Business News

MAN says 60% of manufacturers in North-East shut down by insecurity

The Director General of the Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, has said that between 56% and 60% of the association’s members in the North-East Nigeria have been shut down by insecurity in the region.

He said this during an interview on Channels Television, Sunrise Daily, on Saturday, where he complained about the challenge of insecurity to businesses and how it has resulted in additional cost to firms across the country.

Furthermore, the Director-General of MAN lamented the increased cost contributed by private security  to the overall production costs, stating that  some companies or members of MAN pay more on security than taxes.

His statement was in response to the security concerns in Okomu Oil Palm Plc where the attacks on the company and its workers in the past few days led to the loss of lives and properties.

He noted that insecurity is a disincentive to manufacturing and government’s efforts to attract investment to the country. He called on governments at all levels to step up.

Speaking on other issues affecting the manufacturing sector, Mr Ajayi-Kadir touched on the electricity tariff hike and central bank’s monetary policy tightening, stating that MAN is not opposed to increase in electricity tariff considering the rise in oil prices and others.

He stated that there has to be engagement with stakeholders as stipulated by law and  value for money for the consumers.

The North-East region has seen the deadliest spate of terrorism in Nigeria’s history in recent times beginning from the Boko-Haram insurgency in 2009. However, this insecurity has gradually spread all over the country, especially the North-West and North-Central, adversely affecting food production and other businesses.