Amidst the challenging economic climate in Nigeria, manufacturers are facing significant hurdles, leading some to shutter operations while others opt to cut procurement orders.
This revelation comes from Rotimi Aluko, the President of the Chemical and Pharmaceutical Sector of the Manufacturers Association of Nigeria (MAN), during the association’s annual general meeting held in Lagos on Tuesday.
Aluko highlighted the adverse business environment in the country, stating that the manufacturing sector is grappling with various economic storms that have pushed it perilously close to a state of near-recession. The impacts of these challenges have been severe, compelling several manufacturers to cease operations, while others are contending with reduced procurement orders.
He specifically pointed out the uncertainties stemming from the last general elections, beginning from pre-election activities through the elections themselves, and the lingering post-election resolution issues. These factors have added to the economic woes faced by the manufacturing sector, creating an atmosphere of anxiety and hindering economic activities.
Furthermore, Aluko expressed concerns about the removal of fuel subsidies and the government’s move to unify exchange rates, noting that these policy changes have left a devastating mark on the manufacturing industry.
During the event, Abiola Ogunrinde, the Managing Director and CEO of Tropical Naturals Ltd, delivered a keynote presentation on “Overcoming skills shortages and optimizing supply chains.” Ogunrinde highlighted the shortage of workers with the necessary skills, emphasizing the preference for degrees over technical and vocational skills in Nigeria. He also addressed the issue of a mass exodus of skilled individuals, commonly referred to as “japa.”
The challenges faced by manufacturers underscore the need for comprehensive measures to address economic uncertainties, boost investor confidence, and create an environment conducive to sustainable growth in the manufacturing sector.
