Manufacturers Seeks FX Window, Credit Scheme As Textile, Auto Jobs Decline

The Manufacturers Association of Nigeria (MAN), urged the federal government to deploy a dedicated credit guarantee scheme and establish a prioritized FX clearance window for manufacturers to stem job losses in labour-intensive sectors.

MAN in its report on the second quarter (Q2) 2026 GDP said the 4.43 per cent headline growth masks deep structural problems in the real sector.

According to the association, while GDP growth improved from 3.89 per cent in Q1 2026, high-employment manufacturing sub-sectors are stalling or contracting.

Textile, Apparel & Footwear, which accounts for 22.95 per cent of manufacturing real GDP, contracted by 1.23 per cent. Motor Vehicles & Assembly also fell by 1.02 per cent. The largest manufacturing group, Food, Beverage & Tobacco, grew modestly by 2.79 per cent due to weak consumer purchasing power and food inflation.

The director-general, MAN, Segun Ajayi-Kadir stated that “growth was concentrated in capital-intensive segments like Oil Refining and Cement, but our labour-intensive sectors are under severe pressure.”

He said, “the contraction in textiles and vehicle assembly directly threatens wage employment and risks triggering job losses across lower- and middle-income demographics.”

To reverse the trend, Ajayi-Kadir said MAN is calling for two immediate interventions: a prioritized, transparent FX clearance window for raw material and capital machinery imports backed by Letters of Credit, and a dedicated credit guarantee scheme through Ministry of Finance Incorporated (MOFI) and Development Bank of Nigeria (DBN) to de-risk commercial bank lending and lower interest rates for manufacturers.

“Outrageous interest rates, high exchange rates and exorbitant electricity tariffs are suffocating manufacturers, especially SMEs,” Ajayi-Kadir stated.

He also said, “without targeted monetary and FX interventions, industrial expansion will continue to lag behind broader economic activity.”

MAN DG urged the National Assembly to pass the Nigeria Industrial Policy 2025 as an Act and integrate the Bureau of Public Procurement portal with a local content registry.

He proposed automatically blocking budget releases to MDAs that fail to meet a 60 per cent local procurement target, and enacting a Local Patronage Compliance Act giving Nigerian manufacturers right of first refusal.

“Services and trade at 56.62 per cent and 17.93 per cent of GDP respectively do not inherently generate the sustainable productivity or high-density employment required to absorb Nigeria’s growing labour force,” Ajayi-Kadir said.

He pointed out that “we must pivot to manufacturing to strengthen FX reserves, reduce inflation and create sustainable jobs.”