Echotitbits – Nigeria News

Tag: Manufacturing

  • Nigeria Faces Deepening Economic Crisis as Currency Gap Widens

    Nigeria Faces Deepening Economic Crisis as Currency Gap Widens

    Figures cited by BusinessDay show that the Nigerian economy is facing renewed pressure as the gap between the official and parallel market exchange rates has widened to over N90. This development marks the most significant divergence in three years, threatening the government’s efforts to achieve exchange rate convergence and stabilize the local currency.

    The widening gap is attributed to a “scramble for FX” by importers and a slowdown in foreign capital inflows. Despite the Central Bank’s recent policy adjustments, liquidity remains tight, forcing many businesses to source dollars at exorbitant rates from the black market. This has directly contributed to the rising cost of imported raw materials and finished goods, further fueling headline inflation.

    Economic experts warn that if the divergence continues, it could lead to another round of official devaluation. The manufacturing sector is particularly hit, with many firms reporting narrowed profit margins and reduced production capacity. The government’s 2026 budget projections, which rely on a stable exchange rate, are now under threat of significant revision.

    Validating data from ThisDay and The Sun confirm the market volatility. ThisDay reported that “the FX scarcity is stalling major infrastructure projects,” while The Sun quoted a financial analyst stating, “the market is reacting to the delay in the anticipated $3 billion emergency loan from international lenders.”

    Echotitbits take: The “Naira-mismatch” is back, and it’s a nightmare for the Central Bank. Watch for a potential hike in interest rates (MPR) in the next MPC meeting as the CBN tries to mop up excess liquidity and attract investors to the fixed-income market.

    Source: Legit.ng – https://www.legit.ng/business-economy/economy/1695884-naira-suffers-decline-forex-market-exchange-gap-widens/, February 10, 2026

    Photo credit: Legit.ng

  • Manufacturing Sector Accesses N68.7 Trillion in Bank Loans

    Manufacturing Sector Accesses N68.7 Trillion in Bank Loans

    New data from the Central Bank of Nigeria (CBN) reveals that manufacturers have accessed a staggering N68.7 trillion in credit facilities over the last nine months. According to The Guardian, this surge in lending is part of a broader effort to stimulate industrial growth and reduce the country’s dependence on imports. The loans are reportedly being utilized for facility upgrades, raw material acquisition, and expansion of production lines across various sub-sectors.

    In an update published by ThisDay, the CBN noted that while credit access has improved, the manufacturing sector still faces significant hurdles, including high interest rates and energy costs. The report highlights that the apex bank is working on further interventions to ensure that the credit results in tangible GDP growth. BusinessDay validated the report, quoting a manufacturer: “While the volume of credit is high, the cost of servicing these loans remains a heavy burden on our margins.”

    Reporting by Tribune indicates that the Manufacturers Association of Nigeria (MAN) has called for more specialized windows for long-term, low-interest funding. A MAN representative stated, “Access to credit is only one half of the equation; we need a stable power supply and better infrastructure to make this capital truly productive.” This highlights the ongoing tension between financial liquidity and the ease of doing business in Nigeria.

    Echotitbits take:

    The massive credit injection into manufacturing is a gamble on the sector’s ability to drive Nigeria’s economic recovery. However, with inflation still a concern, the “high borrowing costs” mentioned by MAN could lead to a cycle of debt if production doesn’t scale rapidly. Watch for the next GDP report to see if this N68.7 trillion translates into a manufacturing-led growth spike.

    Source: The Guardian – https://guardian.ng/news/manufacturers-access-n68-7tr-bank-loans-in-nine-months-says-cbn/, February 9, 2026

    Photo credit: The Guardian

  • NESG Report Links Slow Business Growth to High Taxes and Fuel Costs

    NESG Report Links Slow Business Growth to High Taxes and Fuel Costs

    Reporting by Vanguard indicates that the Nigerian Economic Summit Group (NESG) has identified rising tax burdens and fuel price adjustments as the primary drivers behind a slowdown in business growth during January 2026. According to the latest Business Confidence Monitor (BCM) report, business optimism has hit a six-month low as enterprises struggle with the rising cost of operations.

    The report emphasizes that while the government’s reform agenda is necessary for long-term stability, the immediate impact on small and medium enterprises (SMEs) has been severe. The NESG warns that without targeted interventions to cushion the effects of these fiscal policies, the pace of industrial productivity may continue to decline in the first quarter of the year.

    Validation from Channels TV and The Nation underscores these concerns. Channels TV reports that “the manufacturing sector is feeling the pinch of energy costs,” with a spokesperson for the Manufacturers Association of Nigeria (MAN) stating, “We are operating at the edge of viability due to the triple threat of fuel, power, and taxes.” The Nation also cites the report, quoting an economist who notes, “The government must balance its revenue drive with the survival of the private sector to avoid a stagflation scenario.”

