MAN Backs Local Sourcing of Raw Materials Amid New CBN Data
The Manufacturers Association of Nigeria (MAN) has renewed its call for stronger local sourcing of raw materials, citing recent data from the Central Bank of Nigeria (CBN) that highlights ongoing pressures on manufacturing capacity utilization.
Industry leaders say the latest figures underscore structural challenges facing manufacturers, including foreign exchange constraints, rising input costs, and supply chain disruptions. According to MAN, increasing the use of domestically sourced inputs could help stabilize production, reduce exposure to currency volatility, and improve the sector’s resilience.
In a statement following the release of the CBN report, MAN emphasized that overreliance on imported raw materials continues to weigh heavily on operating costs. The association argued that prioritizing local alternatives would not only support manufacturers but also stimulate broader economic activity by strengthening agricultural, mining, and intermediate goods industries.
Manufacturers also pointed to inflationary trends and logistics bottlenecks as key factors affecting output. By deepening local value chains, stakeholders believe companies could shorten supply cycles and mitigate some of the cost pressures associated with imports.
Economic analysts broadly agree that improved local sourcing aligns with Nigeria’s long-term industrialization goals, though they caution that success depends on complementary investments in infrastructure, quality standards, and financing. Without reliable power, transport networks, and consistent policy support, shifting to domestic inputs may remain challenging for many firms.
The CBN data, while reflecting modest improvements in some segments, indicates that capacity utilization remains below optimal levels. MAN maintains that targeted incentives for local production of raw materials — alongside regulatory clarity and access to credit — are critical to unlocking higher manufacturing performance.
As policymakers continue to seek pathways for economic diversification, the manufacturing sector remains central to employment generation and export growth. MAN’s latest position adds to ongoing debates about how best to strengthen domestic industry amid global economic uncertainty.
