Manufacturing Needs Long-term Investors, Not Just Traders – Operator

The managing director and chief executive officer of Coleman Technical Industries Limited, George Onafowokan, has urged Nigerians to embrace manufacturing as a long-term investment rather than focusing primarily on trading, saying the shift is critical to building a stronger industrial base and driving sustainable economic growth. Onafowokan said experienced manufacturers also have a responsibility to mentor younger entrepreneurs to cultivate a new generation of industrialists capable of transforming Nigeria into Africa’s manufacturing hub. Speaking on the sector’s outlook, he stressed that developing a resilient manufacturing industry requires patience, policy consistency, and sustained investment. He noted that while the impact of ongoing economic reforms is still unfolding, Nigeria is making gradual progress towards economic stability and industrial expansion. According to him, countries such as China spent decades building their manufacturing capacity before emerging as global industrial leaders, adding that Nigeria is on a similar path despite existing challenges. “We may not be there yet, but the progress is evident. The economy is becoming more stable, investor confidence is on the rise, and manufacturing is positioned as Nigeria’s avenue for long-term, sustainable growth,” he said. The Coleman CEO called on the federal government to sustain its fiscal and monetary reforms to provide long-term policy certainty for investors, expressing confidence that the country’s economic direction would remain stable despite concerns over the 2027 election cycle. He commended key government initiatives, including the removal of the fuel subsidy, foreign exchange harmonisation and the operationalisation of the Dangote Refinery, saying the measures have strengthened the economy against recent global shocks. According to him, the reforms have contributed to improved foreign reserves, now exceeding $50 billion, while helping Nigeria avoid the severe fuel shortages experienced in some other countries and restoring investor confidence in manufacturing. Onafowokan also highlighted the growing industrial activities in Ogun State, noting that the Manufacturers Association of Nigeria (MAN), Ogun State Chapter, records between 10 and 15 new functional manufacturing companies every 1 to 2 months. He, however, stressed the need for stronger support for indigenous manufacturers, noting that access to affordable financing remains one of the biggest challenges facing local industries. While foreign manufacturers can obtain loans at interest rates of between two and six per cent, he said Nigerian manufacturers often contend with borrowing costs of about 26.5 per cent, making it difficult to compete effectively. Although he acknowledged the Bank of Industry’s efforts to provide relatively cheaper financing, he called for more patient, low-cost capital to accelerate indigenous industrialisation. Looking ahead to the second half of 2026, Onafowokan said the manufacturing sector is showing cautious signs of recovery despite lingering challenges. He explained that while macroeconomic improvements initially raised expectations for stronger growth, recent geopolitical tensions involving the United States, Israel and Iran disrupted the momentum by driving up crude oil prices and shipping costs. According to him, the cost of transporting a 40-foot container from Asia to Africa rose from about $3,000 to $6,000-$7,000 during the crisis, thereby increasing production costs for manufacturers. Despite these headwinds, he maintained that Nigeria’s manufacturing sector remains well-positioned for long-term growth if policy reforms are sustained, financing becomes more affordable, and more Nigerians embrace manufacturing as a long-term investment rather than focusing solely on trading.