More giant manufacturers may abandon Nigeria after P&G – MAN
The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has expressed fears that many manufacturing giants may leave Nigeria soon, following the exit of multinational consumer goods manufacturer Procter & Gamble from the country.
Speaking on the recent exodus of some manufacturing giants from the country, he said the country may find it hard to hold on to them until the Federal Government takes clear, redefined measures to address challenges facing manufacturers in Nigeria.
“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 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 clearly avoidable.”
“I think there is a strong lesson to be learnt 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 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.
Recall that the British pharmaceutical giant GlaxoSmithKline (GSK) recently announced plans to end its prescription medicines and vaccines in the country.
The company was incorporated in Nigeria in June 1971 and commenced operation a year after.
It produces products like Panadol, Ribena, Lucozade, Macleans, and Andrews Liver Salt, among others.
