The difficulties in obtaining foreign exchange (FX) have pushed manufacturers into sourcing their raw materials locally in the first half of 2024 (H1’24), a report by the Manufacturers Association of Nigeria (MAN) has revealed.
The report of a survey of the manufacturing sector by MAN for H1’24 noted that manufacturers are increasingly turning to locally produced raw materials to mitigate import problems occasioned by FX scarcity.
MAN attributed the shift to the growing difficulties faced by manufacturers in obtaining foreign currency, which is pushing companies to explore options for local sourcing of raw materials.
It, however, noted that the changes have not been consistent across all subsectors.
For instance, the production of non-metallic mineral products, as well as textiles, clothing and footwear, saw a decline in local supply depending more on imported raw materials, highlighting the challenges of reducing import dependence.
“The manufacturing sector’s local raw material sourcing improved slightly to 56.03 percent in H1 2024, up from 55.4 percent in H1 2023.”
