Manufacturing in Nigeria’s Northeast Faces 60% Factory Closure Amid Security Crisis — MAN
The manufacturing landscape in Nigeria’s Northeast continues to suffer due to escalating insecurity, with approximately 60 per cent of factories in the region ceasing operations, according to the Director-General of the Manufacturers Association of Nigeria (MAN), Dr. Segun Ajayi-Kadir.
Expressing grave concern, Ajayi-Kadir shared these insights during a courtesy visit from members of the executive council of the Commerce and Industry Correspondents Association of Nigeria (CICAN) at the MAN House in Lagos.
He attributed the decline to persistent security threats, including insurgency, banditry, and other violent activities, which have compelled many manufacturers to suspend production. Several industrial facilities now stand deserted, a stark reflection of the hostile business environment that continues to hamper growth.
“Prolonged insecurity has disrupted supply chains and increased production costs and led to the displacement of numerous industries that once contributed significantly to economic growth, employment generation, and industrial development in the region,” Ajayi-Kadir explained.
He further noted that many investors remain hesitant to establish or expand manufacturing facilities in the Northeast, citing concerns over the safety of personnel, equipment, and investments. The fallout has been devastating: thousands of jobs lost, rising poverty levels, and limited economic opportunities for residents of the affected states.
In calling for urgent intervention, Ajayi-Kadir urged the federal government and security agencies to intensify efforts to restore peace and stability. “Sustainable industrial growth cannot thrive in an atmosphere of insecurity,” he asserted. He emphasised that enhanced security measures would encourage displaced manufacturers to return, attract new investments, and rekindle economic activities in the region.
The MAN DG also appealed to policymakers to implement targeted support measures—such as infrastructure development, access to financing, and incentives—to aid in rebuilding the region’s industrial base.
Looking ahead, Ajayi-Kadir expressed optimism that the Northeast could reclaim its position as a hub for manufacturing and commerce if security and government interventions are sustained.
While commending President Bola Ahmed Tinubu for initiating bold economic reforms, he acknowledged that many Nigerians have yet to fully experience the benefits of these policies due to ongoing activities by economic saboteurs.
He also highlighted the significant relief provided by the Dangote Refinery, noting its role in stabilising domestic petroleum prices amidst regional tensions.
Regarding the new tax regime, Ajayi-Kadir described it as a positive development but warned that improper implementation could pose substantial risks to Nigeria’s industrial sector.
He reaffirmed MAN’s commitment to safeguarding its members’ interests and advocating policies that address the sector’s challenges nationwide.
In closing, he recognised the media as a vital partner in national development, pledging continued support for CICAN in their professional endeavours.
Earlier, CICAN Chairman, Alhaji Taiwo Hassan, expressed his organisation’s goal to strengthen its longstanding relationship with MAN. He also announced plans to intensify the “Made-in-Nigeria” campaign, aiming to bolster local manufacturing and contribute meaningfully to Nigeria’s economic growth.