Economy and Business

Manufacturers Association of Nigeria raises alarm, reveals more foreign companies planning to leave

The recent departure of multinational consumer goods giant Procter & Gamble (P&G) from Nigeria has sparked deep concerns within the Manufacturers Association of Nigeria (MAN), prompting fears of a potential departure from the sector.

Segun Ajayi-Kadir, Director General of MAN, expressed disappointment at P&G’s exit but highlighted that such a move wasn’t entirely unforeseen.

In an appearance on Channels Television’s Sunrise Daily, Ajayi-Kadir attributed P&G’s departure to the formidable challenges prevailing in Nigeria’s arduous operating landscape for manufacturers.

He stressed that successful manufacturing hinges on government efforts to facilitate industrialization by dismantling barriers hindering the sector’s progress, which Nigeria has failed to address adequately, resulting in closures, including P&G’s recent exit.

Drawing attention to the departure of other industry stalwarts like GlaxoSmithKline, Ajayi-Kadir underscored that several manufacturers have silently shut down due to avoidable issues such as inadequate infrastructure, policy inconsistencies, and restricted access to finance.

While lamenting the loss of these major companies, Ajayi-Kadir viewed this as an opportunity to prioritize support for local manufacturers, emphasizing that empowering existing indigenous players will cultivate a more resilient industrial sector.

Highlighting the departure of multinational corporations as a pivotal signal to the government, Ajayi-Kadir advocated for a strategic shift that champions the empowerment of local manufacturers.

He stressed the significance of bolstering struggling local producers, asserting that focusing on indigenous businesses will foster enduring growth within the sector.

Expressing ongoing concerns about Nigeria’s manufacturing future, Ajayi-Kadir urged immediate, decisive government action to avert further exits.

He emphasized the urgent need for governmental intervention to safeguard the sector’s long-term viability, calling for clear, effective measures to ensure the sector’s sustenance and growth.

He said: “I think there is a strong lesson to be learned here. The big ones that are exiting are the multinationals, and this should send a clear signal to the government. We need to be strategic in what we promote.

“If you have a challenged local manufacturer, he is not likely to go anywhere. That is why we are saying that foreign direct investment is excellent, but it should come secondary to empowering the local investor, the existing manufacturers because that is what is enduring.”

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