Northern Industries On Life Support As States Crawl To Oil

Amidst general challenges in national industrial development, including technological and infrastructure deficits and lack of capital, industries in the northern region have faced inconsistent policies, sustainable maintenance, power and transportation problems, among others, leading to the collapse of many factories in the face of heavy dependence on oil and federal revenue.

Our correspondents undertook an overview of the state of factories in the northern states. The outcome of their investigation is astounding.

KWARA

The moribund privately-owned companies in Kwara State include Global Soap and Detergent Industry, Ilorin; Nefraday Farms Nigeria Limited; Okin Biscuits Nigeria Limited; Ijagbo Noble Breweries Nigeria Limited, Ijagbo; and PANAT Feeds Nigeria Limited.

The moribund state-owned companies include Tate and Lyle Nigeria Limited, Ilorin; Kwara Textile Limited; Kwara Commercial Metal and Chemical Industry; Erin-Ile Paper Converter, Erin-Ile; and Matches Manufacturing Company, Ilorin.

The defunct federal companies in the state are Nigeria Paper Mill, Jebba; Nigeria Sugar Company, Bacita; and Nigeria Yeast and Alcohol Manufacturing Company, Bacita.

LEADERSHIP Sunday gathered that some state-owned companies had already wound up before Nigeria’s current democratic dispensation in 1999.

It was further gathered that some private companies were liquidated due to unfriendly government policies, a harsh economic environment, epileptic power supply, an influx of substandard products, high inflation, foreign exchange volatility, and poor succession planning.

However, some new companies have since been established by both the state government and private entrepreneurs—and are reportedly thriving.

The new companies established by the Kwara State government include the Ilorin Innovation Hub, the Garment Factory, and the Sugar Film Studio Factory.

Thriving private companies in the state include KAM Holdings Ltd (a steel manufacturer), Tuyil Pharmaceutical, Ilorin, Dangote Flour Mills, Forgo Battery Company, Ilorin, Peace Standard Pharmaceutical Industry, Bioraj Pharmacy, and Rajrab Pharmacy.

The State Commissioner for Business, Innovation, and Technology, Mrs. Damilola Adelodun-Yusuf, noted that private companies are thriving due to the implementation of Governor AbdulRahman AbdulRazaq’s administration’s ease of doing business policy.

She stated that the government will continue to implement policies that promote industrial growth in the state.

The immediate past president of KWACCIMA, Oluronke Adeyemi (SAN), said the chamber will continue to engage relevant authorities to boost industrial revolution and enhance the state’s economic growth.

She said, “For years, challenges are many and we recognise that government cannot respond to everything within a year or two, but we have been ensuring that government is continuously working on these challenges so that with time, some of these issues bedevilling industrialists will be a thing of the past.”

GOMBE: Defunct Industrial Factories Still in Ruins

Several major factories in Gombe State—including the British Cotton Ginnery (BCGA), BATA Shoes, PZ Depot, and Manto Processing Company—have shut down or remain non-functional, contributing to widespread job losses and economic stagnation.

Once a major employer, the British Cotton Ginnery (BCGA) in Gombe town has completely ceased operations, leaving behind a community still named after the company.

Among the factories that collapsed is the Manto Processing Company in Kumo, Yamaltu Deba LGA, which was commissioned to produce mango juice and tomato paste but never operated a single day. Despite being inaugurated by former President Olusegun Obasanjo, the facility has remained dormant, with successive administrations showing little commitment to reviving it.

Other defunct companies include PZ Depot, BATA Shoes Company, and Onigbinde Stores in Gombe Town.

These firms once contributed significantly to local commerce and employment but were driven out by high operational costs, market shifts, and poor infrastructure.
Residents like Jafaru Abdullahi, a Gombe-based octogenarian, blame governance failures and political apathy.

“There are thousands of unemployed youths who could be employed, and it seems like the government is not willing to revive these kinds of factories that I believe would bring development to the state,” he said.
LEADERSHIP Sunday investigations revealed that several factories suffered from unreliable electricity, lack of technical manpower, and dependence on founding leadership. The government’s failure to provide a clear industrial policy further compounded the decline.

Nonetheless, some revival efforts are underway. The Premier Seed Processing Factory at Muhammadu Buhari Industrial Park was commissioned in 2025, offering services in seed treatment and packaging. Additionally, the Al-Yuma Fertilizer Plant in Kwadon has created direct jobs and supports the state’s agricultural goals.

