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More manufacturers’ exit after P&G likely, MAN warns

 The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has predicted the exit of more manufacturers from the country following the exit of Procter & Gamble (P&G).

The MAN boss, who rued the recent decision of P&G, revealed that many others are likely to follow suit if the Nigerian Government doesn't address the challenges confronting manufacturers in the country.

Ajayi-Kadir, who was on Channels Television’s Sunrise Daily on Monday, observed by The Nation, expressed sadness over the development, and called for proactive steps to remove bottlenecks in the sector's performance and sustainability.

He said: "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.

“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 limit 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 Procter and Gamble, 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 avoidable."

The MAN DG, however, stated that government should learn from the multinationals' departure from the country, noting that it presents a chance to support domestic producers more than international investors because they are more resilient and likely to remain against all odds.

“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.

“Though it is regrettable, it is not unexpected, and I think unless we take clear redefined measures, many more will happen," he added.