In the wake of Procter & Gamble's (P&G) recent departure from Nigeria, the Manufacturers Association of Nigeria (MAN) has expressed worry and issued a warning about possible withdrawals from the sector.

The Director General of MAN, Segun Ajayi-Kadir, expressed his disappointment but admitted that the departure was not totally unexpected.

He linked it to the many difficulties faced by producers in the challenging business climate of the nation.

“We received the news with sadness, but it is not totally unexpected,” Ajayi-Kadir said when he appeared on Channels Television’s Sunrise Daily on Monday.

“Manufacturing in any economy is a strategic choice, and the government must decide if it wants the country to be industrialised. If so, it must take all necessary steps to remove the binding constraints that hinder the sector’s performance. Nigeria has not done so, and that is why we see closures.”

Ajayi-Kadir highlighted that P&G's departure is merely the most recent in a long line of firms quitting the nation. He stated that in order to solve problems like inadequate infrastructure, erratic policies, and restricted access to financing, the government must act right now.

“This is news because it’s Procter and Gamble, it’s news because it’s GlaxoSmithKline, it’s news because they have been in the country for a very long time,” he said. “But several others have quietly closed down, and the reasons are clearly avoidable.”

Although Ajayi-Kadir regrets these big corporations leaving, he sees this as a chance to concentrate on supporting regional producers. He thinks that boosting current producers will make the industrial sector more resilient and long-lasting.

“I think there is a strong lesson to be learned here,” he said. “The big ones that are exiting are the multinationals, and this should send a clear signal to the government. We need to be strategic in what we promote. 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, but it should come secondary to empowering the local investor, the existing manufacturers, because that is what is enduring.”