Nigeria has lost the services of 767 (Seven Hundred and Sixty-Seven) manufacturing companies within a very short period, as the Manufacturers Association of Nigeria, MAN revealed that as of 2023, distress triggered the closure of 335 (Three Hundred and Thirty-Three) factories.
The Association pointed out several reasons that led to the collapse of the manufacturing establishments including the current inflation rates, economic hardship, epidemic power supply, and explosive exchange rate, among other factors.
Other incidents in connection to the exit or collapse of those companies include the recently introduced Expatriate Employment Levy by the Federal Government.
The association said it was struck with disbelief, seeing that the levy runs contrary to President Bola Tinubu’s Renewed Hope Agenda and the kernel of his Fiscal Policy and Tax Reform initiative.
According to MAN, the unintended negative consequences on the manufacturing sector are humongous and cannot be accommodated at this time of evident downturn in our economy.
The statement further noted that capacity utilisation in the sector has declined to 56 per cent amid rising interest rates and scarcity of forex needed to import raw materials and machinery.