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767 Nigeria’s Manufacturing Companies shut down, 335 became distressed in 2023 – MAN

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The Manufacturers Association of Nigeria has said that 767 manufacturers shut down operations while 335 became distressed in 2023.

This came against the backdrop of exchange rate volatility, rising inflation and other economic challenges that have worsened the investment climate.

MAN stated this in a statement issued yesterday by Director-General, Mr. Segun Ajayi-Kadir, titled, “MAN Expresses Grave Concerns over the Expatriate Employment Levy.”  It strongly  condemned the recently introduced Expatriate Employment Levy by the Federal Government.

The association said it was struck with disbelief, seeing that the levy runs contrary to President Bola Tinubu’s Renewed Hope Agenda and the kernel of his Fiscal Policy and Tax Reform initiative.

It warned that the EEL would certainly ruin the confidence President Bola Ahmed Tinubu was striving to build among domestic and foreign investors.

It described the latest levy as “punitive levy,” which was already “being perceived as a punishment imposed on investors for daring to invest in Nigeria and on indigenous companies for employing needed foreign nationals”.

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The statement said EEL “is potentially an albatross to the realisation of Mr. President’s private sector led economy aspirations and would certainly ruin the trust and confidence he is striving hard to build among domestic and foreign private investors”.

Ajayi-Kadir added, “The imposition of EEL poses 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 policy will surely undermine the administration’s determination to position Nigeria as an attractive global investment destination and may engender a cold welcome in Mr. President’s future foreign investment promotions endeavours, as well as undermine Nigeria’s efforts at becoming a hub for shared services centre and business process outsourcing.”

According to the statement, “The manufacturing sector is already beset with multidimensional challenges. In year 2023, 335 manufacturing companies became distressed and 767 shut down.

“The capacity utilisation in the sector has declined to 56 per cent; interest rate is effectively above 30 per cent; foreign exchange to import raw materials and production machine inventory of unsold finished products has increased to N350 billion and the real growth dropped to 2.4 per cent.

“Expatriates in Nigeria currently pay more than $2000 for CERPAC. The sector cannot afford another disincentive to increased investment and portfolio expansion.”

MAN stated that the levy would deter multinational companies from investing in Nigeria and setting up their regional headquarters in the country.

“Also, the levy will make Nigeria a more expensive location for global expertise that international companies require for their operations,” it stated.

“Overall, we risk slowing down knowledge and skills transfer to Nigerians and undermining a key avenue for the country to move up the technology ladder,” MAN added.

The manufacturers’ association was equally worried that the imposition of such a levy, which could have far-reaching implications for the country’s economy and potentially exert pressure on Nigeria’s currency, was introduced through a handbook, rather than a law enacted by the National Assembly.

MAN warned, “This levy may expose the federal government to a plethora of lawsuits that will distract government from the task of salvaging the current dire situation of our economy.

“Additionally, we already have laws that were promulgated to achieve the exact purpose for which the EEL was introduced. They include the Local Content Act, which guarantees the jobs of Nigerians, and the Immigration Act, which prescribes the primacy of consideration for Nigerians and imposes appropriate quota in the engagement of expatriate.

“Therefore, the EEL would amount to duplication and burdensome addition.”

MAN also expressed concern that EEL would contradict Nigeria’s international trade agreements and the obligations contained therein.

It stated, “For instance, Nigeria is a signatory to the African Continental Free Trade Area (AfCFTA) agreement. One of the pillars of the AfCFTA is the free movement of skilled labour across the continent, which is complemented by non-discriminatory measures against fellow Africans.

“Quite importantly, this could trigger retaliatory measures against Nigerians working across Africa and other nations of the world; frustrate regional integration efforts and portray Nigeria as a spoiler among her peers.”

The association, therefore, asked the president to give due consideration to its arguments and direct that the implementation of EEL be discontinued.

According to MAN, discontinuing the policy would be in the overall interest of the country’s economy and is urgently needed to reassure domestic and foreign investors of Nigeria’s commitment to an investment friendly environment and ease of doing business.

“Additionally, Mr. President should direct the Nigeria Immigration Service to refrain from enforcing compliance with the policy,” MAN said.

Ajayi-Kadir stated that while MAN fully supported policies aimed at promoting quality job opportunities for Nigerians, it would urge the president to consider the wider negative effect of EEL.

He stated, “A more effective and sustainable approach is for government to intentionally improve on its human capital development and incentivise companies to invest in developing local talent without compromising Nigeria’s ability to attract Foreign Direct Investment (FDI).

“MAN advises that it is extremely important that government institutionalise stakeholders’ consultations and engagement before important policies that could have far-reaching implications for our economy are made.

“This will allow for constructive input from the business community, who are able to support government initiatives and are the most impacted by the outcomes.”

