The Food, Beverage, and Tobacco sector of the Manufacturers Association of Nigeria is urging local manufacturers to prioritize consistent quality control during production, emphasizing that this commitment to excellence is crucial for building brand loyalty and sustaining long-term profitability.
This message was delivered at the recent Annual General Meeting of the Food, Beverage, and Tobacco Sector within the Manufacturers Association of Nigeria, which took place in Lagos. At the commencement of the AGM, Mr. Segun Ajayi-Kadir, the Director General/CEO of MAN, stressed the importance of manufacturers focusing on quality, standards, and innovation in their production processes to stay competitive and meet consumer demands.
He also emphasized the need for collaboration among manufacturers to have a more significant positive impact on the Nigerian economy. Additionally, Ajayi-Kadir expressed concerns about the increasing electricity tariffs.
The MAN DG stated, “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.”
Ekuma Eze, Head of Corporate Affairs & Sustainability at Rite Foods, delivered a speech on “Cultivating Value” in the food, beverage, and tobacco manufacturing sector, emphasizing its importance in Nigeria’s industrial landscape.
He revealed that this sector accounts for 34% of the manufacturing industry and 5% of the country’s GDP. Despite its significance, Eze highlighted the industry’s struggles with competitiveness due to structural and systemic barriers, which hinder its growth and economic impact.
He urged the industry to prioritize quality, standards, and innovation to overcome these challenges and maximize its contribution to the economy.
He noted, “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 urged the government to implement targeted support measures to enhance the competitiveness of the food, beverage, and tobacco manufacturing sub-sector, particularly in the context of the African Continental Free Trade Area (AfCFTA), to enable the industry to thrive in the face of increased regional competition.
“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.
Further 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.”
