MAN to FG: Mandate government contractors to prioritise local content, punish noncompliance

The Manufacturers Association of Nigeria (MAN) has called for the mandatory use of local products by government agencies.

Francis Meshioye, the MAN president, spoke on Thursday at the 40th annual general meeting (AGM) of the association’s Ogun state branch, in Abeokuta, recommending penalties for government contractors who flout the local content.

Meshioye said the ‘Nigeria First’ policy must be strictly enforced across all arms and levels of government through the mandatory patronage of locally made goods and services.

The MAN executive said all uniformed agencies should source their vehicles, uniforms, shoes, and other materials from Nigerian companies.

“Government contractors must be obliged to prioritise local content, and there must be penalties for non-compliance,” he said.

“We are actively working with the minister of state for industry through the Industrial Revolution Working Group to see through these reforms.

“We must restore confidence to the manufacturing space.

“We also urge the Ogun state government to domesticate the policy and ensure that all ministries, departments, and agencies in the state prioritise made-in-Nigeria goods in procurement and contracting.”

Meshioye also demanded the immediate clearance of the $2.4 billion foreign exchange (FX) forwards owed to manufacturers, lamenting that companies are “bleeding” from double interest payments.

‘HIGH INTEREST RATES MAKING LOAN REPAYMENT BURDENSOME’

George Onafowokan, chairman of MAN in Ogun state, urged the federal government to introduce reforms that will support the growth and development of local industries in the country.

Onafowokan expressed concern over the declining contribution of the manufacturing sector to Nigeria’s gross domestic product (GDP), which he said fell from 16.04 percent in the fourth quarter of 2023 to 12.68 percent by mid-2024.

He attributed the decline to inflation, FX scarcity, high lending rates, and burdensome regulatory policies.

The chairman said statistics showed that Nigeria’s overall GDP grew by 3.4 percent in 2024, driven mainly by the service and industry sectors, which includes manufacturing.

Onafowokan said despite the harsh environment, members continue to operate and contribute meaningfully to the economy.

“Members have remained steadfast, keeping factories running, paying workers, and contributing to Ogun state’s revenue base and Nigeria’s GDP,” the chairman said.

“Despite these challenges, Ogun manufacturers continue to operate and invest in the economy.”

He said illegal levies imposed by local governments, arbitrary fines from regulatory bodies, and intimidation by government agencies and security operatives are some of the challenges confronting manufacturers in Ogun.

The state MAN chairman also lamented the high cost of credit, citing the 27.5 percent monetary policy rate (MPR) as of May 2025.

He said such rates make loan repayment burdensome and erodes profit margins.

Onafowokan, urged manufacturers to explore alternative funding channels such as the Bank of Industry (BoI), LECON Finance Company, and Agusto & Co., to access affordable funds for operations and expansion.

In his remarks, Dapo Abiodun, governor of Ogun, commended manufacturers for their resilience and contributions to economic growth.

The governor, represented by Adebola Sofela, commissioner for industry, trade, and investment, reaffirmed the state government’s commitment to enhancing the business climate by streamlining taxes and investing in infrastructure development.