102 Companies Close Shop In Nigeria In 24 Years

Over the past 24 years, a stark decline in the manufacturing sector has been observed across Nigeria, leading to the unfortunate closure of 102 companies in 16 states.

LEADERSHIP reports that the trend highlights manufacturers’ myriad challenges, including inconsistent government policies, inadequate infrastructure, and security concerns.

Experts say the closure of these 102 companies across Nigeria’s 16 states represents a significant loss for the nation’s economy, contributing to unemployment and social unrest.

The challenges faced by these industries are multifaceted, requiring urgent government intervention and strategic planning to foster a more conducive business environment and restore the manufacturing sector.
Nigeria has spent billions on intervention to save the industries through the National Industrial Revolution Plan.

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(NIRP) launched in 2014, the Economic Recovery and Growth Plan (ERGP) introduced in 2017 and the Industrial Development Fund, a programme set up to provide financing for industrial projects.

The states affected by the closure of companies are: Abia – 7, Bauchi – 2, Bayelsa – 1, Borno – 5, Gombe – 4, Kaduna – 5, Kano – 22, Katsina – 2, Kebbi – 5, Kwara – 13, Nasarawa – 6, Niger – 4, Plateau – 3, Rivers – 1, Sokoto – 2 and Zamfara – 20.

Findings on companies that employed over 50 persons before the year 2000 but have now closed shop indicated that in Kaduna State, major closures include Kaduna Textile Limited, Arewa Textile and United Nigeria Textile, all situated in the Kakuri area.

Between 2000 and 2024, Zamfara State witnessed the closure of 20 companies, each employing over 50 workers. Notable casualties include Zamfara Textile Industries Limited, Gusau Oil Mills, and other enterprises concentrated in the Gusau industrial area. The economic landscape has been adversely affected, resulting in significant job losses and community distress. The state has been beset by banditry in the last few years.
Kwara State has also suffered, with 13 companies shutting down, including reputable names like Global Soap and Detergent Industry and Nigeria Paper Mills in Jebba. The closures reflect a broader trend of economic hardship and inadequate support for local industries.

Borno State has been particularly hard-hit, losing five companies largely due to the ongoing Boko Haram insurgency. This insurgency has stifled investment and led to the collapse of firms like Deribe Oil Company. The lack of security has rendered the resuscitation of these businesses nearly impossible.
Kebbi State has seen five significant companies go out of business since 2010, primarily due to economic challenges. Gombe State has lost four companies, including the once-thriving British Cotton Ginnery. Similarly,

Niger State has reported the closure of four companies, emphasising the pervasive nature of the crisis across the region.

Kano State stands out with a staggering 22 companies having shut down operations, particularly in the textile, food, and beverage sectors.

Other states have not been spared either. For instance, Bayelsa State lost one plastic company, while Bauchi, Katsina, Sokoto, Abia, Nasarawa, Plateau, and others have experienced varying degrees of industrial decline.
Significant companies like Jos Steel Rolling Mill and Jos International Breweries have become shadows of their former selves, with little government intervention to revive them.

Experts and workers who spoke to LEADERSHIP attributed the current hardship and lack of jobs to the inability of the companies to survive in Nigeria.
Local textile worker Joseph Kwagh said, “Unless the government wakes up from its slumber, moribund textile industries and other companies will not be revived.”

Vice Chairman of the Kano State Organised Private Sector Union, Hamza Adamu, highlighted the confluence of low business activity, multiple taxation and poor electricity supply as critical factors leading to the closure of industries in Nigeria.

FG Disburses Single-digit Loans To Prevent Industry Collapse

However, in a strategic move to prevent the collapse of industries in Nigeria, the federal government has disbursed loans at single-digit interest rates to the manufacturing sector of the economy and small businesses.
The Bank of Industry (BoI), under the Ministry of Industry, Trade, and Investment, in 2023, disbursed N496.72 billion in loans to 75,809 beneficiaries, marking a 41.5 percent increase in total loans and advances.

These efforts align with President Bola Tinubu’s economic recovery goals, emphasizing the government’s dedication to empowering Nigerian enterprises and promoting sustainable operations.
Also just recently, the government, through the newly-launched N200 billion Presidential Intervention Fund (PIF), designed to provide crucial financial support to micro, small, and medium enterprises (MSMEs), as well as manufacturers nationwide, announced that the fund will allocate N75 billion each to MSMEs and the manufacturing sector.

The loans, repayable in equal monthly instalments over three years with no moratorium, are intended to stimulate economic growth and foster industrial development.
Minister of Industry, Trade, and Investment,

Dr Doris Uzoka-Anite, highlighted that this new phase follows a successful initial rollout, which saw significant support provided to nano businesses. The continuation of this initiative is expected to further strengthen the country’s business environment.

For MSMEs, eligible applicants can secure loans of up to N1 million if they have been operational for at least one year or are registered start-ups. Requirements include business registration documents, bank statements, and personal guarantees. Manufacturers can access loans up to N1 billion, choosing between working capital or asset financing, with specific documentation and repayment terms.