Investment made by manufacturers fell from N552 billion in 2018 to N217.22 billion in 2021, signifying a 60.7 per cent decline over the period.
“This is a reflection of the kind of issues facing the manufacturers in Nigeria. There is multiplicity of taxes. One agency demands one form of tax and another demands another form of it,” said Professor of International Economics at Covenant University, Jonathan Aremu, in a chat. He said more than ever before, manufacturers were facing issues ranging from high cost of production to issues of competitiveness, saying that the multiplier effects of decreased investment on jobs in the economy would be better imagined.
Nigerian manufacturers are facing a number of issues that worsen their cost of production. The energy cost is huge due to low energy supply to industrial zones by electricity distribution companies. Many manufacturers have abandoned DisCos and are using 100 per cent of gas to power their factories.