Over the past 18 months, Nigeria has seen a significant exodus of companies due to sweeping reforms in the energy and foreign exchange markets, which have disrupted the business environment.
An analysis reveals that major companies listed on the NGX reported cumulative forex losses of N1.7 trillion, with the consumer goods sector being the hardest hit.
The Manufacturers Association of Nigeria (MAN) reported that 767 manufacturing companies shut down in 2023, and another 365 faced distress, driven by inflation, interest rate issues, and exchange rate volatility.
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Capacity utilization in the manufacturing sector fell to 56%, while unsold goods inventory surged to N350 billion.
However, despite these challenges, some companies are expanding their operations.
Notable projects include Dangote’s new cement plant in Ogun State, Nestle’s distribution center in Sagamu, Emzor Pharmaceuticals API facility in Sagamu, BUA Cement’s production expansion in Sokoto and Okpella, the Eraskon Lubricant
Blending Plant in Bayelsa, and Transcorp’s new event center and hotel in Lagos. These investments highlight a resilience in Nigeria’s industrial sector, with new companies emerging and foreign direct investment inflows increasing by 67.69% in 2023.