Firms cushion inflation as business climate bites – Coleman MD

Nigeria’s business environment remains challenging, with manufacturers increasingly absorbing inflationary pressures through reduced profit margins and improved efficiency, the Managing Director and Chief Executive Officer of Coleman Technical Industries Limited, George Onafowokan, has said.

Speaking during an interview reviewing the economy in the first quarter of 2026, Onafowokan expressed cautious optimism that the economy is showing early signs of recovery despite persistent headwinds.

“The business environment remains tough, but some of the pressures, particularly inflation, are often absorbed by companies through reduced profit margins and improved operational efficiency,” he said.

Onafowokan stressed that scale remains critical for survival in key sectors, especially in the beveOKrage industry, where operators must invest heavily to compete.

“If you look at the beverage industry, both non-alcoholic and alcoholic, it is a volume game. You cannot come into that market as a small player and do well. You need to be a volume player, and that means you must invest massively,” he explained.

The industrialist noted that recent large-scale investments in the sector indicate sustained investor confidence in Nigeria’s long-term prospects despite current economic constraints.

On fiscal policies, the Coleman MD acknowledged that some government measures have created discomfort for manufacturers but urged stakeholders to assess reforms based on their overall impact.

“You cannot have total wins. What you do is ask yourself how many wins you got. If it is a majority, you take it. If it is a minority, you complain. In policy, not everybody will be satisfied,” he said.

Onafowokan added that while policies such as the sugar tax have drawn opposition, they reflect global efforts to address rising health concerns, urging a gradual implementation to protect local industries and jobs.

He also commended the Federal Government’s zero-duty policy on electric vehicles, describing it as forward-looking.

“Greater competition among importers and new market entrants will eventually bring down prices for Nigerian consumers,” he said.

Onafowokan expressed confidence that macroeconomic indicators, including interest rates and foreign exchange management, are improving, adding that reforms such as subsidy removal and forex adjustments, though painful, were necessary.

“We are now starting to see the benefit. We will keep tracking it, and hopefully, more Nigerians will begin to feel those benefits going forward,” he added.