Manufacturing Crisis in Nigeria's North-East: 60% of Companies Shut Down Due to Insecurity

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Manufacturing Crisis in Nigeria's North-East: 60% of Companies Shut Down Due to Insecurity
EconomicsNigeriaManufacturing

The Manufacturing Association of Nigeria (MAN) reports a dire situation in the North-East region, where 60% of manufacturing companies have been forced to close due to insecurity and a lack of governmental support. The Director General of MAN, Mr. Segun Ajayi-Kadir, highlights the urgent need for a comprehensive industrial policy to promote sustainable growth and attract foreign investment.

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The Manufacturing Association of Nigeria (MAN) has revealed that 60% of manufacturing companies in the North-East region have permanently ceased operations due to an increasingly hostile business environment exacerbated by widespread insecurity. This alarming statistic was disclosed by Mr. Segun Ajayi-Kadir, the Director General of MAN, during a panel discussion at the 13th anniversary lecture held in Lagos.

The lecture, themed “Business and Policy Strategy: Examining the Role of Reforms in Enhancing the Ease of Doing Business in Nigeria”, brought together key stakeholders to address pressing economic issues facing the nation.Ajayi-Kadir strongly criticized the absence of a robust industrial policy aimed at promoting sustainable development, attracting foreign investment, and fostering inter-sectoral collaboration. He argued that the manufacturing sector has been consistently undermined by successive governments, who have failed to recognize its potential as a major economic driver. “Nigeria lacks a comprehensive industrial policy,” he stated. “There is an urgent need for a policy framework that enables industries to engage with other sectors and supports strategic foreign relations. Instead of prioritizing short-term investments, Nigeria must focus on attracting Foreign Direct Investment (FDI) that drives inclusive economic growth and retains value within the country.” He further emphasized that the neglect of the manufacturing sector has resulted in the closure of hundreds of industries, leaving many regions, particularly the North-East, economically vulnerable. “When I joined MAN approximately 30 years ago, there were significantly more industries in operation,” he lamented. “Unfortunately, we have lost 732 members of the association, with a staggering 60% of our members in the North-East shutting down their operations.”Ajayi-Kadir stressed that reviving dormant industries and creating a favorable environment for domestic businesses is essential for attracting sustainable foreign investments. “If we foster the growth of companies in Nigeria and create a conducive environment, investors will be drawn to our market,” he asserted. “Foreign firms are unlikely to remain in a country where they witness local businesses shutting down due to widespread insecurity and inadequate infrastructure.” He also cautioned against relying on fleeting investments, characterizing them as detrimental to long-term economic stability.

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