‘Nigeria’s Economy Showing Signs of Recovery Despite Q1 Challenges’

The managing director and chief executive officer of Coleman Technical Industries Limited, has stated that the economy is beginning to show signs of recovery despite persistent challenges in the first quarter of the year.
Speaking during an interview while reacting to developments in the manufacturing sector in Q1, the Coleman boss said the business environment remains tough, but noted that some of the pressures,particularly inflation, are often absorbed by companies through reduced profit margins and improved operational efficiency.
According to him, scale remains a major factor for survival in several sectors of the economy, especially in industries such as beverages.
“If you look at the beverage industry, both non-alcoholic and alcoholic, it is a volume game. You cannot come into that market as a small player and do well. You need to be a volume player, and that means you must invest massively,” he said.
He pointed to recent large-scale investments in the beverage sector as evidence that manufacturers continue to see long-term opportunities in Nigeria despite current economic headwinds.
On government fiscal measures, he acknowledged that some policies have created discomfort for manufacturers but argued that reforms must be assessed in terms of their broader economic impact.
He specifically addressed the issue of the sugar tax, noting that while manufacturers initially opposed it, there is a need to strike a balance between industrial growth and public health concerns.
According to him, rising cases of diabetes and related health conditions globally have pushed governments to adopt policies aimed at reducing sugar consumption, although he stressed that such measures should be implemented gradually in Nigeria to avoid hurting local industries and jobs.
He explained that while manufacturers may have concerns in some areas, there are also policy gains worth acknowledging.
The Coleman MD also praised the government’s zero-duty policy on electric vehicles (EVs), describing it as a forward-looking initiative that could help reduce transport costs and encourage a transition from fossil fuels.
He said Nigeria has yet to fully tap into the opportunities in the EV market, particularly given the large number of manufacturers in China and the relatively low cost of some electric vehicles globally.
“Greater competition among importers and new market entrants will eventually bring down prices for Nigerian consumers”, he said.
He noted that EV ownership is already proving cost-effective for some users, citing examples of motorists who spend significantly less on charging compared to fueling conventional vehicles.
He said while Nigerians may still feel the effects of current economic pressures through the second quarter, conditions are likely to improve by the third and fourth quarters of the year.
According to him, increased infrastructure spending, policy reforms, and adjustments made in recent years are beginning to lay the foundation for stronger economic performance.
He argued that the difficult reforms undertaken by the government, including foreign exchange reforms and the removal of fuel subsidy were necessary, even though they came with short-term pain.
The Coleman CEO said the true benefits of such reforms typically take time to materialise, adding that Nigeria may now be entering the phase where the gains begin to emerge.