The Manufacturers Association of Nigeria says more firms would shut down operations if the federal government failed to address the challenges such organisations face in the country.
Director General of MAN, Segun Ajayi-Kadir, disclosed this on Monday while reacting to the planned exit of Procter & Gamble (P&G) from Nigeria in an interview on Channels Television.
He attributed it to the numerous challenges manufacturers face in the country’s difficult operating environment.
“We received the news with sadness but it was not unexpected.
“Manufacturing in any economy is a strategic choice and the government must decide if it wants the country to be industrialised. If so, it must take all necessary steps to remove the binding constraints that hinder the sector’s performance. Nigeria has not done so, so we see closures.”
Ajayi-Kadir stressed that the exit of P&G is just the latest in a string of manufacturers leaving the country. He noted the need for the government to take immediate action to address issues like poor infrastructure, inconsistent policies, and limited access to finance.
“Gamble, it’s news because it’s GlaxoSmithKline; it’s news because they have been in the country for a very long time,” he said. “But several others have quietly closed down, and the reasons are avoidable.”
While expressing regret over the departure of the large companies, Ajayi-Kadir said it was an opportunity to focus on promoting local manufacturers. He believes empowering existing manufacturers will result in a more sustainable and enduring industrial sector.
“I think there is a strong lesson to be learned here,” he said. “The big ones leaving are the multinationals, which should send a clear signal to the government. We need to be strategic in what we promote. He is unlikely to go anywhere if you have a challenged local manufacturer. That is why we say foreign direct investment is excellent, but it should come secondary to empowering the local investor, the existing manufacturers because that is what is enduring.”
The MAN DG reiterated his concern about the future of the manufacturing sector in Nigeria.
He urged for clear and decisive action from the government to prevent further exits and ensure the sector’s long-term success.
DAILY POST reports that nearly 5,000 jobs are threatened as P&G plans its exit from Nigeria.