Efforts to reach the Gombe State Commissioner for Trade, Industry, and Tourism, Nasir Mohammed, for comment were unsuccessful as of press time.

SOKOTO

The remnants of two factories—Sokoto Furniture Factory and Zaki Bottling Company—remind residents of Sokoto State’s once-thriving business environment.

The Sokoto Furniture Factory, owned by the state government, and Zaki Bottling Company, owned by the late Alhaji Shehu Malami, were major employers until the early ’90s, when their fortunes began to decline.
While the Furniture Factory was known for quality furniture production, Zaki Bottling Company was a leading soft drink producer in the state and beyond.

The collapse of the Furniture Factory has been attributed to corruption and mismanagement, while the demise of Zaki Bottling Company was reportedly due to infighting between the late Sultan of Sokoto, His Eminence Alhaji Ibrahim Dasuki, and the company’s owner.

To date, no effort has been made to revive the two factories.

Meanwhile, emerging businesses in the state are predominantly small-scale pure water factories with limited prospects.

KANO

In Kano, African Textile Manufacturer (ATM) collapsed in 2023 due to high production costs and bankruptcy.

Chairman of the National Union of Textile, Garment and Tailoring Workers of Nigeria (ATM branch), Comrade John Obeikwu, said the company started operations in 1998 with about 3,500 staff.

The company, owned by K. Akar, produced 100% cotton wrappers but folded due to soaring raw material costs, high electricity tariffs, and stiff competition from Chinese imports.

Obeikwu noted that by 2004, the company’s staff strength had dropped to about 300. It was eventually sold to a new owner who promised to revive it but has yet to commence operations.

The president of the Kano Chambers of Commerce, Industry, Mines and Agriculture (KACCIMA), Usman Darma, highlighted inadequate power supply as a major challenge, stating that electricity tariffs in Kano are higher compared to states like Lagos and Ogun.

He also lamented the high interest rates from commercial banks and the difficulty in accessing funds from public institutions.

While urging the government to create a more enabling environment for industry—especially in northern Nigeria—Darma stated that the chamber is committed to completing the CNG and AKK projects before the end of the year.

“When that is achieved, more power will be generated and distributed to factories at Sharada, Bompai, and Challawa, among other areas in the state, to improve production capacity and encourage new industries,” he said.

NASARAWA

In Nasarawa State, several private and state-owned industries have folded due to an unfavorable business climate.

Key defunct private companies include Delta Prospectors Limited, with an ultramodern processing plant on Jos Road, Lafia. Established in 1995 to supply barytes to oil and gas companies, it only operated for five years.

Another company, Oil Chem Nigeria Limited, located on Makurdi Road, Lafia, provided drilling and fluid engineering services but shut down seven years after launching in 2001.

Defunct state-owned companies include the Fertiliser Blending Plants in Lafia and Keffi, the Nasarawa Beef Factory in Masaka, the Nasara Sacks Factory in Akwanga (established in 2002), and the Nas Spring Water Company in Lafia (established in 2001).

Some of these firms were leased for 7 to 10 years in an attempt to stay afloat. However, Nasara Sacks collapsed despite this effort.

More recently, several new companies have been established, especially since 2019. These include Olam Nigeria Ltd, Avatar New Energy Materials Company Limited, and Ganfeng Lithium Mining Company. Major players such as Dangote Sugar Refinery, Azama Nigeria Ltd, and Flour Mills Nigeria have also established a presence.

Efforts to reach the Commissioner for Commerce, Trade, Industry, and Investment, Mohammed Otto, were unsuccessful.

However, a top official in the ministry cited poor management, high electricity tariffs, and lack of forex access as major issues. He also highlighted:

“The Nigerian mentality of preferring foreign goods to locally-made products, illegal importation of foreign goods through our borders, and multiple taxation, among others.”

KOGI: Ajaokuta Steel Company: Moribund for Over Four Decades

The Ajaokuta Steel Company in Kogi State has been moribund for over four decades. Despite repeated promises by successive governments, revival remains elusive.

Stakeholders stress that reviving Ajaokuta remains critical to Nigeria’s economic reinvigoration, arguing that its non-completion is a disservice to the nation.

Established in 1979 under the then Ministry of Power and Steel, the company was envisioned to produce millions of tonnes of steel annually. The plant, spanning 800 hectares, was to be completed in three phases: Phase 1: 1.3 million tonnes/year; Phase 2: 2.6 million tonnes/year and Phase 3: 5.2 million tonnes/year

Despite construction beginning in 1980 and reaching 98% completion by 1996, the project has stalled since the departure of the USSR’s M/s TPE.

