Segun Ajayi-Kadir, the Director General of the Manufacturers Association of Nigeria (MAN), expressed disappointment at the departure of multinational consumer goods manufacturer P&G from Nigeria, anticipating that other manufacturers might follow suit.
He highlighted the need for the Federal Government to implement clear and redefined measures to address challenges confronting manufacturers in the country, emphasizing that without such interventions, more exits are likely in the manufacturing sector.
During an appearance on Channels Television’s Sunrise Daily, Ajayi-Kadir stated, “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.”
He emphasized that for Nigeria to thrive as an industrialized nation, the government needs to remove the constraints limiting the performance of the manufacturing sector.
“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,” Ajayi-Kadir said on Channels Television’s Sunrise Daily on Monday.
“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 limits 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 P&G, 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.”
While acknowledging the significance of multinational exits like P&G and GlaxoSmithKline, he underscored that numerous other closures had occurred quietly due to avoidable reasons. Ajayi-Kadir urged the government to view these departures as an opportunity to prioritize local manufacturers over foreign investors for more enduring economic development.
He emphasized the need for a strategic approach in promoting local manufacturers and learning from the exits of major multinational companies.
Ajayi-Kadir stated, “I think there is a strong lesson to be learned there which is the fact that the big ones that are exiting 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.
“So, it is regrettable, it is not totally unexpected, and I think except we take clear redefined measures, many more will happen,” he said.
P&G recently announced its decision to cease production lines in Nigeria and opt for product exportation into the country, following a similar move by GlaxoSmithKline a few months earlier.
Ajayi-Kadir’s remarks serve as a call to action for the government to address systemic challenges and prioritize local manufacturers for sustained economic growth.