Exit of multinationals, opportunity for homegrown industries to thrive – MAN

The Director General of the Manufacturers Association of Nigeria, MAN, has described the recent exit of some multinational companies from Nigeria as an opportunity for domestic manufacturers to flourish in the country with proper government empowerment.

The Director-General of the association, Segun Ajayi-Kadir, who made this statement said the glitches suffered due to the exit of the multinationals could be turned into an opportunity by placing the spotlight on homegrown manufacturers by the government empowering the domestic manufacturing sector.

“I think there is a strong lesson to be learned here. The big ones leaving are the multinationals, which should send a clear signal to the government.

“We need to be strategic in what we promote. He is unlikely to go anywhere if you have a challenged local manufacturer. That is why we say the foreign direct investment is excellent but it should come secondary to empowering the local investor, the existing manufacturers, because that is what is enduring,” he stated.

Ajayi-Kadir, while restating concerns about the future of the manufacturing sector in Nigeria, called for clear and decisive action from the government to prevent further exits and ensure the sector’s growth.

“The government should also open new windows for us to source our credit at rates that are not lower and that are not higher than five per cent. These are very quick wins that the government can do that can lower the pressure that is upon the manufacturing sector.

“Manufacturing in any economy is a strategic choice and the government must decide if it wants the country to be industrialised. If so, it must take all necessary steps to remove the binding constraints that hinder the sector’s performance. Nigeria has not done so, so we see closures,” he added.