Industrial Disputes Drag Production Down by 0.3 Point in Q3 – MAN

The Manufacturers Association of Nigeria (MAN) says the current production condition declined marginally by 0.3 point in the third quarter.

The association said the decline was largely due to the industrial disputes in the oil and gas sector which “disrupted gas supply, raised energy costs and constrained manufacturing output.”

The Director General of MAN, Segun Ajayi-Kadir said this on Tuesday at the public presentation of reports of Q3 2025 of MAN CEO’s Confidence Index and 2025 MAN Think Tank.

MCCI is the association’s quarterly gauge of the perceptions and expectations of CEOs of manufacturing concerns as well as performance of the manufacturing sector.

It mirrors how prevailing government policies, market dynamics and economic fundamentals shape manufacturing activities and confidence levels.

The DG said the findings of the Q3 2025 MCCI revealed that the Aggregate Index rose modestly by 0.4 points, from 50.3 in Q2 2025 to 50.7 in Q3 2025.

“While the increase may appear marginal, it is significant because it marks the second consecutive quarterly rise, signaling a cautiously improving perception among manufacturers,” he said.

According to him, the breakdown of the indices shows that both the current business condition and current employment condition recorded slight upticks of 0.6 and 0.3 point respectively, reflecting improved confidence driven by the disinflation trend and a more stable exchange rate, which have eased input cost pressures.

“However, the current production condition declined marginally by 0.3 point, largely due to the industrial disputes in the oil and gas sector which disrupted gas supply, raised energy costs and constrained manufacturing output,” the DG said.

He said despite the modest gains, there is a need to emphasize that all current indices remain below the 50-point threshold, indicating that the underlying challenges, particularly high inflation, exchange rates and interest rates, continue to weigh on the sector.

“On a brighter note, the projected indices for the next quarter all remain above 50 points, showing sustained optimism among manufacturers.

“This optimism is buoyed not only by recent policy adjustments, such as the 50-basis point cut in the benchmark interest rate, the suspension of the 4% Free-on-Board levy and the approval of tax incentives for local sourcing of raw materials, but also by strong expectations that the forthcoming National Industrial Policy will be highly private sector-driven,” he said.

He said manufacturers are confident that a policy framework anchored on private sector participation will catalyze industrial competitiveness, stimulate productive investment and open new frontiers for growth.

The DG said further analysis shows that 9 out of 14 industrial zones recorded higher confidence scores, while 10 performed above the 50-point threshold.

This, he said, pointed to “a gradual strengthening of optimism across several manufacturing hubs in the country.”