The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, expressed regret over the departure of multinational consumer goods manufacturer, Procter & Gamble, from Nigeria.
He emphasized that without decisive measures from the Federal Government to address the challenges faced by manufacturers, more exits within the manufacturing sector are likely.
Ajayi-Kadir, in a press statement on Monday, acknowledged the sadness surrounding P&G’s exit but noted that it was not entirely unexpected.
He stressed that the business environment in Nigeria poses significant challenges for manufacturers, and until the government implements clear and strategic measures to alleviate these constraints, further exits can be anticipated.
In his statement, Ajayi-Kadir highlighted the importance of manufacturing as a strategic choice for any economy.
He urged the government to make a commitment to industrialization, emphasizing that necessary steps should be taken to remove impediments hindering the sector’s performance.
He pointed out that Nigeria’s failure to address these constraints has resulted in closures, with notable companies like Procter & Gamble and GlaxoSmithKline being affected.
While acknowledging the prominence of multinational exits like P&G and GlaxoSmithKline, Ajayi-Kadir emphasized that numerous other closures have occurred quietly due to avoidable reasons.
He underscored the need for the government to learn from these exits and prioritize support for local manufacturers over foreign investors for long-term sustainability.
Ajayi-Kadir explained that the departure of multinationals should serve as a lesson, encouraging the government to adopt a strategic approach in promoting the manufacturing sector.
He argued that although foreign direct investment is beneficial, empowering local investors and existing manufacturers should take precedence for enduring success.
Ajayi-Kadir reiterated that the regrettable exits, including P&G’s recent decision to cease production in Nigeria, highlight the necessity for the government to implement well-defined measures to prevent further departures and foster the growth of the manufacturing sector.