By Chinedu Okafor
The Managing Director of Coleman Technical Industries Limited, George Onafowokan, has expressed confidence that Nigeria’s manufacturing sector will experience sustained growth in 2026, driven by relative macroeconomic stability and government investment in infrastructure.
Onafowokan, who also serves as chairman of the Ogun State Manufacturers Association of Nigeria, highlighted the stabilisation of the naira and a downward trend in inflation as key indicators of a healthier economic environment. He noted that the current growth rate, hovering between 3.4 and 3.9 per cent, provides a strong foundation for manufacturers to expand operations in the coming year.
Reflecting on 2025, Onafowokan described it as a year of recovery, during which the industry regained footing despite significant challenges. He emphasised that stability in the foreign exchange market and easing inflationary pressures have created a more predictable environment for businesses.
“For the manufacturing sector, it’s been a stable year. We are seeing stability in the naira, inflation trending downwards and economic growth heading towards four per cent. That stability is a good thing for manufacturers,” he said.
However, Onafowokan stressed that the full potential of 2026 depends on the Federal Government’s ability to finalise and implement key fiscal policy measures that have remained pending since 2023. He warned that delays in policy execution have already cost the industry valuable growth opportunities.
Currently, Coleman Technical Industries operates at less than 20 per cent of its capacity during an eight-hour shift, a situation Onafowokan attributed to policy gaps, despite strong demand for infrastructure across sub-Saharan Africa.
Looking ahead, he identified the 2026 budget’s emphasis on capital expenditure, infrastructure, and security as the primary drivers of growth. Increased spending on roads, power, and housing, he argued, will unlock new markets and create jobs in sectors such as oil and gas, telecommunications, and fibre optics.
Onafowokan also underscored the importance of security in attracting investment, noting that it protects assets and encourages long-term commitments from both local and international investors.
On the new tax laws set to take effect in January 2026, he urged the government to improve communication to dispel misinformation surrounding the reforms. While commending provisions that offer relief to low-income earners, he cautioned that poor public awareness could lead to market distortions.
He clarified that withholding tax on savings interest remains a final tax and called for intensive public education to prevent panic among investors.
“The government needs to do more to explain the tax laws and their benefits,” he added.
Concluding, Onafowokan expressed optimism that if fiscal policies align with current macroeconomic stability, 2026 could mark a turning point where Nigerians begin to experience the tangible benefits of ongoing reforms.
“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.