Rising Insecurity Drives Over Half Of North-East Manufacturers To Closure, Reports MAN

The Manufacturers Association of Nigeria (MAN) has revealed that the prevalent insecurity in the country has led to the closure of 60% of its members’ businesses in the troubled North-Eastern region of Nigeria.

Segun Ajayi-Kadir, the Director-General of MAN, disclosed this during an interview on Channels Television’s Sunrise Daily on Tuesday. He emphasized that manufacturers in the region are allocating more funds towards security measures to safeguard their assets than they are paying in taxes to government authorities.

“Insecurity poses a significant challenge. We have seen a loss of between 56 to 60 percent of our members in the North-East due to insecurity, resulting in the cessation of production,” Ajayi-Kadir stated. “The insecurity serves as a deterrent to manufacturing activities.”

He further highlighted the financial strain on manufacturers, noting that security expenses, coupled with the escalating costs of energy, contribute to the overall production costs, consequently leading to higher prices of goods in the country.

While acknowledging that power isn’t provided free of charge, Ajayi-Kadir emphasized the importance of engaging stakeholders, including manufacturers and the Nigerian Electricity Regulatory Commission (NERC), before implementing any increases in electricity tariffs.

Expressing opposition to arbitrary hikes in electricity tariffs, Ajayi-Kadir emphasized that the exorbitant cost of power supply has been a major hindrance to many manufacturers across the nation.

In addition, he commented on the challenging business environment, stressing that it not only affects businesses but also individuals.

Ajayi-Kadir underscored the need for the government, under President Bola Tinubu’s administration, to collaborate with stakeholders to address the challenges posed by its economic reforms and policies.

“We must continue to collaborate with the government to tackle these issues and engage in constructive dialogues regarding government policies,” Ajayi-Kadir remarked. “We cannot afford a one-sided relationship. In an economy where the private sector plays a significant role, there must be synergy between the private and public sectors to ensure progress and the overall well-being of the populace.

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