60% Of Factories In Northeast Shut Amid Insecurity — MAN

The director-general of the Manufacturers Association of Nigeria (MAN), Dr Segun Ajayi-Kadir, has said about 60 per cent of factories in Nigeria’s Northeast have ceased operations due to persistent insecurity.

Speaking during a meeting with the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Lagos, Ajayi-Kadir blamed insurgency and banditry for disrupted supply chains, higher production costs and the mass relocation of manufacturers.

He stated that approximately 60 per cent of factories in the region have ceased operations due to security concerns.

He explained how these challenges have led many businesses to halt production and left numerous facilities underutilised, thus affecting the overall business climate.

Ajayi-Kadir pointed out that investors are increasingly hesitant to set up or expand operations in the Northeast, primarily due to concerns regarding the safety of their investments and personnel.

“The closure of factories has not only resulted in thousands of job losses but has also exacerbated poverty levels and limited opportunities for residents in the affected areas,” he said.

He urged the federal government and security agencies to enhance their efforts in restoring peace and stability, emphasising that a secure environment is essential for sustainable industrial growth. Improved security conditions would encourage displaced manufacturers to return, attract new investments and revitalise economic activities.

Ajayi-Kadir advocated targeted support measures for affected industries, including enhanced infrastructure, better access to financing and incentives designed to rebuild the region’s industrial capacity.

He expressed optimism that, with improved security and sustained government support, the Northeast could once again become a vital hub for manufacturing and commerce.

He commended President Bola Tinubu for his proactive steps in revitalising the nation’s economy, noting that some of the government’s recent policies are beginning to produce positive outcomes.

However, he acknowledged that challenges remain, particularly due to the disruptions caused by economic saboteurs, which have hindered many Nigerians from reaping the full benefits of these reforms.

Ajayi-Kadir emphasised the importance of embracing industrialisation as a strategy to reduce dependence on foreign goods and strengthen the national economy.

He also recognised the Dangote Refinery’s significant contribution to the economy, particularly in alleviating pressure on domestic petroleum prices amid ongoing tensions in the Gulf region.

Reaffirming MAN’s commitment to advocating for its members and addressing challenges in the manufacturing sector, Ajayi-Kadir recognised the media as a vital partner in national development and pledged ongoing support for CICAN in its professional endeavours.