The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has argued that the recent departure of some multinational companies from Nigeria presents a valuable opportunity for local manufacturers to flourish with adequate government support.
In a media interview, Ajayi-Kadir emphasized that the challenges posed by the exit of multinationals can be transformed into an advantage by focusing on empowering domestic manufacturers.
He stated, “The departure of these multinationals should be a clear signal to the government. We need to be strategic in promoting local manufacturers. Foreign direct investment is beneficial, but empowering local investors and existing manufacturers should be a priority because it offers long-term stability.”
Expressing concerns about the future of Nigeria’s manufacturing sector, Ajayi-Kadir called for decisive government action to prevent further exits and foster sector growth. “The government should provide us with access to credit at competitive rates, ideally not higher than five percent. These measures can significantly alleviate the pressures on the manufacturing sector.
“Industrialization is a strategic choice, and the government must decide if it wants the country to be industrialized. If so, it must take all necessary steps to remove the obstacles hindering the sector’s performance. Nigeria has yet to do so, resulting in closures,” he added.
Meanwhile, observations indicate that many of the departing multinational companies, primarily American and European, are being replaced by Asian firms.
Public policy analyst Magnus Onyibe noted that the exit of these foreign firms is not as detrimental as it might seem, as many are being replaced. “A pattern has been developing over time, with Asian companies stepping in to fill the void left by American and European companies, including Chinese, Indian, Singaporean, and Lebanese firms,” Onyibe stated.
For instance, Turkish firm Hayat Kimya’s premium diaper brand, Molfix, has filled the gap left by P&G’s withdrawal. Tolaram Group, a Singaporean firm, acquired Diageo’s stake in Guinness Nigeria. Additionally, a group of Nigerian investors, Renaissance Group, purchased Shell’s onshore holdings when the oil giant decided to focus on offshore activities, and EnjoyCorp Limited bought Heineken’s majority stake in Champion Breweries.
