‘Dear Mr. President, please do not let this 15% import tariff punish Nigerians again’

The Chemical and Non-Metallic Products Employers Federation (CANMPEF) has warned that rising production costs, multiple taxation, and foreign exchange volatility continue to threaten Nigeria’s industrial stability, even as manufacturers demonstrate resilience and innovation in adapting to the nation’s challenging economic environment.

Presenting the President’s Report at CANMPEF’s 46th Annual General Meeting in Lagos, Chief Devakumar Edwin said that despite macroeconomic headwinds, the sector recorded modest growth in 2024, driven by local resource utilisation, product diversification, and expanding regional export opportunities.

Edwin outlined a 2025 industrial agenda focusing on infrastructure development, strengthening local value chains, and enhanced regulatory engagement to support long-term growth.

He noted that while Nigeria’s economy grew 3.84 percent in Q4 2024, largely driven by the non-oil sector, inflationary pressures and currency depreciation continued to undermine industrial competitiveness. High input costs, multiple taxation, and limited access to foreign exchange constrained business operations.

“The removal of fuel subsidies and the floating of the Naira, though aimed at stabilising the economy, significantly increased energy and import costs, squeezing margins across industries,” Edwin said.

Citing the Central Bank of Nigeria’s Q4 2024 Economic Report, he highlighted that the manufacturing sub-sector grew modestly by 1.79 percent year-on-year, with average capacity utilisation at 61.9 percent. The Naira averaged N1,623.26 to the dollar, reflecting a 2.13 percent depreciation, while headline inflation climbed to 34.8 percent, driven by high energy costs and exchange rate volatility.

Edwin urged the government to ensure that policies like the 15% import tariff on fuel do not disproportionately punish Nigerians, especially manufacturers already facing cost pressures.