Over 700 Companies Shut Down Business, 335 Distressed In 2023 Over Economic Hardship
The Manufacturers Association of Nigeria (MAN), has revealed that at least 767 manufacturers shut down business, while 335 became distressed in 2023.
The Director General of MAN, Ajayi Kadiri, disclosed this in a recent statement while reacting to the hardship in the country and the recently introduced Expatriate Employment Levy by the Federal Government.
Media recalls that President Bola Ahmed Tinubu unveiled the EEL handbook last week Tuesday, which will see a levy of between $10,000 to $15,000 on employers that employ expatriates in Nigeria.
However, MAN condemned the introduction of EEL despite the prevalence of hardship caused by soaring inflation that manufacturers in Nigeria grapple with.
The Association said the unintended negative consequences on the manufacturing sector are humongous and cannot be accommodated during the economic downturn.
“The imposition of EEL potentially impacts the manufacturing sector and the economy at large.
“This will, in turn, mark an unwarranted and unprecedented addition to the cost of doing business in Nigeria, especially to manufacturers. The manufacturing sector is already beset with multidimensional challenges. In 2023, 335 manufacturing companies became distressed and 767 shut down.
“Inventory of unsold finished products has increased to N350bn, and the real growth has dropped to 2.4 per cent,” it said.
Media recalls that since the removal of fuel subsidies and the floating of the Naira in June last year, Africa’s most populous nation, Nigeria, has continued to experience an inflation hike, which stood at 29.90 per cent in January 2024.
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