The Manufacturing Association of Nigeria (MAN) has disclosed that 60% of manufacturing companies in the North-East have shut down operations due to an increasingly hostile business environment fueled by insecurity.
The Director General of MAN, Mr. Segun Ajayi-Kadir, made this revelation during a panel discussion at the 13th anniversary lecture in Lagos. Themed “Business and Policy Strategy: Examining the Role of Reforms in Enhancing the Ease of Doing Business in Nigeria”, the event brought stakeholders together to discuss pressing economic issues.
Ajayi-Kadir decried the lack of a robust industrial policy to promote sustainable development, attract investment, and encourage inter-sectoral collaboration.
He stressed that the manufacturing sector has been undermined by successive governments, which, according to him, failed to see it as a viable economic driver.
“Nigeria does not have an industrial policy,” he said.
“There is an urgent need for a policy that allows industries to engage with other sectors and supports foreign relations. Instead of promoting short-term investments, Nigeria must focus on Foreign Direct Investment (FDI) that boosts inclusive economic growth and retains value within the country.”
He added that the neglect of the sector has led to the closure of hundreds of industries, leaving many regions, especially the North-East, economically vulnerable.
“When I joined MAN about 30 years ago, there were more industries in operation. Sadly, we have lost 732 members of the association, with 60% of our members in the North-East shutting down.”
Ajayi-Kadir argued that reviving dormant industries and creating a conducive environment for domestic businesses is key to attracting sustainable foreign investments.
“If you make companies in Nigeria thrive and the environment favorable, investors will come. Foreign firms won’t stay when they see local businesses shutting down due to insecurity and poor infrastructure,” he said.
He also warned against relying on transient investments, describing them as detrimental to long-term economic stability.
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