The Manufacturers Association of Nigeria (MAN) has sounded the alarm on the devastating impact of insecurity on businesses, revealing that 60% of its members in the insurgency-troubled North-East region have ceased operations.
Segun Ajayi-Kadir, the Director-General of MAN, disclosed this during an interview on Channels Television’s Sunrise Daily program. He emphasised that insecurity has become a significant obstacle to manufacturing activities, with many manufacturers compelled to allocate more resources to security than they pay in taxes.
Insecurity is a major challenge. We lost 56 to 60 per cent of our members in the North-East to insecurity. They just stopped production, Ajayi-Kadir lamented.
Some of us pay for security more than the taxes that we pay because it (security expenses) has to be continuous, he added.
The escalating security and energy costs have further worsened the challenges manufacturers face, leading to higher production costs and, subsequently, increased prices of goods in the country. Ajayi-Kadir emphasised the need for constructive engagement between stakeholders, particularly manufacturers and regulatory bodies like the Nigerian Electricity Regulatory Commission (NERC), to address concerns like electricity tariffs.
Ajayi-Kadir highlighted the exorbitant power supply cost as a significant obstacle hindering the viability of many manufacturing businesses. He urged the government to collaborate with stakeholders to navigate the complexities of economic reforms and policies, advocating for a more collaborative approach between the private and public sectors.
We do not, and we cannot afford the Lord-and-Master relationship. We operate in an economy where the private sector has a lot of stakes, and the Federal Government or the public sector must provide for the people’s overall well-being. So, there has to be this synergy for us to progress, Ajayi-Kadir stated.
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