Manufacturer Demands Fiscal Policy Clarity To Unlock Sector’s Growth

The managing director and chief executive officer of Coleman Technical Industries Limited, manufacturers of wires and cables, George Onafowokan, has described 2025 as a relatively stable year for Nigeria’s manufacturing sector, expressing optimism that clearer fiscal policies and sustained economic reforms could unlock stronger growth from 2026.

Speaking in an interview while assessing business conditions and expectations for the coming year, Onafowokan said manufacturers have benefited from improved macroeconomic stability, including relative naira stability, easing inflation and steady economic growth.

“For the manufacturing sector, it has been a stable year. We are seeing stability in the naira, inflation trending downwards and economic growth of about 3.4 to 3.9 per cent, heading towards four per cent.

That stability is a good thing for manufacturers,” he said.

However, he noted that many manufacturers are yet to fully benefit from these improvements due to delays in implementing key fiscal policies.

According to him, fiscal policy measures proposed since 2023 are yet to be signed, leading to missed opportunities in 2024 and 2025.

Reflecting on Coleman’s performance, Onafowokan said that the company’s long-term prospects remain strong, given its capacity to serve Nigeria and the wider sub-Saharan African market.

“Our future prospects are quite high. Coleman is capable of servicing not only Nigeria but the entire sub-Saharan region from Nigeria, provided the enabling policies are in place,” he said.

He revealed that despite demand for infrastructure, the company is operating far below capacity, at less than 20 per cent of an eight-hour shift, due to limited policy support and operating constraints.
Looking ahead to 2026, which coincides with a pre-election year, Onafowokan expressed cautious optimism, citing positive budgetary signals, particularly increased capital expenditure, exchange rate stability and the prospect of easing interest rates.

“We see a positive outlook for growth. There is growing domestic investment, renewed foreign direct investment, infrastructure development and opportunities in sectors like oil and gas, telecoms and fibre optics. These developments could make 2026 a catalyst year for sustained strategic growth,” he said.
On the implementation of the new tax laws scheduled to begin in January 2026, the Coleman boss identified misinformation as the biggest concern for businesses and investors.

“There is more misinformation than correct information. Government needs to do more to explain the tax laws and their benefits,” he said, while commending aspects of the reforms that provide relief for low-income earners.

He warned that poor communication and immediate enforcement without sufficient transition time could distort markets, recalling how misinformation recently triggered significant losses in the stock market.

Onafowokan also clarified that withholding tax on savings interest remains a final tax, dismissing fears of double taxation, and urged authorities to intensify public education on the reforms.

He further welcomed the federal government’s focus on security and infrastructure in the 2026 budget, describing both as critical enablers of economic growth.

“Security is key to investment and growth. Infrastructure spending on roads, housing, power, hospitals and education is a catalyst for development. It opens up new markets, creates jobs and drives economic expansion across regions,” he said.