The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, sees the recent exit of multinational companies from Nigeria as an opportunity for domestic manufacturers to thrive. He emphasized that with proper government empowerment, the challenges posed by the departure of these multinationals could be transformed into advantages for homegrown manufacturers.
Ajayi-Kadir stated that focusing on and empowering the domestic manufacturing sector would allow Nigerian businesses to fill the gaps left by the departing multinational companies, thereby fostering growth and sustainability in the local economy.
“I think there is a strong lesson to be learned here. 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 the foreign direct investment is excellent but it should come secondary to empowering the local investor, the existing manufacturers, because that is what is enduring,” he stated.
Ajayi-Kadir, while restating concerns about the future of the manufacturing sector in Nigeria, called for clear and decisive action from the government to prevent further exits and ensure the sector’s growth.
“The government should also open new windows for us to source our credit at rates that are not lower and that are not higher than five percent. These are very quick wins that the government can do that can lower the pressure that is upon the manufacturing sector.
“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,” he added.