Nigeria’s annual steel consumption is valued at $3.3 billion, underscoring the project’s importance.
A former union leader, Otori Salihu, blamed the plant’s collapse on international conspiracy and unpatriotic Nigerians:

“We’re glad to see a great departure with the handling of the steel plant by President Ahmed Bola Tinubu.”

An old staffer, Musa Idris, added: “Aside from President Shehu Shagari, every administration paid lip service to the Ajaokuta dream. Look at the unemployment. Youths walk aimlessly because there’s no work.”

Hon. Sanni Egidi Abdulraheem, Member representing Ajaokuta Federal Constituency, emphasized:

“A functional Ajaokuta Steel Company will support rail infrastructure, technology transfer, capacity building, job creation, income distribution, and conservation of foreign reserves.”
“I call on the President and our dear Minister not to be distracted by enemies of the country who want Nigeria to remain a dumping ground for foreign steel.”

ZAMFARA

In Zamfara State, no fewer than ten industries have been reported to have partially or completely collapsed, while about 7,000 people lost their jobs as a result.
SUNDAY Leadership findings revealed that the collapse of these industries may be linked to the second Democratic Dispensation in 1999.

It was also gathered that Zamfara Textile Industries alone, which employed approximately 4,000 workers, partially collapsed in 2003 and later sacked about 95 percent of their workers in 2004 to sustain operations.

Other industries such as the ginneries and factories that had contributed to the recruitment of thousands of people have all collapsed, resulting in massive unemployment in Gusau and other local government areas of the state.

According to investigations, when these factories were functional before their collapse, they employed between 300 to 1,000 workers, depending on their capacity.
It was further gathered that the collapse of some factories was due to lack of full electricity power, apart from some whose owners joined politics and became politicians.

LEADERSHIP Sunday gathered that the collapse of these industries, which led to the loss of manpower through mass sackings, has also negatively affected the state’s economy, causing a loss of revenue generation.

Since the collapse of these factories, some of which had existed for 30 to even 50 years, the state has been unable to produce anything similar—except for one named HAMSTORE Integrated Company Limited, which employs about 150 people.

The company is owned by Hamisu Isah and is situated along Jaurin Rogo in Gusau local government area of the state.

The following are the available collapsed industries and companies from Zamfara State: Zamfara Textile Industries Limited, owned jointly by Chinese investors in collaboration with the State Government, located in the Gusau Industrial Area; Gusau Oil Mills, owned by General Aliyu Gusau, also situated in the Gusau Industrial Area; Gusau Tanning Company Limited, owned by Alhaji Garba Dakin Gari, located in the same industrial zone; Muhammadiyya Metal and Construction Company Limited, owned by Alhaji Mainasara Mai Gidaje, similarly in Gusau Industrial Area; Gusau Sweet Factory Limited, owned by Ambassador Yuguda Gusau; Gusau Ginnery Company, owned by Dogon Koli Magami, alongside another Gusau Ginnery Company owned by Ibrahim Mallaha, both located in the Gusau Industrial Area; Mayanchi Ginnery Company, owned by Alhaji Danfulani Mai Doya, located along Sokoto Road in Mayanchi; Sahabi Liman Kaura Ginnery Company, owned by Alhaji Sahabi Liman Kaura in Gusau Industrial Area; and ISMA Ginnery Limited.

Efforts by LEADERSHIP Sunday to meet with the Labour Union leader in Zamfara State, Comrade Sani Halliru, as well as the State Commissioner of Commerce and Industries, failed as calls were either unanswered or their phones were unreachable.

KADUNA
In Kaduna State, the once booming center for about 13 textile industries has seen them all closed, throwing thousands of workers into the streets.
Among the moribund industries are Kaduna Textile Limited (KTL), Arewa Textile, Nortex, Fintex, United Nigerian Textiles Limited (UNTL), among others.
On the other hand, the functional industries in Kaduna, although not new, include Olam Feeds and Hatchery, Indomie Noodles, Eurofoam, Mouka Foam, and others.

PLATEAU

For Jos International Brewery (JIB), successive administrations have signed more than three MoUs with both local and foreign partners to resuscitate the moribund government-owned company, but none has come to fruition.

Jos International Breweries PLC (JIB) is the former producer of Rock and Class Lager beer. It has been lying comatose for a very long time. The company also produced Royal Malt, a soft drink popular especially among people in North Central, North East, and parts of Kaduna State.
Recall that JIB was established in 1975 by the Joseph Gomwalk administration, with BARC farm as a subsidiary.

