Lagos, March 6, 2024 – A total of 767 companies were shut down while 335 were distressed in Nigeria in 2023.
The Manufacturers Association of Nigeria (MAN) said this in a statement on Wednesday.
It attributed the situation to exchange rate volatility, rising inflation and other economic challenges that have worsened the investment climate.
The association condemned the recently introduced Expatriate Employment Levy (EEL) by the Federal Government.
It said the levy ran contrary to the Renewed Hope Agenda, the fiscal policy and tax reforms of the current administration.
“The imposition of EEL poses a 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 the year 2023, 335 manufacturing companies became distressed and 767 shut down.
“The Expatriate Employment Levy may cause unintended consequences that may trigger the relocation of foreign companies to neighbouring countries that present a more conducive and less expensive environment for business.
“The imposition of this levy may likely spark retaliatory actions taken by other countries by imposing levies on foreigners and particularly targeting Nigerian workers.
“This will in turn affect diaspora remittances from Nigerian workers resident in other countries.” (GBN)
