{"id":21907,"date":"2024-03-06T08:42:41","date_gmt":"2024-03-06T08:42:41","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=21907"},"modified":"2024-03-06T08:42:41","modified_gmt":"2024-03-06T08:42:41","slug":"manufacturing-sector-crisis-767-companies-shut-down-335-distressed-in-2023-says-man","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2024\/03\/06\/manufacturing-sector-crisis-767-companies-shut-down-335-distressed-in-2023-says-man\/","title":{"rendered":"Manufacturing Sector Crisis: 767 Companies Shut Down, 335 Distressed in 2023, Says MAN"},"content":{"rendered":"
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The Manufacturers Association of Nigeria (MAN) has sounded the alarm over the dire state of the manufacturing sector, revealing that in 2023 alone, 767 manufacturing companies ceased operations while an additional 335 became distressed due to numerous challenges plaguing the critical sector.<\/p>\n

According to Segun Ajayi-Kadir, Director General of MAN, the proposed implementation of the Expatriate Employment Levy (EEL) is poised to exacerbate the sector’s distress further. The EEL mandates an annual levy ranging from $10,000 to $15,000 on employers hiring expatriate workers, set to take effect from March 15.<\/p>\n

Ajayi-Kadir expressed concerns that the imposition of the EEL would undermine President Bola Ahmed Tinubu’s efforts to bolster confidence among domestic and foreign investors.<\/p>\n

“The manufacturing sector is already grappling with a myriad of challenges,” Ajayi-Kadir stated. “The imposition of the EEL will mark an unwarranted addition to the cost of doing business in Nigeria, particularly for manufacturers.”<\/p>\n

Highlighting the sector’s struggles, Ajayi-Kadir cited declining capacity utilization, soaring interest rates, foreign exchange constraints, burgeoning inventory of unsold products, and sluggish real growth.<\/p>\n

Moreover, Ajayi-Kadir argued that the EEL contradicts Nigeria’s international trade agreements, potentially triggering retaliatory measures against Nigerians working abroad and hindering regional integration efforts.<\/p>\n

MAN emphasized that the levy is perceived as punitive, deterring foreign direct investments and dissuading multinational companies from establishing regional headquarters in Nigeria. Additionally, it will render Nigeria a less attractive destination for global expertise, ultimately impeding economic growth and development.<\/p>\n

MAN urged the government to reconsider the implementation of the EEL, emphasizing the need to foster an enabling environment for investment and economic prosperity.<\/p>\n

As the manufacturing sector grapples with mounting challenges, urgent interventions are required to safeguard its viability and contribute to Nigeria’s sustainable economic growth.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Manufacturers Association of Nigeria (MAN) has sounded the alarm over the dire state of the manufacturing sector, revealing that in 2023 alone, 767 manufacturing companies ceased operations while an additional 335 became distressed due to numerous challenges plaguing the critical sector. According to Segun Ajayi-Kadir, Director General of MAN, the proposed implementation of the […]<\/p>\n","protected":false},"author":12,"featured_media":21915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-21907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/21907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=21907"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/21907\/revisions"}],"predecessor-version":[{"id":21926,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/21907\/revisions\/21926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/21915"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=21907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=21907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=21907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}