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•Exit of manufacturing companies threatens real sector, Ajayi-Kadir warns
The Manufacturers Association of Nigeria (MAN) has called for civility and caution by the Economic and Financial Crimes Commission (EFCC) operatives when carrying out their investigations.
Director-General, MAN, Segun Ajayi-Kadir, said MAN received the news of the invasion of Dangote Industries Limited (DIL) by dozens of the EFCC operatives with great shock, adding that about 50 other companies are also being investigated, with the likelihood that they will receive the same crude treatment.
He said while no company is above investigation, caution is more about the appropriateness of the method rather than the sheer brigandage that was on display.
Adding that an armed invasion by dozens of security operatives to get documents from a well-structured and identifiable company like DIL was not needed, he said: “We understand that it is part of EFCC’s ongoing investigation into forex allocations in the country and it is within their remit to do so. But the question is – what is the wisdom in security operatives swooping on the headquarters of a leading African conglomerate only to demand documents relating to the allocation of foreign exchange to the Group in the last 10 years?
“Is it that the company refused to respond to a request to present those documents? Are those documents only available with DIL and not in the Central Bank or the relevant commercial banks? Was there a possibility of armed resistance, if the EFCC operatives had come unarmed and devoid of the Gestapo-style invasion? Why hurt the corporate image and disrupt the business operations of the company?”
The MAN DG added that the fact that the current administration is actively aiming to attract foreign investors should dictate a more circumspect and civil way to make enquiries and secure documents from existing/domestic operators.
“There is no doubt that this news has gone round the world and many, including would-be investors, would be taken aback and anxiously awaiting how the story will end. This may not be the best way to show that Nigeria is committed to good corporate governance.
“Because of DIL’s status within the Nigerian economy, Africa and the world, the outcome of this rather unfortunate incident may have a great impact on how we are perceived as respecters of the rights of business entities. Government agencies should exercise restraints and be mindful of the wider implications of their actions on our fragile business environment. I think it is important for the EFCC to take steps to clear the air on the negative interpretation being adduced to this action. This is necessary to reassure existing business concerns and encourage would-be investors,” he said.
Following the departure of another multinational firm at the start of the year, Jubilee Syringe Manufacturing (JSM), the DG has also urged the federal government to declare a state of emergency on foreign exchange (FX) to save businesses from total collapse.
He said the government should summon an emergency meeting with MAN and other members of the organised private sector (OPS) to find a lasting solution to the continued exit of multinational firms.
Ajayi-Kadir warned that the exit of multinational firms from Nigeria would have a severe effect on the country’s industrialisation agenda, frowning at the declaration of temporary redundancy in JSM operation in Nigeria.
He said President Tinubu-led administration should hold an emergency summit on FX amidst the dislocation and disruption it is causing to businesses and the real sector.
According to him, MAN, as the umbrella body of manufacturing firms in Nigeria, remains very concerned with the exodus of multinational firms out of Nigeria and the collapse of small and medium-scale businesses, saying this is not portraying the country as an investment-worthy destination. He explained that the harsh operating environment and other macroeconomic conditions are affecting investor confidence in the country’s economy.
“Nigeria is currently facing trust challenges among other countries in the world, among would-be investors and at the same time, we are still sending wrong signals about the country’s image and her battered economy. Consequently, this has reached the stage where multinationals are not ready to come in and invest in Nigeria again as they can see other well-established companies pulling out,” he said.
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