Skyrocketing unemployment rate as 102 companies shutdown in Nigeria

In the past 24 years, Nigeria's manufacturing sector has experienced a significant downturn, resulting in the closure of 102 companies across 16 states.

According to a report, this trend underscores the numerous challenges faced by manufacturers, such as erratic government policies, poor infrastructure, and security issues.

Nigeria's manufacturing sector faces crisis as 102 companies shut Down in 24 years
Source: UGC

The closure of companies has impacted various states, reflecting 7 in Abia, 2 in Bauchi, 1 in Bayelsa, 5 in Borno, 4 in Gombe, 5 in Kaduna, and 22 in Kano.

While 2 companies closed in Katsina, Kebbi recorded 5, Kwara with 13, Nasarawa with 6, Niger with 4, Plateau with 3, Rivers with 1, Sokoto with 2, and Zamfara with 20.

Research on companies that employed over 50 people before 2000 but have since shut down reveals significant closures in Kaduna State.

Notable closures in the Kakuri area include Kaduna Textile Limited, Arewa Textile, and United Nigeria Textile.

From 2000 to 2024, Zamfara State experienced the closure of 20 companies, each employing over 50 workers.

Prominent among these were Zamfara Textile Industries Limited and Gusau Oil Mills, all located in the Gusau industrial area.

Kwara State has also been affected, with 13 companies ceasing operations, including well-known entities like Global Soap and Detergent Industry and Nigeria Paper Mills in Jebba.

Borno State has been particularly affected, with five companies shutting down mainly due to the ongoing Boko Haram insurgency.

This conflict has hindered investment and led to the collapse of businesses like Deribe Oil Company. The prevailing insecurity has made it nearly impossible to revive these enterprises.

Since 2010, Kebbi State has seen the closure of five major companies, primarily due to economic difficulties.

Gombe State has also lost four companies, including the once-thriving British Cotton Ginnery.

Similarly, Niger State has reported the shutdown of four companies, underscoring the widespread nature of the crisis in the region.

Kano State has been notably impacted, with 22 companies ceasing operations, particularly in the textile, food, and beverage industries.

Other states have also suffered. Bayelsa State, for example, lost a plastic company, while Bauchi, Katsina, Sokoto, Abia, Nasarawa, and Plateau, among others, have faced various levels of industrial decline.

Prominent companies such as Jos Steel Rolling Mill and Jos International Breweries have significantly deteriorated, with minimal government efforts to rejuvenate them.

These shutdowns highlight a broader pattern of economic difficulty and insufficient support for local industries.

The closures have severely impacted the economic landscape, leading to considerable job losses and social instability.

Source: Legit.ng