The article discusses the decline of food and beverage companies in Nigeria, highlighting economic failures attributed to foreign exchange scarcity, poor infrastructure, and excessive taxation. It calls for urgent implementation of people-oriented policies and Public Private Partnerships to revitalize the sector and improve local production capabilities. The aim is to leverage available resources and modern technology to boost the economy and ensure a secure environment for growth.
The once-bustling Ikeja industrial hub in Lagos has declined, with many manufacturing companies, including Cocoa Industries Limited, shutting down. Numerous factories across Nigeria have followed suit, contributing to the economic failures despite the country’s rich natural resources. Between 2002 and August 2019, 109 companies were delisted, emphasizing a worsening economic situation, as reported by various news headlines over the years.
The critical factors driving these closures include foreign exchange scarcity, inadequate electricity supply, and excessive taxation. Other issues comprise poor infrastructure, high energy costs, and low consumer purchasing power. Over the years, policy inconsistencies from the government, difficult operational environments, poor management, and lack of access to funding have collectively hindered the growth of these companies, particularly in the food and beverage sector.
This economic predicament leads to a surplus of unemployed youth, exacerbating Nigeria’s insecurity challenges. Immediate, people-oriented policies must replace the blame game among political leaders, with a focus on urgent reforms. Public Private Partnerships (PPP) can be key to revitalizing the economy and ensuring a secure environment for production.
To stimulate economic recovery, there should be a focus on creating a conducive environment through consistent electricity supply, better infrastructure, easier access to funding, and simplification of taxation. Nigeria has witnessed the exit of over 50 multinationals between 2015 and 2024, highlighting the urgent need for viable policies that promote local production of goods.
By leveraging existing raw materials and implementing modern technology throughout the food value chain—from production to export—Nigeria can significantly boost its GDP and Human Development Index (HDI). Executing these strategies now can align with national interests and foster economic growth in a secure environment.
The article emphasizes the urgent need for Nigeria to address the factors leading to the collapse of food and beverage companies. With key issues such as poor infrastructure, high taxation, and unstable economic policies at play, a paradigm shift towards Public Private Partnerships and supportive government policies is essential. By fostering an enabling environment for businesses, Nigeria can enhance local production, secure employment for its youth, and improve its economic indicators.
Original Source: businessday.ng