    Echotitbits take: The NESG report is a wake-up call for the fiscal authorities. While tax reforms are essential for reducing the budget deficit, the timing and execution are hitting the productive sector hard. Watch for a potential review of tax incentives or a push for more “pro-growth” adjustments in the coming mid-year budget review.

    Source: BusinessDay – https://businessday.ng/business-economy/article/cost-of-doing-business-rises-to-90-5-in-january-on-tax-reforms-fuel-price-adjustments/?utm_source=auto-read-also&utm_medium=web&amp, February 4, 2026

    Photo credit: BusinessDay

  • Nigeria and Türkiye Partner to Commercialize Scientific Research

    Nigeria and Türkiye Partner to Commercialize Scientific Research

    According to The Punch, high-level discussions between Nigeria and Türkiye have culminated in a new agreement focused on the commercialization of scientific research. The partnership aims to turn laboratory discoveries into viable commercial products, specifically targeting sectors like agriculture, defense, and manufacturing. The initiative is expected to boost Nigeria’s industrial growth by adopting Turkish technological frameworks and manufacturing processes to scale local innovations.

    The agreement includes exchange programs for researchers and the establishment of “innovation hubs” in major Nigerian cities. Officials from both countries noted that the goal is to reduce Nigeria’s reliance on imported finished goods while creating a robust pipeline for “Made in Nigeria” products destined for the international market. This bilateral cooperation is seen as a key component of the federal government’s 2026 economic expansion agenda.

    This development was also highlighted by Leadership and Tribune. Leadership reported that “the partnership will prioritize tech transfer in the defense sector,” while Tribune mentioned that “funding for the first phase of the hubs has already been secured.”

    Echotitbits take:

    Türkiye has become a strategic middle-power partner for Nigeria, especially in tech and defense. This move toward “commercializing research” suggests Nigeria is moving away from purely academic science toward an industrial-military complex model. Watch for the first “Nigeria-Türkiye” joint venture products in the agricultural machinery space.

    Source: The Punch – https://punchng.com/nigeria-advances-research-commercialisation-talks-with-turkiye/, January 31, 2026

    Photo credit: The Punch

  • Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    Nigeria Can Achieve 2026 Economic Targets Through Targeted Tax Reforms

    In an update published by The Nigerian Observer, the Lagos Chamber of Commerce and Industry (LCCI) said Nigeria can meet its 2026 growth targets if the government sustains its reform trajectory. The Chamber emphasized that tax harmonization and the removal of multiple levies on manufacturers are critical for boosting industrial output, competitiveness, and job creation.

    LCCI’s assessment comes amid a broader push for fiscal discipline. The group said recent reforms have been painful but are beginning to attract investor interest. It warned, however, that high costs of doing business—especially energy and logistics—must be addressed so that reform gains are not eroded.

    The Guardian validated the position, quoting an LCCI executive who argued for a tax system that encourages production rather than consumption. ThisDay also reported that business leaders are cautiously optimistic, particularly about the second half of 2026 if policy consistency holds.

    Echotitbits take: LCCI is acting as a constructive critic. Tax harmonization is pivotal because nuisance levies across state and local levels remain a deterrent for SMEs. Reform credibility will be judged by implementation—not press conferences.

    Source: StateHouse— https://statehouse.gov.ng/2026-marks-the-beginning-of-a-more-robust-phase-of-economic-growth/ (2026-01-23)

    Photo Credit: StateHouse

  • Global Trade Shifts: Okonjo-Iweala Urges Nigeria to Court Strategic Investors

    Global Trade Shifts: Okonjo-Iweala Urges Nigeria to Court Strategic Investors

    Global Trade Shifts: Okonjo-Iweala Urges Nigeria to Court Strategic Investors

    WTO Director-General Ngozi Okonjo-Iweala urged Nigeria to aggressively court strategic investors as multinationals diversify supply chains away from China, stressing digital trade and infrastructure as anchors for industrial growth.

    Additional coverage across Nigerian media and stakeholder reactions indicate that the implications of the development will be closely watched in the coming days as policy, security, and market signals evolve.

    Echotitbits take: This highlights a critical pivot from aid-seeking to investment-attraction. Watch for whether the Federal Government introduces new tax incentives specifically for companies exiting the Asian market to set up local manufacturing hubs.

    Source: Vanguard – https://www.vanguardngr.com/2026/01/davos-2026-target-global-investors-to-cut-imports-create-jobs-okonjo-iweala-advises-fg/ (2026-01-22)

    Photo credit: Vanguard

    2026-01-22 09:00:00

     

  • NACCIMA Raises Alarm Over 139 Million Nigerians in Poverty

    NACCIMA Raises Alarm Over 139 Million Nigerians in Poverty

    In an update published by ThisDay, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, said about 139 million Nigerians are living below the poverty line, citing updated World Bank data for 2025/2026. He argued that GDP growth is being undermined by the scale of economic hardship.