During its operation, the brewery sourced most of its raw materials from BARC farm, generating massive revenue and leading to the establishment of subsidiary companies such as Pioneer Milling Company.
BARC farm was sold to a private farmer over 20 years ago and once employed more than 4,000 workers through direct and indirect means.

However, years of mismanagement, neglect, and outright plunder have reduced it to ruins.
Presently, the premises of Jos International Breweries (JIB) were used by the State Government last year to store palliatives. At the time of a visit by our correspondent, no one was seen within the company compound.

BARC farm was once a beacon of mechanized farming, livestock production, and agro-processing.
In 2025, BARC Farms is witnessing a rebirth under the transformative leadership of Governor Caleb Mutfwang.

On March 29, the Plateau State Government, in collaboration with the Plateau Youth Council (PYC) and other youth organizations, inspected the dilapidated farm structures.

Governor Caleb Mutfwang, in a groundbreaking move, handed over 3,400 hectares of BARC Farms to Plateau youths, providing them with a rare opportunity to cultivate the land and earn a living.
This initiative comes with an unprecedented N1 billion (One Billion Naira only) support package from the government to cover all farming expenses, including seedlings, inputs, extension services, security, accommodation, and food, among others.

North Not Poor

A lawmaker representing Kiru/Bebeji Federal Constituency of Kano in the House of Representatives, Abdulmumin Jibrin, recently declared that northern Nigeria is richer than the southern part of the country.
Jibrin, however, noted that the region has failed to maximise its vast human and natural resources due to internal divisions and poor leadership.

He argued that the North possesses greater economic potential than the South, citing its population, fertile agricultural land, and abundant mineral deposits.

“Believe me, the North is richer than the southern part of Nigeria. The only thing is that we’ve not had a situation where we maximized our potential. We have the population, we have the fertile land for agriculture, we have all the mineral resources you can ever think of.

“In the southern part of the country you are talking about, only oil and gas; there is no mineral that you think about that we do not have in the North,” he said.
Jibrin lamented that instead of harnessing these resources, the northern elite often undermine themselves publicly, leaving the region politically and economically weakened.

The lawmaker urged the North to look inward and embrace unity, stressing that only then can it fully unlock its economic strength and political influence in Nigeria.

Expert Blames Oil for Negligence

Meanwhile, tax expert Gabriel Olawuyi has attributed states’ negligence of developmental projects to their dependence on oil and money coming from the federation account.

For example, he said that the 36 states of the federation received a total of N4,103,463,895,991.12 (four trillion, one hundred three billion, four hundred sixty-three million, eight hundred ninety-five thousand, nine hundred ninety-one naira and twelve kobo) from the federation account in the first half of 2025, covering January to June.

This amount excludes internally generated revenue (IGR) and funds from local and international donor agencies.

“For doing almost nothing, see what they come to Abuja to share… That’s why many governors don’t care about industries in their states,” he said.

Official documents obtained by LEADERSHIP Sunday show that in January 2025, all states shared N611,974,517,167.65 billion. The allocation increased to N718,980,039,823.78 billion in February, then slightly dropped to N698,237,745,901.35 billion in March. It further reduced to N663,059,048,511.21 in April but rose again to N709,294,748,209.63 in May before declining slightly to N701,917,796,377.50 billion in June.

In the first six months of the year, investigations by LEADERSHIP Sunday showed that Kano State got N130,561,884,996.12 billion; Kaduna, N102,313,144,368.08 billion; Katsina, N98,001,661,450.71 billion; and Borno, N90,751,737,876.57 billion.

Others like Bauchi received N91,302,654,057.23 billion; Jigawa and Niger got N89,666,582,459.19 billion and N88,133,126,665.33 billion respectively; Sokoto received N84,612,635,197.25 billion; Plateau, N80,135,662,640.41 billion; Kogi, N82,804,029,930.78 billion; Benue, N88,267,832,061.80 billion; and Kebbi, N79,954,097,659.22 billion.

Adamawa got N79,142,291,194.68; Zamfara, N77,988,854,173.47 billion; Yobe, N74,541,528,297.59 billion; Kwara, N73,329,996,963.66 billion; Gombe, N72,422,887,970.03 billion; Taraba, N72,543,126,509.53 billion; and Nasarawa, N70,015,932,583.01 billion in the first half of 2025.