The Manufacturers Association of Nigeria (MAN) has sounded an alarm over the increasingly challenging business environment in the country, expressing concerns about the viability of sustaining operations under the current circumstances.
Segun Ajayi-Kadir, the Director-General of MAN, emphasized the severity of the challenges businesses face, raising questions about the feasibility of continuing operations.
Ajayi-Kadir highlighted manufacturers’ unique struggles, particularly in competing with imported products that operate in more favourable environments.
He said the need to contend with foreign goods, often at lower costs, puts additional pressure on local manufacturers, who must meet various obligations such as paying taxes, ensuring employee welfare, and planning for business growth.
One major challenge Ajayi-Kadir outlined is the struggle to secure necessities essential for manufacturing operations.
”This includes reliable access to power, a critical component for industrial activities.
”The erratic power supply in Nigeria has been a long-standing issue, negatively impacting the productivity and competitiveness of local manufacturers.
”Moreover, the scarcity and high cost of raw materials, both imported and locally sourced, add another layer of difficulty for manufacturers.
”Access to affordable and readily available raw materials hampers production processes and contributes to the overall operational challenges,” he stated.
The Director-General also highlighted the importance of a conducive business environment for manufacturers to thrive.
He said: ”While grappling with internal challenges, such as power and raw material shortages, manufacturers simultaneously deal with external pressures, including competition from imported goods.
”The economic difficulties businesses face are not isolated incidents but reflect broader issues within the Nigerian economy.
”The uncertainties surrounding economic policies, infrastructure deficiencies, and a general lack of support for local industries compound the problems manufacturers face.”
He warned that without prompt and effective interventions, the viability of businesses, particularly in the manufacturing sector, may be severely compromised, with potential ramifications for the country’s overall economic health.