    Oye said Nigeria is facing a “dual-inflation” challenge: demand-pull inflation linked to deficit spending, and cost-push inflation tied to high energy and transport costs. He added that higher interest rates may curb liquidity but also squeeze private-sector investment.

    He called for a shift in fiscal policy, urging the government to prioritize manufacturing and agricultural productivity over heavy borrowing, and warned that weak purchasing power will keep pressure on prices and the naira.

    The Guardian and Vanguard also reported related concerns from analysts about the widening gap between market indicators and household conditions.

    Echotitbits take: The 139 million estimate highlights how macro gains can miss the street-level reality. The tension between tighter monetary policy and private-sector calls for cheaper credit could intensify into a major policy debate in 2026.

    Source: BusinessDay – https://businessday.ng/news/article/2026-budget-could-trap-nigeria-in-fiscal-time-loop-despite-gains-from-reforms/ 2026-01-09

    Photo Credit: BusinessDay

  • Nigeria Posts ₦12 Trillion Trade Surplus as Non-Oil Exports Jump

    Nigeria Posts ₦12 Trillion Trade Surplus as Non-Oil Exports Jump

    Data released by Vanguard indicates Nigeria recorded a historic ₦12 trillion trade surplus in 2025, driven in part by a reported 21% rise in non-oil exports.

    Officials attributed the improvement to stronger performance in agriculture, processed solid minerals and select manufactured goods, positioning the outcome as a milestone for diversification.

    The stronger trade position is also expected to ease some FX pressure, though the broader macro outlook still depends on inflation and investment flows.

    **Echotitbits take:** The surplus is encouraging, but the public will measure success by jobs and cheaper goods. Watch for export incentives, port efficiency reforms and logistics upgrades that can keep non-oil growth durable.
    Source: Vanguard — https://www.google.com/amp/s/www.vanguardngr.com/2026/01/nigeria-records-n12trn-trade-surplus-21-non-oil-export-growth-in-h1-2025-trade-ministry/amp/ 2026-01-08

    Photo Credit: Vanguard

  • ICD approves $20m Islamic finance package to expand Jordan’s non-woven fabrics production

    ICD approves $20m Islamic finance package to expand Jordan’s non-woven fabrics production

    ICD approves $20m Islamic finance package to expand Jordan’s non-woven fabrics production

    In an update published via Africa Newsroom, ICD announced a USD 20 million Shariah-compliant medium-term facility to help expand a Jordan-based non-woven fabrics manufacturer with new Spunlace technology.

    The release says the expansion supports products used in hygiene items and healthcare PPE, tying industrial financing to public-health supply resilience and local job creation.

    It’s another example of development finance leaning into “practical manufacturing”—projects that can plug into regional supply chains quickly if demand is stable.

    ICD’s official announcement describes the facility as “USD 20 million” to expand capacity using advanced equipment. ICD’s LinkedIn post similarly frames it around “job creation” and industrial growth.

    Echotitbits take:
    The key risk is demand cycles—PPE and hygiene inputs can be volatile. Watch for offtake agreements, export announcements, and whether the new line secures long-term contracts beyond the initial expansion phase.

    Source: Zawya — January 2, 2026 — https://www.zawya.com/en/press-release/companies-news/uae-headquartered-future-food-foundry-makes-landmark-investment-in-nextgen-farms-and-sustenir-group-jkinjmwo
    Zawya 2026-01-02

    Photo Credit: Zawya

  • Vitafoam Posts Major Profit Rebound as Consumer-Goods Earnings Surge

    Vitafoam Posts Major Profit Rebound as Consumer-Goods Earnings Surge

    2025-12-30 15:30:00

    According to Punch, Vitafoam Nigeria Plc recorded a sharp rebound in full-year performance, reporting net profit of about ₦14.54bn for the year ended September 2025, alongside stronger revenue and operating profit.

    The numbers reflect a consumer-goods firm navigating FX pressures, cost dynamics and price adjustments, with improved operating metrics helping lift the bottom line.

    Investors will watch how the company sustains margins amid inflation and currency volatility, including raw material sourcing and working-capital discipline.

    Premium Times reported profit “leaped more than fifteen times” and referenced a dividend and bonus-share plan. Nairametrics said the company’s pre-tax profit jumped “1,775% year-on-year,” also noting dividend/bonus actions.

    Echotitbits take: The key question is durability—was this driven by demand, pricing power, or a one-off cost/FX swing? Watch quarterly momentum, input-cost trends, and whether consumer spending holds up into Q1 2026.

    Source: The Punch — December 30, 2025 (https://punchng.com/vitafoam-posts-n14-5bn-profit-surge/)

    The Punch 2025-12-30

    Photo Credit: The Punch