According to Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria (MAN), the high level of insecurity in the country has forced a significant percentage of MAN members in the insurgency-hit North-East region of Nigeria out of business. He mentioned that many manufacturers in the country are spending more on securing their assets than they are paying in taxes to the government. Ajayi-Kadir highlighted that insecurity poses a major obstacle to manufacturing activities, with some manufacturers having to allocate more funds to security than to tax payments due to the ongoing and continuous nature of security expenses.
He expressed concern about the rising costs of security and energy, which are contributing to the overall production costs for manufacturers, ultimately leading to higher prices for goods in the country. Ajayi-Kadir emphasized the need for dialogue between stakeholders, such as manufacturers and the Nigerian Electricity Regulatory Commission (NERC), before any potential increases in electricity tariffs. He opposed any sudden surge in electricity prices, stating that the current cost of power supply is already excessively high for many manufacturers in Nigeria.
Ajayi-Kadir pointed out the challenging business environment facing both companies and individuals, calling for collaboration between the government and stakeholders to address economic reforms and policies effectively. He stressed the importance of a cooperative approach between the private sector and the government, rejecting a top-down method and advocating for a synergy that benefits both sectors for the overall progress of the economy.
