• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Economy

767 manufacturing companies shut down in Nigeria, N350 billion goods unsold in 2023

Sami Tunji by Sami Tunji
March 6, 2024
in Economy, Manufacturing, Sectors, Spotlight
Expert lists non-oil export opportunities open for Nigerian businesses
Share on FacebookShare on TwitterShare on Linkedin

The Manufacturing Association of Nigeria (MAN) has reported a concerning trend within the industry, revealing that about 767 manufacturing companies shut down operations while 335 experienced distress in 2023.

This development is attributed to various economic difficulties, including exchange rate volatility, rising inflation, and a general worsening of the investment climate.

These adversities have taken a toll on the manufacturing sector, significantly impacting its performance and sustainability.

RelatedStories

The 10 most valuable companies in Nigeria as of September 2023 

Nigerian companies spent N164 billion on travel in 2024 as costs of airfares, hotel rates, and logistics soared 

May 1, 2025
Board diversity and inclusion: A new imperative for Nigerian companies

Board diversity and inclusion: A new imperative for Nigerian companies

March 19, 2025

MAN’s revelations came alongside its criticism of the Federal Government’s newly introduced Expatriate Employment Levy (EEL), which the association argues contradicts the objectives laid out in President Bola Tinubu’s Renewed Hope Agenda and the core principles of his Fiscal Policy and Tax Reform initiative.

The imposition of this levy is seen as a counterproductive measure that could exacerbate the already challenging conditions for manufacturers in Nigeria.

Recommended reading: Recap: Companies that exited Nigeria in 2023

On Expatriate Employment Levy

Introducing the Expatriate Employment Levy has sparked considerable concern among industry stakeholders. According to MAN, the levy, which charges $10,000 for staff and $15,000 for directors, represents a drastic increase from the previous $2,000 fee for the Combined Expatriate Residence Permit and Alien Card.

This new levy is criticised for potentially increasing the cost of doing business in Nigeria, particularly for manufacturers grappling with numerous challenges.

Decline in Capacity Utilisation

The manufacturing sector, as reported by MAN, has seen a decline in capacity utilisation to 56%, compounded by rising interest rates and a scarcity of foreign exchange needed for importing essential raw materials and machinery.

The sector also faces an inventory of unsold finished products valued at N350 billion, alongside a real growth drop to 2.4%.

A statement from MAN read:

  • “The imposition of EEL poses potential impact on the manufacturing sector and the economy at large. This will in turn mark an unwarranted and unprecedented addition to the cost of doing business in Nigeria, especially to manufacturers.
  • “The manufacturing sector is already beset with multidimensional challenges. In year 2023, 335 manufacturing companies became distressed and 767 shut down.
  • “The capacity utilization in the sector has declined to 56%; interest rate is effectively above 30%; foreign exchange to import raw materials and production machine inventory of unsold finished products has increased to N350 billion and the real growth has dropped to 2.4%. Expatriates in Nigeria currently pay more than $2000 for CERPAC. The sector cannot afford another disincentive to increased investment and portfolio expansion.”

More Insights

  • Moreover, MAN raises alarms over the EEL’s potential conflict with Nigeria’s international trade agreements, such as the African Continental Free Trade Area agreement, which aims to enhance the free movement of skilled labour across the continent.
  • The association fears that the levy could prompt retaliatory measures against Nigerians working abroad, hinder regional integration efforts, and tarnish Nigeria’s image on the global stage.
  • In light of these concerns, MAN has called on President Tinubu to reconsider the implementation of the Expatriate Employment Levy, warning of its negative consequences on the manufacturing sector and the broader economy. The association urges discontinuing the levy to prevent further distress within the sector and align with the broader goals of economic growth and development in Nigeria.
Recommended reading: After raising over $70 million these Nigerian startups shut down in 2023

Follow us for Breaking News and Market Intelligence.
Tags: expatriate employment levyMANManufacturers in NigeriaNigerian Companies
Sami Tunji

Sami Tunji

Sami Tunji is a writer, financial analyst, researcher, and literary enthusiast. Aside from having expertise in various forms of writing (creative, research, and business writing), he is passionate about socio-economic research, financial literacy, and human development. Currently, he is a financial analyst at Nairametrics and an African Liberty Writing Fellow 2023/2024.

Related Posts

The 10 most valuable companies in Nigeria as of September 2023 
Exclusives

Nigerian companies spent N164 billion on travel in 2024 as costs of airfares, hotel rates, and logistics soared 

May 1, 2025
Board diversity and inclusion: A new imperative for Nigerian companies
Op-Eds

Board diversity and inclusion: A new imperative for Nigerian companies

March 19, 2025
Manufacturers Association of Nigeria (MAN) becomes institutional partner to agrofood & plastprintpack Nigeria 2025  
Companies

Manufacturers Association of Nigeria (MAN) becomes institutional partner to agrofood & plastprintpack Nigeria 2025  

March 11, 2025
Government Urged to Deliberately Subsidize Manufacturing in Nigeria for Economic Growth
Manufacturing

Delay in Ajaokuta Steel takeoff reduces confidence in Nigeria’s Iron, Metal & Steel Industry- MAN 

February 19, 2025
MAN, P&G
Manufacturing

Incessant electricity tariff hikes affecting performance of Nigeria’s manufacturing sector – MAN

February 6, 2025
MAN CEO
Economy

Manufactures record N1.4 trillion worth of unsold goods in 2024 due to inflation – MAN President  

January 22, 2025
Next Post
Bitcoin, trading

Bitcoin regains $6K after traders lost $1 billion to crypto volatility

Comments 2

  1. BISI olugbade PRO says:
    March 6, 2024 at 5:35 pm

    I like your daily news

    Reply
  2. 9jaRealist says:
    March 6, 2024 at 10:46 pm

    Where’s that dude here that keeps on going about Nigeria’s hyperinflation supposedly being the result of “too much money” in circulation?!

    Our reality is that there’s not even enough money chasing the goods being produced and manufacturers are therefore constrained to produce below installed capacity to avoid inventory piling up. SMH

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

nlng
Zenth Bank
Emple
first bank
Zenth Bank








DUNS

Recent News

  • Plateau govt approves 159 mining firms to resume operations in the state 
  • Non-payment of ground rent: FCTA to take possession of 4,794 revoked properties from Monday 
  • IMTO inflows surge by 45% to $4.76 billion in 2024 amid CBN reforms 

Follow us on social media:

Recent News

Plateau State, Caleb Mutfwang, Grains

Plateau govt approves 159 mining firms to resume operations in the state 

May 23, 2025
FCTA approves N2.1 billion contracts for FCT as FCT-IRS gets N242.8 million for Microsoft license 

Non-payment of ground rent: FCTA to take possession of 4,794 revoked properties from Monday 

May 23, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics