In the past decade, more than ten manufacturing companies in Nigeria have been compelled to halt their operations, primarily due to the deteriorating macroeconomic challenges in the country. Issues such as foreign exchange scarcity, unreliable power supply, port congestion, excessive taxation, security concerns, poor infrastructure, and inflation have had a detrimental impact on both the Nigerian populace and businesses. Additionally, high energy costs, reduced industrial output, and diminished demand for products have further exacerbated the challenges faced by manufacturing enterprises in Nigeria.
Here are some of the manufacturing companies that have regrettably exited the sector in the last ten years:
1. Louis Carter Industries
In 2017, Louis Carter Industries ceased its operations, forcing more than 40 of its employees to rejoin the already saturated labor market. The company, established in 1989 and located in Nnewi, Anambra, produced plastic items such as gallons and basins. It succumbed to escalating production costs, foreign exchange constraints, policy uncertainties, and soaring energy expenses.
2. Moak Enterprises
Moak Enterprises, once a prominent bottled/sachet water company in Sango-Ota, Ogun State, met its end in 2021. Known for its ‘Meridian Waters’ brand, the company produced numerous truckloads of sachet water each month, serving wholesalers and retailers in Ogun State and beyond. The forex crisis and the resulting surge in raw material costs contributed to its closure.
3. Procter & Gamble (P&G)
P&G, celebrated by the Nigerian government as the United States’ largest non-oil investment in the country, exited in 2018. Despite an elaborate inauguration, the company ceased production in Agbara, Ogun State, due to escalating production costs stemming from high import duties and energy expenses. P&G’s reliance on imported raw materials was also adversely affected by government-imposed tariffs and foreign exchange constraints.
4. Tower Aluminium
Tower Aluminium, established in Nigeria in 1959, supplied aluminum products such as pots, plates, spoons, and roofing sheets to homes in Nigeria and West Africa. However, it had to shut down its operations in 2020.
5. GlaxoSmithKline Nigeria
GSK decided to discontinue its drug production plant in Agbara, Ogun State, in 2021, as the costs associated with continued manufacturing became unsustainable. The company shifted to contract manufacturing arrangements with Fidson Healthcare, another local manufacturer.
6. Mayor Biscuits Company Limited
Mayor Biscuits Company Limited (MABISCO), a prominent indigenous biscuits company in Ogun State, Nigeria, announced its closure and intention to sell its multi-million-dollar biscuits plant. The decision was driven by a desire to concentrate on the company’s core competencies.
7. Technoflex Company Limited
Technoflex, a player in the industrial plastic and foam sub-sector, ceased operations in 2017 due to rising production costs.
8. Evans Medicals
Evans Medicals, once one of Nigeria’s largest pharmaceutical companies, lost its assets due to overwhelming debt. Despite earlier optimism and substantial investments in upgrading its production facilities, a court order in 2017 led to the takeover of the company’s assets by First Bank and the now-defunct Skye Bank, marking the end of Evans’ aspirations.
9. Multi-Trex Integrated Foods Plc
This company experienced optimal performance until funding issues surfaced. Forced to borrow from the now-defunct Skye Bank to stay afloat, the decision ultimately proved detrimental. The Asset Management Corporation Organization of Nigeria eventually assumed control of the business, leading to a drastic decline in productivity.
10. Other Affected Companies
Several other companies, including Surest Foam Limited, Mufex, Framan Industries, Deli Foods, Stone Industries, and MZM Continental, among others, have faced similar challenges and had to cease their operations in Nigeria.
