December 11, 2023 NewsOrient
Business
By Sam Egburonu, Editor

The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has bemoaned the exit of giant multinational consumer goods manufacturer, Procter & Gamble (P&G) from Nigeria, but noted that the Federal Government of Nigeria should learn vital lessons from the exit of P&G and other multinational companies from Nigeria.

He reasoned that the government should learn to encourage local manufacturers who, according to him would be more enduring.

Ajayi-Kadir, speaking on Channels Television’s Sunrise Daily on Monday, said: “Obviously, we received it (P&G exit) with sadness but it is not totally unexpected and more may happen because there is no doubt that we operate in an environment that is challenged.”

According to him: “Manufacturing in any economy is a strategic choice, the government has to make up its mind whether it wants its country to be an industrialised one.

Once that decision is taken, you have to do all that is needed to remove the binding constraints that limits the performance of that sector, Nigeria has not done so and that is why you can see there are closures.

“I think it is news because it is Procter and Gamble, it is news because it is GlaxoSmithKline, it is news because they have been in the country for a very long time, but they are several others that have died quietly and for reasons that are clearly avoidable.”

On the implication of the exits, he said: “I think there is a strong lesson to be learnt there, which is the fact that the big ones that are exiting are those multinationals and I think this will send a clear signal to government that regrettable as it is, it should guide future actions, we need to be strategic in what we promote.

“So, what this means is that if you have a challenged local manufacturer, he is not likely to go anywhere.

“That is why we are saying that foreign direct investment is excellent; it has led to phenomenal improvement in the performance of the manufacturing sector for so many economies but it should come secondary to empowering the local investor, the existing manufacturers because that is what is enduring.

“So, it is regrettable, it is not totally unexpected, and I think except we take clear redefined measures, many more will happen,” he said.

NewsOrient reports that P&G took the decision to shut down production lines in Nigeria and commence exportation of its products shortly after another giant manufacturer, GlaxoSmithKline took the same decision.

As would be expected, this recent exit of multinational companies from Nigeria has become a source of concern to observers. To the DG of MAN however, Nigeria should learn from the development to restrategize and encourage her local manufacturers.

~ NewsOrient

Photo Credit: Channels Television