MARKET NEWS

BY  Taiwo Hassan

The Managing Director and Chief Executive Officer (CEO) of Coleman Technical Industries Limited, Mr. George Onafowokan, has commended the country’s economic turnaround in just three years of President Bola Tinubu’s administration, praising the Central Bank Governor, Mr. Olayemi Cardoso, as the master architect of the positive changes.

Onafowokan, who disclosed this in an interview with New Telegraph while assessing Nigeria’s economic improvement in Lagos, stated that in just three years, Nigeria had achieved a level of economic stability that many could hardly have imagined a few years ago.

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According to Onafowokan, this transformation can be described as the “Cardoso miracle” aligning various reforms policies that have shaped the country’s economy for good despite the criticism from some section of Nigerians.

He recalled how some Nigerians feared that the country was heading towards a Zimbabwe-like economic crisis, while others maintained faith in the reforms and encouraged people to hold on to the naira.

Today, he argues, “the naira has found its level and is showing signs of appreciation, while Nigeria is increasingly becoming an attractive destination for investment.

“With Treasury Bill yields above 20 per cent, renewed access to international investment indices, greater exchange-rate stability and improved business confidence, industries can now plan investments and make longterm decisions with greater certainty.”

Onafowokan also highlighted growing Foreign Direct Investment (FDI) and renewed growth in the industrial sector, attributing these developments largely to greater stability in Nigeria’s foreign exchange market. The Coleman Wires and Cables CEO said: “Economic stability creates confidence. Confidence attracts investment. And investment drives growth.” In another development, Onafowo

kan also said that while demand in Nigeria’s manufacturing sector has improved, rising input and operating costs continue to put pressure on profit margins for all local manufacturers operating in the country.

Onafowokan, who disclosed this while assessing manufacturing activities in the third quarter of 2026, said the improvement in the Purchasing Managers’ Index (PMI) was a positive indication of increased industrial activity.

He noted that the PMI had risen from 50.6 to 52 for industry, adding that the development showed that manufacturers were buying more and experiencing increased demand.

According to him, however, increased demand and turnover had not automatically translated into improved margins, as manufacturers were still contending with higher operating costs.

“Demand actually has improved. Anybody that says demand has not improved in 2026 as an industry is either inefficient or something is wrong with their actual structure or strategy,” he said.

Onafowokan explained that manufacturers were recording higher volumes of orders but were unable to fully pass increased input costs to consumers, resulting in tighter margins.

He said the situation had made manufacturers focus on increasing production volumes and capacity utilisation to achieve economies of scale and sustain their businesses.

On the reduction of the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, Onafowokan described the development as a “reset” rather than a cut, saying the move would help businesses better project their financing costs.

He said the reduction had already begun to provide some relief, noting that improved liquidity among banks had increased competition and created room for customers to negotiate more favourable lending rates. Onafowokan projected that average interest rates could eventually move to between 18 and 20 per cent, saying such a development would reduce financing costs and ease pressure on businesses.

He also said the stability of the naira had improved business confidence and made it easier for manufacturers to plan investments over longer periods.

According to him, the relative stability of the foreign exchange market had reduced currency-related risks and encouraged new investments into the industrial sector. He said the third quarter of 2026 was, therefore, showing signs of greater stability and growth in the manufacturing sector, although tight margins remained a major concern for businesses.