Manufacturers Association of Nigeria (MAN) director-general Segun Ajayi-Kadir has predicted the exit of more manufacturers of goods and services from Nigeria , if the government fails to remove limiting conditions.
Mr. Ajayi-Kadir who was on Channels TV talkshow Sunrise Monday, spoke against the background of Procter & Gamble, a consumer goods manufacturer leaving Nigeria. He submitted that there are numerous challenges facing manufacturers and the government needs to address the issue.
“Obviously, we received it (P&G exit) with sadness but it is not totally unexpected and more may happen because there is no doubt that we operate in an environment that is challenged,” said Mr. Ajayi-Kadir
“Manufacturing in any economy is a strategic choice, the government has to make up its mind whether it wants its country to be an industrialised one.
“Once that decision is taken, you have to do all that is needed to remove the binding constraints that limit the performance of that sector, Nigeria has not done so and that is why you can see there are closures.
“I think it is news because it is Procter and Gamble, it is news because it is GlaxoSmithKline, it is news because they have been in the country for a very long time, but there are several others that have died quietly and for reasons that are clearly avoidable.”
Ajayi-Kadir, however, said that the exit of multinationals from the country should serve as a lesson to the government, adding that it provides an opportunity to promote local manufacturers more than foreign investors, as that is more enduring.
“I think there is a strong lesson to be learnt there which is the fact that the big ones that are leaving are those multinationals and I think this will send a clear signal to the government that regrettable as it is, it should guide future actions, we need to be strategic in what we promote.
“So, what this means is that 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, it has led to phenomenal improvement in the performance of the manufacturing sector for so many economies but it should come secondary to empowering the local investor, the existing manufacturers because that is what is enduring.
