Manufacturers across Africa have raised concerns over escalating energy costs, warning that continued pressure on production expenses could weaken industrial output and trigger widespread economic consequences.

The Secretary of the Pan-African Manufacturers Association, Segun Ajayi-Kadir, said the situation is becoming increasingly critical as most industries depend heavily on petroleum products for electricity generation, logistics, and packaging materials.

He noted that the surge in energy prices has significantly increased production costs, leading to higher prices of industrial goods and weakening consumer demand.

According to him, if the trend continues, consumers may eventually reach a limit where they can no longer afford goods, leaving manufacturers with unsold inventory and exposing some industries to collapse.

Ajayi-Kadir explained that disruptions in global shipping routes have further worsened the situation by increasing import costs and delaying the delivery of raw materials, machinery, and intermediate goods needed for production.

He also highlighted the link between rising global oil prices and currency depreciation, noting that higher crude oil prices increase demand for the U.S. dollar, weakening African currencies and further raising import costs.

He warned that the ongoing instability could also affect the agricultural value chain, particularly through disruptions in fertilizer supply, which would increase food production costs and strain agro-processing industries.

“Sustained constraints in fertilizer availability are likely to increase agricultural production costs and reduce the supply of raw materials for food processing industries across the continent,” he said.

Ajayi-Kadir called on African governments to prioritise industrial resilience by developing domestic refineries and strategic oil reserves to reduce exposure to external shocks.

He stressed the need for stronger backward integration, regional manufacturing networks, and improved local value chains to reduce dependence on imported inputs.

He also urged governments and private sector stakeholders to invest more in renewable energy, gas infrastructure, and regional power integration to ensure stable and affordable energy for industries.

In addition, he recommended expanding local production of fertilizers, petrochemicals, steel, and industrial chemicals to reduce vulnerability to global supply disruptions.

Ajayi-Kadir further emphasised the importance of improving transport infrastructure, including ports and logistics systems, to reduce trade costs and enhance competitiveness.

He concluded by urging stronger patronage of locally made products, saying this would help stabilise industrial production amid global economic pressures.

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The Federal Government, through the Ministry of Housing and Urban Development, is taking giant steps to establish a Building Materials Hub aimed at slashing construction costs and driving the delivery of affordable mass housing across Nigeria.

As part of this process, the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, will be visiting the Lekki Free Trade Zone tomorrow, Thursday, August 28, 2025.

The visit is expected to provide firsthand insights into the opportunities available within the zone, which is being reviewed as one of the possible locations for the hub.

According to Festus Adebayo, Executive Director of the Housing Development Advocacy Network (HDAN), the group will be accompanying the Minister during the visit as part of its ongoing advocacy for lower building material costs and wider access to affordable housing.

Also joining the delegation is Mr. Niyi Akinlusi, Managing Director of Lekki Worldwide Investments Limited, who will host the team and provide updates on developments within the zone.

The Ministry’s plan for a Building Materials Hub is aimed at tackling rising construction costs, encouraging local manufacturing, and making housing delivery more sustainable.

The initiative involves establishing manufacturing hubs in six locations across its geo-political zones: Sagamu (South West), Aba (South East), Warri/Asaba (South South), Ajaokuta (North Central), Kano (North West), and Gombe (North East). These hubs will focus on producing materials like roofing sheets, ceilings, tiles, and doors, with plans to attract investors to fund and manage the projects.

While the visit to Lekki is exploratory, officials say the project when eventually sited will be designed to attract investment, reduce import costs, create jobs, stimulate economic growth, and strengthen the housing and construction sector under the Renewed Hope Agenda.

By: Prince Folorunsho Adegoke
News Editor at Housing TV Africa

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Minister of State for Industry, Trade, and Investment, Senator John Owan Enoh, gave this assurance during his tour of key industrial locations in the South-West.

Government’s Plan to Revive the Manufacturing Sector
During visits to industries in Lagos and Ogun states, including Sunflag Nigeria Limited, GB Foods Nigeria, Friesland Campina WAMCO, and Mikano Industries, Enoh acknowledged the decline in the textile industry and its negative impact on productivity and job creation.

To address these issues, he announced plans for a Cotton Textile Garments (CTG) stakeholder session and the creation of an Industrial Revolution Work Group (IRWG), which will include representatives from various sectors, including the Manufacturers Association of Nigeria (MAN).

“I have the immediate mandate to promote Made-in-Nigeria goods and services,” Enoh stated. “This government, led by President Tinubu, is committed to providing the necessary support to manufacturers.”

Ease of Doing Business and Industrial Growth
Enoh emphasized that the government has introduced various incentives to improve the business environment and encourage local manufacturers.

“We commend these companies for their resilience despite economic challenges,” he said. “Our goal is to ease the difficulties businesses face and create an enabling environment for industrial expansion.”

He highlighted that the IRWG would act as a think tank and liaison between industries and the government, working to identify and solve key industrial challenges.

Ogun State’s Push for Industrial Expansion
While in Ogun State, Enoh met with Governor Dapo Abiodun, who shared plans for West Africa’s largest cotton and apparel industry, set to employ 40,000 people within the Special Processing Zone.

Abiodun also pointed to Morocco’s success in attracting investors and producing aircraft parts, suggesting that Nigeria could benefit from similar collaborations.

In response, Enoh acknowledged Ogun State’s role as Nigeria’s leading industrial hub and praised its efforts in supporting industrial growth.

“While we acknowledge the constraints industries face, Nigeria’s economic potential remains enormous. By working with the private sector, we can drive the industrial revolution needed for national development,” he concluded.

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Industrial Tour Highlights Government Dedication
During the Southwest leg of a nationwide Industrial Tour, Enoh visited select industries in Lagos and Ogun States, emphasizing the government’s dedication to fostering industrial growth.

Support for Local Industries to Unlock Economic Potential
Speaking at the Coleman Factory in Sagamu, Ogun State, Enoh underscored the necessity of increased government involvement in supporting local industries. He detailed ongoing efforts to finalize policies aimed at protecting and promoting domestic manufacturers.

Drawing a parallel to the ‘America First’ policy of former U.S. President Donald Trump, Enoh stressed that Nigeria must prioritize its industries to fully harness its economic potential.

“We must do everything to support companies like Coleman. Their reputation for quality and efficiency is well established, and the government will continue to encourage collaboration with the industry to drive economic development,” he stated.

Stakeholders Express Optimism Over Government Initiatives
George Onafowokan, Managing Director/CEO of Coleman Wires and Cables, responded positively to the minister’s comments, expressing optimism about the future of the industry under the current administration.

“For us, it is about focusing on supportive collaboration rather than obstacles. With the minister advocating for the industry, we believe positive changes, such as fiscal policies benefiting manufacturers and sector protections, are on the horizon. This government has given us renewed hope,” Onafowokan said.

Commitment to Strengthening Local Manufacturing
Enoh reassured industry stakeholders of the government’s commitment to fostering an enabling environment for industrial growth, job creation, and economic sustainability.

“If the industry does not grow, Nigeria will not thrive. The President has demonstrated strong leadership in this area, and we will continue to support and partner with industry players like Coleman,” he added.

He further highlighted the government’s determination to strengthen local manufacturing, reduce dependence on imports, and promote ‘Made in Nigeria’ goods as competitive in the global market.

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