Gom Mirian
The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has expressed regret over the exit of multinational consumer goods manufacturer, Procter & Gamble (P&G), from Nigeria.
He, however, warned that more manufacturers would follow suit if the government does not take decisive action to address the challenges faced by the manufacturing sector.
“It is regrettable, it is not unexpected, and I think except we take clear redefined measures, many more will happen,” he stated.
Ajayi-Kadir, who was speaking during an interview on Channels Television’s Sunrise Daily, also highlighted the need for the government to prioritise industrialisation and implement measures to remove the constraints faced by manufacturers.
He explained that manufacturing is a strategic choice for any economy, and Nigeria must decide if it wants to be an industrialised nation.
“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 they are several others that have died quietly and for reasons that are clearly avoidable,” he stated.
He emphasised that these closures could have been avoided with the right support from the government, adding that they should view the exit of multinationals as a lesson and an opportunity to prioritise local manufacturers over foreign investors.
He argued that supporting local manufacturers is more enduring and will contribute to the long-term growth of the manufacturing sector. He admitted that foreign direct investment is valuable, but empowering existing local investors should be the primary focus.
Ajayi-Kadir stressed, “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,” he added.
