Economic Blow: 60% of NE Factories Shut Amid Insecurity
The Manufacturing Association of Nigeria (MAN) has reported that 60% of manufacturing firms in the North-East have ceased operations due to a progressively hostile business climate driven by insecurity.
During a panel discussion at the 13th anniversary lecture in Lagos, Mr. Segun Ajayi-Kadir, the Director General of MAN, announced this finding. The event, titled “Business and Policy Strategy: Examining the Role of Reforms in Enhancing the Ease of Doing Business in Nigeria,” gathered stakeholders to address urgent economic challenges.
Ajayi-Kadir lamented the absence of a strong industrial policy that would foster sustainable development, attract investment, and promote collaboration across sectors. He emphasized that successive governments have undermined the manufacturing sector, failing to recognize its potential as a significant economic contributor.
“Nigeria lacks an industrial policy,” he stated.
“There is an immediate need for a policy that enables industries to collaborate with other sectors and supports international relations. Rather than concentrating on short-term investments, Nigeria should prioritize Foreign Direct Investment (FDI) that facilitates inclusive economic growth and retains value domestically.”
He noted that the neglect of the manufacturing sector has resulted in the closure of numerous industries, leaving many areas, particularly the North-East, economically disadvantaged.
“It has been close to three decades since I joined the association- MAN- and those days had many operational industries. Over the years, we have lost 732 members of the association.”-Ajayi-Kadir Said, “Sixty percent of those found in the North-East went down.”
It’s really very important to reactivate the inactive industries and then create a supportive surrounding for domestic businesses if sustainable foreign investments have to be attracted, Ajayi-Kadir insisted.
“If domestic companies in Nigeria are allowed to thrive and the environment is favorable, investors will be attracted. Foreign enterprises won’t remain when they observe local businesses closing due to insecurity and inadequate infrastructure,” he remarked.
He also cautioned against dependence on temporary investments, labeling them harmful to long-term economic stability.
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