Emmanuel Ochayi
Foreign investments in Nigeria’s manufacturing sector nosedived by 54% to $279.5 million in the third quarter of 2023, a contrast from $605 million in the previous quarter.
READ ALSO: GSK, P&G Exit: Nigerians Should Worry More About Impact Of Heavy Import On Economy – MAN DG
Join our WhatsApp ChannelThis was revealed by the National Bureau of Statistics’ Capital Importation report for the third quarter.
Despite this, the production sector remained the top receiver of capital imports during this period.
The Manufacturers Association of Nigeria (MAN) voiced apprehension over detrimental government policies contributing to this capital flight.
READ ALSO: Investment In Nigerian Manufacturing Sector Drops By N368bn In 8 Years – Report
Francis Meshioye, MAN’s President, emphasized the pressing concerns, saying, “More international manufacturing companies may leave the country should power distributors implement the planned tariff hike.”
Meshioye further highlighted the challenges faced by manufacturers in Nigeria, attributing the decline in investments to factors like high energy costs, limited funding access, excessive taxation, and infrastructure deficits.
Notably, the exit of multinational firms like GlaxoSmithKline and Unilever earlier in the year, followed by Sanofi-Aventis and Procter & Gamble in Q4 2023, exacerbates this worrisome trend, potentially signaling a larger exodus if issues persist.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
