Policy inconsistency hurting industrial growth, manufacturers warn

Manufacturers have warned that policy uncertainty, overlapping regulations and multiple taxation are raising production costs, disrupting operations and discouraging investment in Nigeria’s industrial sector.

The concerns were raised at the 2026 Chief Executive Officers/Managing Directors Business Luncheon organised by the Ikeja Branch of the Manufacturers Association of Nigeria in Lagos on Tuesday, where industry leaders examined the theme, ‘From Policy to Practice: Navigating Regulatory Friction in Lagos Industrial Ecosystem’.

Chairman of the MAN Ikeja Branch, Thomas Osobu, said manufacturers continued to operate in a difficult business environment marked by multiple regulatory obligations, infrastructure deficits, rising production costs, foreign exchange challenges and implementation gaps in government policies.

According to Osobu, although many government policies are intended to promote economic development, weak implementation often creates unintended obstacles for manufacturers.

He identified multiple taxation and inconsistent government policies as some of the most pressing challenges facing the sector.

“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.

Also speaking, former MAN chairman, Sam Ohuabunwa, described regulatory friction as one of the biggest constraints to industrial growth, noting that manufacturers contend with numerous agencies, levies and inspections that divert attention from productive activities.

According to Ohuabunwa, despite government commitments to improving the ease of doing business, manufacturers still face customs delays, multiple inspections and overlapping regulatory requirements.

He identified the multiplicity of regulatory agencies, discretionary enforcement, frequent policy changes and multiple tax demands as major sources of regulatory friction, noting that they often lead to delays, unexpected costs and operational disruptions.

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“Policy says there is one government, practice says 20 desks,” Ohuabunwa said. He added that regulatory agencies, which should focus primarily on consumer protection and standards enforcement, often increase business costs through overlapping responsibilities and discretionary actions.

Ohuabunwa further warned that policy unpredictability remained a major disincentive to investment, stressing that businesses require a stable and predictable environment to make long-term investment decisions.

“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,” Ohuabunwa said.

He noted that capital naturally flows to destinations where investments are better protected and rewarded, urging Nigeria to create a more attractive business environment to compete for industrial investments.

He also advised manufacturers to strengthen internal compliance systems, improve documentation and engage more actively through industry associations to address regulatory challenges collectively, calling on the organised private sector to sustain engagement with policymakers to drive reforms that support industrial growth.

He noted that Lagos remained the hub of Nigeria’s manufacturing sector, accounting for about 30 per cent of the country’s industrial output.

“If factories in Lagos breathe, Nigeria eats. If factories in Lagos shut down, Nigeria will bleed,” Ohuabunwa said.

Stakeholders at the event also called for stronger collaboration among government, regulators and manufacturers to eliminate regulatory overlaps, improve policy implementation and create a more competitive environment for industrial development.