One of the worst offshoots of Nigeria’s foreign exchange crises was the significant drop in manufacturing activities.

Manufacturers had to contend with prohibitive cost of accessing dollars for raw materials.

This made it impossible for them remain in business. Others who remained were forced to raise the prices of their goods, making them noncompetitive as consumers preferred the more affordable and imported ones.

But going into 2018, industry experts and analysts believe that the manufacturing sector will see improved growth for several reasons including the stability in the foreign exchange market and better policies in the power sector by the government.

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An investment analyst and Managing Director, Afrinvest Securities Limited, Ayodeji Ebo told journalists recently that “most manufacturing companies, due to improvement in foreign exchange supplies, have resumed production and returned to profitability”.

He also said most of them have also adopted backward integration. This, he said, has enabled them to source raw materials locally which has helped their goods to become competitive in the market.

“We feel that as we progress, this sector would improve and as government implements more policies within the power sector as well as in the oil and gas sector, that would also help impact on the performance of the manufacturing sector,” added Ebo while speaking on 2018 economic outlook.

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