More than 50 companies in Nigeria’s chemical and non-metallic products sector are facing severe challenges, with many multinational, medium, and small-scale enterprises either shutting down, on the brink of closure, or operating at significantly reduced capacity.

Once boasting a membership of over 100 firms under the Chemical and Non-Metallic Products Employers Federation (CANMPEF), the sector employed approximately 350,000 people nationwide. However, recent reports indicate that more than half of these companies have ceased operations, with another four teetering on the edge of closure and 80% of the remaining businesses operating below full capacity.

Industry insiders estimate that over 100,000 jobs have been lost directly and indirectly in the past year alone, affecting companies producing a wide range of products, including pharmaceuticals, cosmetics, detergents, cement, and glassware.

Major companies like Glaxo SmithKline Beecham, Procter & Gamble, Mega Plastic Nig Limited, Twinstar Nig Limited, Femina Hygienical Products Nig Limited, and Linda Manufacturing Company have already closed their doors. Others, including Unilever, PZ Industries, Prime Pack, and Reckitt & Benckiser, are at risk of following suit. Kimberly-Clark, known for its Huggies diapers and sanitary pads, is also considering exiting Nigeria due to high energy costs, expensive raw materials, and dwindling customer demand. The company’s $100 million factory in Ikorodu, Lagos State, which opened just two years ago, is struggling to remain operational.

Executive Secretary of CANMPEF, Mr. Olorunfemi Oke, attributed these closures to government policies, including the floating of the naira, removal of fuel subsidies, high exchange rates, and inadequate power supply. He noted that these challenges have led to soaring production costs, reduced capacity utilization, and significant job losses.

Mr. Oke called for urgent government intervention to address these issues, including easing access to foreign exchange, reducing import duties on raw materials, and improving energy and infrastructure. He stressed the importance of supporting the manufacturing sector to prevent further job losses and economic decline.

Similarly, the Managing Director of Voda Paints Limited, Mr. Rotimi Aluko, highlighted the impact of unreliable power, unstable currency, and rising inflation on the sector. He emphasized the need for government action to create a more favorable business environment, suggesting that prioritizing manufacturing could transform Nigeria into an economic powerhouse.

The National Union of Chemical Footwear Rubber Leather and Non-Metallic Products Employees (NUCFRLANMPE) has also urged the government to intervene, warning that continued economic distortions could lead to further industrial collapse and exacerbate the already high unemployment rate.

The sector’s decline underscores the urgent need for comprehensive economic reforms to revive Nigeria’s struggling industries and safeguard the livelihoods of its workforce.