Policy inconsistency hurting industrial growth, manufacturers warn

Nigerian manufacturers are raising alarms over persistent policy uncertainty, a complex web of overlapping regulations, and burdensome multiple taxation, which they state are escalating production costs and disrupting operations. These challenges are collectively discouraging vital investment in the nation's industrial sector.

Industry leaders voiced these concerns at the 2026 Chief Executive Officers/Managing Directors Business Luncheon hosted by the Manufacturers Association of Nigeria (MAN) Ikeja Branch in Lagos. The event focused on 'From Policy to Practice: Navigating Regulatory Friction in Lagos Industrial Ecosystem.' Thomas Osobu, Chairman of MAN's Ikeja Branch, described the operating environment as difficult, citing infrastructure deficits, rising costs, foreign exchange challenges, and significant gaps in policy implementation.

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Most manufacturers are struggling to survive. A lot have left the system and are no longer doing what they are supposed to do in their manufacturing setup. Most employers are not able to pay the right wage.

Osobu noted that while many government policies aim to foster economic development, their weak execution often creates unintended obstacles. He identified inconsistent government policies and multiple taxation as particularly pressing issues, stating that many manufacturers are struggling to survive, with some leaving the sector and others unable to provide adequate wages. "Most manufacturers are struggling to survive. A lot have left the system and are no longer doing what they are supposed to do in their manufacturing setup. Most employers are not able to pay the right wage," Osobu said.

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Policy says there is one government, practice says 20 desks.

Former MAN chairman, Sam Ohuabunwa, echoed these sentiments, labeling regulatory friction as a major constraint on industrial growth. He explained that manufacturers contend with numerous agencies, levies, and inspections that divert focus from productive activities. Despite government efforts to improve the ease of doing business, Ohuabunwa highlighted ongoing issues like customs delays, repeated inspections, and overlapping regulatory requirements. He pointed to the sheer number of regulatory agencies, discretionary enforcement, frequent policy changes, and multiple tax demands as key sources of friction, leading to delays, unexpected costs, and operational disruptions.

Ohuabunwa illustrated the problem with the statement, "Policy says there is one government, practice says 20 desks." He warned that policy unpredictability is a significant disincentive for investment, as businesses require a stable and predictable environment for long-term planning. "There are about 20 regulators, one factory. They come every day or every other day and sometimes without notice. That uncertainty creates difficulty for people to invest their money because investors want to go where there is predictability," he stated.

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There are about 20 regulators, one factory. They come every day or every other day and sometimes without notice. That uncertainty creates difficulty for people to invest their money because investors want to go where there is predictability.