The Managing Director of Coleman Technical Industries Limited, George Onafowokan, has lamented the high cost of gas supplied to manufacturers despite the company’s investment of more than $20m in gas-powered electricity generation, warning that the pricing regime is undermining industrial growth and job creation.

Speaking in an interview, Onafowokan described the current domestic gas pricing as one of the biggest obstacles facing manufacturers, saying industries that generate their own electricity should not be paying $8.70 per thousand standard cubic feet of gas.

He urged the Federal Government to reduce the price to about $3.50 per thousand standard cubic feet, arguing that cheaper gas would lower production costs, improve competitiveness and stimulate investment.

“Manufacturers that have invested millions of dollars in gas-powered electricity generation should not be paying as much as $8.70 per thousand standard cubic feet of gas. Domestic manufacturers should have access to gas at significantly lower rates, around $3.50 per thousand standard cubic feet, to reduce production costs and improve competitiveness,” Onafowokan said.

He disclosed that Coleman had invested more than $20m in gas-powered electricity generation to sustain production and create jobs but continued to grapple with soaring energy costs.

Onafowokan described the current gas pricing regime as a disincentive to industrial investment, insisting that lower prices would enable manufacturers to expand production, employ more Nigerians and compete more effectively in export markets.

While commending the Federal Government’s reforms in the power sector, particularly the decentralisation of electricity generation and incentives for gas-powered equipment, he maintained that gas pricing remained a major policy gap requiring urgent attention.

Onafowokan called on the Central Bank of Nigeria and the Ministry of Finance to strengthen funding support for development finance institutions, particularly the Bank of Industry, to make affordable credit available to manufacturers and small businesses.

The industrialist argued that manufacturing, agriculture and trade remained the sectors with the greatest capacity to create jobs and should receive targeted policy support if the Federal Government hopes to achieve its ambition of building a $1tn economy.

“The majority of jobs will come from manufacturing, agriculture and trade. Agriculture cannot grow without manufacturing because value addition is what creates wealth and employment,” Onafowokan said.

On monetary policy, he backed the CBN’s decision to retain the Monetary Policy Rate at 26.5 per cent, describing it as the right balance between curbing inflation and maintaining macroeconomic stability.

However, he predicted that the apex bank could begin easing interest rates within the next two meetings of the Monetary Policy Committee.

“In my own opinion, we are still striking the right balance, but I don’t see the current rate being maintained for much longer. By the next two Monetary Policy Committee meetings, I expect to see a gradual reduction, perhaps by 0.25 or 0.5 percentage points,” Onafowokan said.

He stressed that monetary policy alone could not drive economic growth and urged the Federal Government to complement the CBN’s efforts with stronger fiscal support.

“The economy is not controlled by monetary policy alone. Fiscal policy is equally important. We have to give the new team time because economic corrections do not happen overnight,” Onafowokan said.

Looking ahead, Onafowokan said policy consistency and political stability would be crucial to sustaining investor confidence, adding that stronger domestic investment would accelerate Nigeria’s industrialisation and long-term economic growth.

“I am a strong believer in domestic direct investment because it shows local businesses are expanding. If the government maintains policy consistency, I see steady GDP growth and sustained economic expansion,” Onafowokan said.