The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has contended that the recent exit of some multinational companies from Nigeria offers a golden opportunity for homegrown manufacturers to thrive in the country with proper government empowerment.
Ajayi-Kadir noted in a media chat that the apparent setbacks 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.
He stated: “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 foreign direct investment is excellent, but it should come secondary to empowering the local investor, the existing manufacturers, because that is what is enduring.”
Reiterating concerns about the future of the manufacturing sector in Nigeria, the MAN DG 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.
Meanwhile, findings have shown that most multinationals that are exiting Nigeria, mostly American and European companies, are being taken over by Asian companies.
Magnus Onyibe, a public policy analyst, said the exit of the foreign firms is not bad for the country as being portrayed, noting that many of the departing companies are already being replaced.
He observed that a pattern has been gradually developing over time without the system noticing.
“And guess what foreign companies have been stepping in to fill the void left by American and European companies? Asian companies. These include both Chinese and Indian corporations. Even Singaporean and Lebanese firms have presence in the list,” Onyibe stated.
Turkish firm, Hayat Kimya’s premium diaper brand, Molfix, is taking the void left by P&G’s withdrawal. Tolaram Group, a Singaporean firm, acquired Diageo’s stake in Guinness Nigeria. A group of Nigerian investors, Renaissance Group had purchased Shell’s onshore holdings when the oil giant decided to restrict its activities to the offshore market. EnjoyCorp Limited bought Heineken’s majority stake in Champion Breweries
Discover more from starmich blog
Subscribe to get the latest posts sent to your email.
