Key points
- Sector faces widening skills gap amid growing reliance on casual labour
- Rising energy costs, poor infrastructure driving layoffs and reduced productivity
- Union warns automation could deepen job losses without reskilling efforts
Main story
The Chemical and Non-Metallic Senior Staff Association of Nigeria (CANMPSSAN) has raised concerns over a growing shortage of skilled workers in the industrial sector, warning that increasing casualisation of labour is undermining job security and workforce stability.
Speaking on the challenges confronting the sector, CANMPSSAN President, Segun David, said mounting economic pressures are forcing companies to adopt cost-cutting measures that disproportionately affect workers.
“When businesses are under pressure, they cut costs and unfortunately, workers bear the brunt,” he said.
David noted that escalating operational costs—driven by high energy prices, poor infrastructure, and regulatory constraints—have significantly weakened productivity across the industry.
According to him, many companies are now redirecting funds originally earmarked for expansion into alternative energy solutions in a bid to remain operational.
“Operational costs have escalated sharply. Companies are now diverting funds meant for expansion into alternative energy sources to stay operational,” he said.
He warned that the trend is stifling growth and limiting the sector’s contribution to the broader economy, as businesses struggle to scale operations and create new jobs.
“When businesses cannot expand, they cannot create jobs. Instead, they begin to scale down operations. In many cases, companies are being forced to take drastic measures, including layoffs, to manage rising costs,” he added.
The union leader further cautioned that prolonged pressure on firms could make redundancies inevitable, describing it as a “painful reality” already unfolding across parts of the sector.
The issues
Nigeria’s industrial sector continues to grapple with structural challenges, including unreliable power supply, high production costs, and regulatory bottlenecks. These issues have not only weakened productivity but also accelerated the shift towards casual labour, reducing job security and long-term workforce development.
What’s being said
CANMPSSAN is calling for urgent and coordinated policy intervention to stabilise the sector, protect jobs, and address the growing skills gap. The union also warned that while technological advancement is necessary, unregulated automation could worsen unemployment if workers are not adequately reskilled.
What’s next
Stakeholders are expected to push for reforms targeting energy costs, infrastructure improvement, and labour policies. Increased investment in workforce training and reskilling programmes may also become critical to balancing innovation with job preservation.
Bottom line
Without urgent intervention, rising costs, labour casualisation, and a widening skills gap could further weaken Nigeria’s industrial sector, threatening both productivity and long-term employment stability.
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