Nigeria’s central bank has sent a clear message to industry leaders: the era of oil dependence must give way to a manufacturing-led export economy.
At the 54th Annual General Meeting of the Manufacturers Association of Nigeria (MAN), Apapa Branch, the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, urged manufacturers to spearhead efforts in diversifying Nigeria’s foreign exchange earnings away from crude oil.
Represented by Aliyu Ashiru, Director of Trade and Exchange Department, Cardoso warned that over 80% of Nigeria’s forex inflows still come from crude oil, leaving the economy dangerously exposed to global price shocks.
Why Manufacturing Matters for Forex Stability
According to Cardoso, the manufacturing sector holds the key to:
- Conserving forex by reducing import dependence.
- Earning forex through export of value-added goods.
- Creating jobs across skills and demographics.
- Strengthening macroeconomic stability by diversifying revenue.
He stressed that Nigeria must move beyond exporting raw materials to processing and exporting value-added products in agro-processing, petrochemicals, and solid minerals.
“This requires a deliberate, coordinated, long-term strategy backed by predictable policies and targeted incentives,” Cardoso said.
Strategic Pillars for Diversification
Cardoso outlined a five-pillar framework for transforming manufacturing into a major forex earner:
- Policy Alignment – Stable, predictable industrial policy integrated with fiscal and monetary frameworks.
- Incentives – Tax holidays, duty waivers for machinery, export rebates, and investment guarantees.
- Infrastructure & Energy – Roads, power, and logistics that reduce production bottlenecks.
- Access to Finance & Forex – Prioritising manufacturers with export potential in CBN’s interventions.
- Backward Integration – Building local supply chains in agriculture, petrochemicals, and mining.
MAN’s Position: Urgent Structural Fixes
Otunba Francis Meshioye, President of MAN, reinforced that global oil price volatility makes diversification urgent. He identified priority areas as:
- Lower production costs.
- Access to affordable finance.
- Improved industrial infrastructure.
- Promotion of high-export-potential products.
Meshioye also urged government to rehabilitate roads in key industrial clusters such as Amuwo-Odofin and Apapa, noting that poor logistics reduce competitiveness. He suggested a tax rebate-for-rehabilitation model, where firms co-finance road repairs in exchange for tax reliefs.
He further called for harmonisation of taxes and levies, particularly at local government level, to reduce exploitation and improve compliance.
Lagos State’s Commitment
Governor Babajide Sanwo-Olu, represented by Folashade Ambrose-Medebem, Commissioner for Commerce, Trade and Investment, said Lagos is championing agro-industrial linkages, strengthening local supply chains, and building a digital innovation-driven economy to support smart manufacturing.
He acknowledged that forex crises and disruptions have made clear the need to reduce import dependence and invest in competitive local industries.
The Hard Truth: Challenges Manufacturers Face
Raphael Danilola, Chairman of MAN Apapa Branch, highlighted persistent obstacles:
- Poor road networks in industrial zones.
- Inadequate and costly power supply.
- Rising logistics and security costs.
- Forex volatility impacting import of machinery and raw materials.
He stressed that unless these are addressed, manufacturing cannot meaningfully close Nigeria’s forex gap.
BRANDECONOMY Takeaway
Nigeria’s forex future cannot be left to oil markets. Manufacturing has the potential to emerge as the new backbone of forex diversification, but only if government matches rhetoric with reforms:
- Infrastructure investment to ease logistics.
- Incentive regimes targeted at exporters.
- Policy consistency to attract capital.
- Energy sector reform to power industrial clusters.
For manufacturers, the CBN’s message is clear: the responsibility of leading forex diversification now lies with industry itself.
And for policymakers, the task is urgent: build the enabling environment, or risk watching Nigeria’s forex crisis deepen.
