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Nigeria’s manufacturing sector experienced relative stability in 2025, supported by improved macroeconomic conditions. However, sustained growth will primarily depend on the timely implementation of long-awaited fiscal reforms starting in 2026, according to Mr. George Onafowokan, Managing Director and Chief Executive Officer of Coleman Technical Industries Limited.
In an interview where he reviewed business conditions for the past year and offered insights for the near future, Onafowokan noted that manufacturers benefited from the relative stability of the naira, easing inflationary pressures, and steady economic growth.
These factors provided a measure of predictability for operators in an otherwise challenging operating environment.
“For the manufacturing sector, it’s been a stable year. We are seeing stability in the naira, inflation trending downwards and economic growth of about 3.4 to 3.9 per cent, heading towards four per cent. That stability is a good thing for manufacturers,” he said.
Despite these improvements, the Coleman boss cautioned that many manufacturers are yet to fully enjoy the gains of macroeconomic stability due to delays in the implementation of critical fiscal policy measures.
According to him, several fiscal policy recommendations proposed as far back as 2023 are yet to be signed into law, resulting in missed opportunities in both 2024 and 2025.
“One key issue is the fiscal policy measures which have not been signed till now. We’ve missed 2024 and 2025, and we are hoping that by 2026, the government will sign off on these fiscal policy recommendations. This will impact manufacturers in terms of tariffs and help boost capacity utilisation and industry growth,” he explained.
Reflecting on the performance of Coleman Technical Industries Limited, a leading manufacturer of wires and cables, Onafowokan said the company recorded stability in 2025, a landmark year in which it marked its 50th anniversary. He added that the company’s long-term outlook remains positive, given its scale, experience and capacity to serve not only Nigeria but the wider sub-Saharan African market.
“Our future prospects are quite high. Coleman is capable of servicing not only Nigeria but the entire sub-Saharan region from Nigeria, provided the enabling policies are in place,” he said.
However, he revealed that the company is currently operating far below its installed capacity, running at less than 20 per cent of an eight-hour shift, despite strong demand for infrastructure development across the country. He attributed this gap largely to policy constraints and operating challenges faced by manufacturers.
Looking ahead to 2026, a pre-election year, Onafowokan expressed cautious optimism, pointing to positive signals from the 2026 budget, particularly the planned increase in capital expenditure, continued exchange rate stability and the possibility of easing interest rates.
“We see a positive outlook for growth. There is growing domestic investment, renewed foreign direct investment, infrastructure development and opportunities in sectors like oil and gas, telecoms and fibre optics. These developments could make 2026 a catalyst year for sustained strategic growth,” he said.
On the implementation of new tax laws scheduled to commence in January 2026, the Coleman chief identified misinformation as the biggest concern for businesses and investors, urging government to intensify public education on the reforms.
“There is more misinformation than correct information. Government needs to do more to explain the tax laws and their benefits,” he said, while acknowledging provisions in the reforms that offer relief to low-income earners.
He warned that poor communication and abrupt enforcement without adequate transition could distort markets, recalling how misinformation recently contributed to significant losses in the stock market. He also clarified that withholding tax on savings interest remains a final tax, dismissing fears of double taxation.
Onafowokan welcomed the Federal Government’s emphasis on security and infrastructure in the 2026 budget, describing both as critical enablers of investment and economic expansion.
“Security is key to investment and growth. Infrastructure spending—on roads, housing, power, hospitals and education—is a catalyst for development. It opens up new markets, creates jobs and drives economic expansion across regions,” he said.
Concluding, the manufacturing executive extended seasonal goodwill to Nigerians and expressed hope that 2026 would mark the turning point when the benefits of ongoing reforms become more evident.
“Our prayer is that 2026 will be the year our hope is realised, when Nigerians begin to truly see the benefits of these reforms,” he said.
Kehinde Akinseinde-Jayeoba
