FG Projects 8.10% Growth for Manufacturing, Agriculture Sectors in 2025

Contrary to concerns raised by the Manufacturers Association of Nigeria (MAN) about challenges in accessing foreign exchange (FX), the Federal Government has assured stakeholders of adequate FX supply in the official market. Speaking at the Lagos Chamber of Commerce and Industry (LCCI) “”2025 Economic Review and Outlook Conference,”” Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, projected significant growth for the manufacturing and agricultural sectors in 2025, with expected rates of 8.10% each, compared to their modest 2024 growth rates of 1.9% and 1.4%, respectively.

Dr. Fasua emphasized that the current FX regime, including the integration of Bloomberg FEMS, has brought transparency and sufficiency to FX allocations. He highlighted the administration’s reforms, which have encouraged industries to source raw materials locally, reducing reliance on imports.

At the same event, Professor Biodun Adedipe, an economist and founder of BAA Associates Limited, called for targeted interventions to address food, manufacturing, and energy deficits. He recommended incentives for domestic food processing and other primary manufacturing activities while discouraging the importation of finished goods through higher tariffs. Adedipe also stressed the need to expand arable land, invest in food storage infrastructure, and reduce post-harvest losses to combat food deficits and improve affordability.
Source- This Day Live

Expert Review for Agri-Food Stakeholders
The Federal Government’s clarification on the availability of foreign exchange (FX) and its emphasis on local raw material sourcing offer promising opportunities for Nigeria’s agricultural and manufacturing sectors. Coupled with projected growth rates of 8.10% in 2025, these developments highlight a transformative phase for agribusiness stakeholders. Additionally, expert recommendations on addressing food deficits and fostering primary manufacturing underscore the need for targeted investments and collaborative efforts. Below are key insights for stakeholders to navigate and leverage these opportunities effectively.

1. Opportunities in the FX and Raw Material Landscape
   The government’s clarification on FX availability and its push for local sourcing of raw materials create opportunities for agribusiness stakeholders. The emphasis on sourcing domestically aligns with:
   – Value Chain Development: Agribusinesses can partner with manufacturers to supply locally produced raw materials, such as processed crops or semi-finished agricultural products.
   – Reduced FX Dependency: Local raw material supply chains will mitigate manufacturers’ reliance on FX, fostering resilience in agricultural value chains.
   Stakeholders should identify crops and raw materials in demand by manufacturers and explore partnerships or direct supply agreements.
2. Growth Prospects in Agriculture and Manufacturing: The projected 8.10% growth in agriculture and manufacturing signals an expanding market. For agribusiness stakeholders:
   – Scaling Production: Increased demand for agricultural raw materials presents a growth avenue for crop producers, processors, and distributors.
   – Innovative Collaboration: Partnerships with manufacturers focusing on food technology can drive innovation in processing, packaging, and distribution.
   Stakeholders should prepare for higher production capacity and explore innovative processing technologies to meet anticipated demand.
3. Addressing Food Deficits and Post-Harvest Losses: Adedipe’s call to expand cultivated land and invest in storage infrastructure addresses two pressing challenges:
   – Land Utilization: Expanding farmland will require collaboration between private and public sectors. Stakeholders can advocate for policies that ease access to land for cultivation.
   – Post-Harvest Management: Investments in cold storage, processing facilities, and efficient logistics will enhance food availability and reduce losses.
   Agribusiness stakeholders should leverage public-private partnerships (PPPs) to develop post-harvest solutions, tapping into government and international funding opportunities.
4. Incentives for Domestic Manufacturing: The recommendation to incentivize local manufacturing while discouraging imports of finished goods presents:
   – Market Expansion: Local farmers and processors will benefit from higher demand for inputs required by domestic industries.
   – Policy Advocacy: Agribusiness stakeholders can lobby for reduced tariffs on essential agricultural inputs and machinery to enhance productivity.
   Building alliances with manufacturing groups can strengthen the case for agribusiness-friendly policies.
5. Food Inflation and Structural Reform: Adedipe’s assertion that Nigeria’s food inflation is structural, not monetary, highlights the importance of systemic solutions. For stakeholders:
   – Focus on Infrastructure: Investments in rural infrastructure, such as roads, power, and irrigation, will reduce production and logistics costs, addressing inflation at its roots.
   – Enhancing Value Chains: Improved storage and processing capabilities can stabilize food supplies and pricing, mitigating the effects of seasonal production cycles.
   Engaging with policymakers to prioritize structural reforms in the agricultural sector is essential for long-term stability and growth.

Conclusion
The government’s clarifications on FX sufficiency and reforms in agriculture and manufacturing represent significant opportunities for agribusiness stakeholders. By aligning operations with these initiatives, stakeholders can tap into growth prospects, drive innovation, and contribute to addressing structural challenges in Nigeria’s food system. Proactive engagement with policymakers and manufacturers will be critical in realizing the full potential of these reforms.