Chijioke Iremeka
Members of the Food, Beverage, and Tobacco sector within the Manufacturers Association of Nigeria have urged local manufacturers to commit to upholding quality at all stages of production.
They said this dedication to excellence is vital for preserving brand loyalty and achieving consistent growth in profitability.
The directive was issued during the recent Annual General Meeting of the Food, Beverage, and Tobacco Sector within the Manufacturers Association of Nigeria when they convened in Lagos.
Inaugurating the AGM, the Director General/Chief Executive Officer of MAN, Mr. Segun Ajayi-Kadir, emphasised the crucial need for manufacturers to prioritise quality, standards, and innovation in their production processes to maintain relevance and meet consumer expectations.
He underscored the importance of collaboration among manufacturers to collectively drive a more substantial impact on the Nigerian economy.
Ajayi-Kadir lamented the rise in electricity tariffs, citing its negative effect on an already challenged operating environment.
The MAN DG said, “Local manufacturers have shown remarkable resilience in the face of daunting macroeconomic and infrastructure challenges, particularly concerning power.
“However, manufacturers require access to electricity at a reasonable cost. Power constitutes approximately 40 per cent of our expenses, varying depending on the level of power intensity in the manufacturing process.”
Addressing the theme, ‘Cultivating Value: Employing Quality, Standards, and Innovation in Strengthening Food, Beverage, and Tobacco Manufacturing,’ the Guest Speaker and Head of Corporate Affairs & Sustainability at Rite Foods, Mr. Ekuma Eze, highlighted the significant role played by the Food, Beverage, and Tobacco Sector within Nigeria’s manufacturing landscape.
He noted that this sector accounted for 34 per cent of the entire manufacturing sector and contributed approximately five per cent to the GDP in 2022.
Eze pointed out that despite its pivotal role, the manufacturing industry in Nigeria faces significant challenges that hinder its competitiveness, stressing that structural and systemic obstacles have impeded the growth of manufacturing and its overall contribution to the economy.
He added, “While the Food, Beverage, and Tobacco manufacturing sector holds the title as the largest sub-sector within manufacturing, it still falls short of global competitiveness.
“Locally, manufacturers face formidable challenges, including inadequate infrastructure, high inflation rates, energy shortages, forex instability, regulatory unpredictability, security concerns, and hefty tax burdens, all of which have significantly hampered the profitability of this sector in recent times.”
He advocated for targeted government interventions to bolster the sub-sector’s competitiveness, especially in light of the African Continental Free Trade Area.
“Our policies must actively promote manufacturing as a linchpin of economic progress. Manufacturing ought to serve as a primary driver of economic expansion, job creation, income generation, and GDP contribution,” he added.
Also speaking, Deputy Director at the National Agency for Food and Drug Administration and Control, Dr Aina Olugbenga Steven, commended local manufacturers for their ongoing efforts in addressing challenges such as electricity tariffs and foreign exchange fluctuations within “Nigeria’s volatile, uncertain, complex, and ambiguous business environment.”
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