Manufacturers Hopeful for Sector’s Recovery After Tough 2023-2024
Manufacturers in Ogun State are showing optimism for a more stable future in the industry following a turbulent period marked by unsold inventory, soaring costs, forex scarcity, and infrastructural challenges. George Onafowokan, the Chairman of the Manufacturers Association of Nigeria (MAN) Ogun State Chapter, expressed cautious optimism as the sector begins to show signs of recovery in the mid-first quarter of 2025.
In an interview with The PUNCH, Onafowokan reflected on the tough period that saw manufacturers struggling with an unsold inventory worth N350 billion. High costs, lack of foreign exchange, and poor infrastructure were identified as the primary factors hindering productivity and marketability of manufactured goods.
A Challenging 2023-2024 for Manufacturers
Onafowokan lamented the significant losses faced by manufacturers throughout 2023 and 2024. “The 2023-2024 figures were very bad,” he said, highlighting the high exchange rate losses and the widespread financial strain on manufacturers. “There was almost no manufacturer that was not declaring losses between 2023 and 2024. It was a bad year for everybody, which also created a situation of unsold stocks.”
Signs of Recovery in 2025
Despite these setbacks, the Ogun State manufacturing sector is showing signs of improvement. Onafowokan pointed out that as 2025 progresses, new manufacturing companies are opening, and older ones are finding their balance after taking significant financial hits in the previous year. However, some manufacturers were not able to weather the storm, with a few businesses closing down.
“Going into 2025, everybody has had to take the hit on their losses and either move forward or, unfortunately, we had some who closed shop,” Onafowokan noted. “It was not good for our country, but whoever is left has managed to lick their wounds.”
The resilience of the sector is beginning to show, as manufacturers who have survived the difficult period look forward to more favorable conditions as they adjust to the current economic climate.
