Nigeria's chemical and non-metallic products sector faces a severe downturn, with over 50 firms shutting down or running at low capacity, resulting in around 100,000 job losses. The crisis is driven by high energy costs, inflation, and unstable exchange rates. Urgent government intervention is needed to address these challenges.
The economic downturn has forced over 50 companies in Nigeria’s chemical and non-metallic products sector to either shut down or operate at minimal capacity. This crisis, which has hit multinationals, medium-sized, and small businesses alike, is attributed to a range of issues including high energy costs, inflation, and unstable exchange rates.
The Chemical and Non-Metallic Products Employers Federation (CANMPEF) reports that about 100,000 jobs have been lost as a direct consequence. Major players such as GlaxoSmithKline Beecham, Procter & Gamble, and Kimberly-Clark are among those struggling or closing down. The situation has been exacerbated by the removal of fuel subsidies, soaring energy tariffs, and unreliable power supply.
Kimberly-Clark’s factory in Ikorodu, recently inaugurated with a $100 million investment, now faces severe challenges due to these economic pressures. Similarly, companies like Unilever and PZ Industries are on the brink of closing, further deepening the crisis.
CANMPEF's Executive Secretary, Olorunfemi Oke, cites government policies as significant contributors to the sector’s woes, including high import duties and volatile currency exchange rates. He urges the government to address these issues by providing better forex access, reducing import duties, and improving infrastructure.
The National Union of Chemical Footwear Rubber Leather and Non-Metallic Products Employees (NUCFRLANMPE) has called for immediate intervention to prevent further job losses and business closures. The union emphasizes that without urgent government action, the sector’s continued decline could have severe repercussions on the broader economy.
