Nigeria as a competitive player in the global market.
Numerous businesses have ceased operations due to a range of policies that hinder business growth.
“Even those venturing into business through export face numerous hurdles, including policy barriers and security concerns.
“Addressing security issues to encourage agricultural activities, lowering interest rates to facilitate access to capital for productive sectors, and improving logistics for smoother transportation of goods are crucial steps.
“With Nigeria poised to participate in the African Continental Free Trade Area (AfCFTA), logistics challenges remain a significant obstacle to trade facilitation.
“These areas demand urgent attention from the government.”
Published by Caleb Alfred
The future of Nigeria’s Naira-for-Crude policy remains in limbo as negotiations continue between the Nigerian government and Dangote Refinery. The six-month agreement between the Nigerian National Petroleum Corporation (NNPCL) and Dangote Refinery expired on March 31, 2025, without a renewal, leading to the suspension of the refinery’s sale of refined petroleum products in Naira. However, the refinery has continued processing approximately 400,000 barrels of crude oil daily, with 35% of the crude sourced from international markets, particularly Brazil and Equatorial Guinea.....KINDLY READ THE FULL STORY HERE▶
Although the policy’s future is still under review, sources suggest that its economic implications, especially concerning fuel prices and foreign exchange rates, make it crucial to the national economy. Despite challenges in crude supply from NNPC, Dangote Refinery has expanded its global sourcing and is currently sourcing crude from Brazil’s Petrobras and Equatorial Guinea.
No official agreement has been reached yet to extend the Naira-for-Crude deal. The Nigerian government’s committee in charge of the policy is waiting for recommendations from the Nigeria Upstream Petroleum Regulatory Commission before proceeding. Meanwhile, the refinery’s management has expressed uncertainty regarding the renewal of the deal, citing concerns over the financial strain and volatility of exchange rates. The future of the policy remains unclear, with NNPC expected to supply crude oil to Dangote Refinery in April, but payment terms are yet to be finalized.
The price of cement, a vital resource for Nigeria’s construction industry, has witnessed significant changes recently, with rates fluctuating depending on brand, location, and market factors. Here is an overview of the current prices for some leading cement brands:....KINDLY READ THE FULL STORY HERE▶
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Dangote Cement: The cost of a 50kg bag of Dangote Cement ranges between ₦8,000 and ₦10,300. Known for its high quality, Dangote Cement remains a preferred choice in various construction projects. Prices are generally lower in areas near production plants but tend to rise in regions requiring extensive distribution.
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BUA Cement: Priced between ₦8,000 and ₦8,500 per 50kg bag, BUA Cement is popular among builders due to its competitive pricing and stability. Prices may vary slightly depending on proximity to manufacturing sites.
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Lafarge Water Shield Cement: Priced at ₦20,000 per 50kg bag, this cement variant is specifically formulated for durability and resistance to moisture, making it ideal for projects in damp environments.
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Waterproof Cement JK: Available at ₦15,000 per 50kg bag, Waterproof Cement JK is engineered to offer exceptional protection against water ingress, particularly useful for wet construction sites.
Over the past year, cement prices in Nigeria have surged significantly. At the start of 2024, a 50kg bag cost around ₦4,500. By November 2024, the price rose to about ₦8,500, reflecting an increase of approximately 89%. This upward trend is attributed to factors such as rising production costs, increased demand, and logistical challenges.
Marketers predict a potential further increase in cement prices, emphasizing the need for stakeholders in the construction sector to stay informed and plan accordingly.
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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