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Gunmen attack Kogi orphanage, abduct 23 Pupils, Proprietor’s wife

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Gunmen have abducted 23 pupils and the wife of a school proprietor following an attack on an orphanage and school facility in the Zariagi area of Lokoja, Kogi State.

It was gathered that the incident, which occurred late Sunday, targeted a facility identified as Dahallukitab Group of Schools.

Confirming the development in a statement on Monday, the Kogi State Commissioner for Information and Communications, Kingsley Fanwo, said security operatives responded swiftly, leading to the rescue of 15 of the abducted pupils.

The commissioner disclosed that the school was operating outside regulatory oversight.

“The facility was operating illegally in a remote, bushy environment without registration with the State Government and without the knowledge of relevant authorities and security agencies,” Fanwo said.

According to him, efforts are ongoing to secure the release of the remaining eight victims and apprehend those responsible for the attack.

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“The Kogi State Government commends the gallantry, professionalism, and swift response of the Police and other security agencies for rising decisively to the occasion,” he added.

Fanwo warned against operating schools and orphanages in isolated areas without proper authorisation, describing such practices as dangerous.

“While the Government remains fully committed to ensuring the rescue of all victims, it is important to stress that the operation of orphanages, schools, and similar institutions in isolated and vulnerable locations, without proper registration and notification to relevant authorities, poses serious security risks, especially in the current security climate,” he said.

The commissioner further urged operators to comply with safety regulations.

“The Government strongly discourages such practices and reiterates the need for strict compliance with regulatory and safety protocols,” Fanwo said.

“All operators of such facilities are advised to engage with appropriate government agencies to ensure proper oversight, security assessment, and protection.”

The commissioner added that security agencies are working to bring the situation under control, noting that updates will be provided as operations continue.

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Gunmen kill pastor, wife, children in fresh Plateau attack

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Gunmen have attacked Gako Village in Riyom Local Government Area of Plateau State killing a pastor and three members of his family in what residents described as a renewed wave of violence in the area.

The victims were identified as Rev. Ayuba Choji, his wife, Chundung Ayuba, and their two children, Cyril and Endurance.

Residents said the attackers invaded the community at about 11 p.m., shooting sporadically and forcing people to flee into surrounding bushes for safety.

A community member, Martha Dalyop, described the incident as part of a recurring wave of violence that has left residents in constant fear, preventing many from sleeping in their homes or working on their farms.

Confirming the attack, the publicity secretary of the Berom Youths Moulder Association, Rwang Tengwong, said the assailants appeared to operate in coordinated groups during such raids.

Gunmen abduct 23 schoolchildren from orphanage home‎ in Kogi

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According to him, while one group attacks residents, others destroy farmlands or block escape routes to prevent intervention.

He also disclosed that large portions of farmland, including maize, cabbage and hot pepper crops, were destroyed in Kassa, Barkin Ladi Local Government Area, within the past 48 hours, worsening food insecurity in the region.

The latest killings have further escalated fears across Riyom and neighbouring communities, with residents calling on security agencies to intensify efforts to halt the ongoing attacks and protect rural populations.

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Three mourners killed, two abducted as gunmen lauch fresh attack in Benue

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Tragedy struck Sati-Ikov Council Ward in Ushongo Local Government Area of Benue State after armed men reportedly ambushed mourners returning from a burial ceremony, killing three persons and abducting two others.

Residents who spoke on Sunday said the attack occurred on Saturday night when the victims were returning home from a burial event in the community, plunging the area into fear and tension.

One resident, who spoke anonymously for safety reasons, said the attackers laid an ambush close to the community and opened fire on the unsuspecting mourners.

“Some mourners who were returning from a burial were attacked close to our community, Sati-Ikov, on Saturday night by local militias. Three of them were killed, and two others, a male and a female, were kidnapped,” the source said.

The attack has since been confirmed by the lawmaker representing Ushongo Constituency in the Benue State House of Assembly, Simon Gabo, who condemned the recurring violence in the area.

Gabo described the situation as disturbing, noting that the constituency has been experiencing repeated attacks in recent weeks.

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“I received a call from my people at about 4 am that they went for a burial and on their way back, they ran into armed men,” he said.

“The armed men shot and killed three of them and collected their bags. They also robbed some residents and kidnapped two people. The victims were all young men.”

He identified the deceased as Bem Msughter of Mbakyombo, Daav-Ikov; Aondo Chia of Mbamegh, Daa-Ikov; and Sunday Terwase of Mbakyor, Daav-Ikov.

The abducted victims were named as Aondongu Amos, a Point-of-Sale (POS) operator, and Mrs Arinze, an Igbo patent medicine dealer in the community.

Gabo, who also serves as Deputy Majority Chief Whip of the Assembly, lamented that his constituency had become a recurring hotspot for violent attacks.

He added that similar incidents had occurred just weeks earlier, leaving several residents dead.

“Apart from that, we have had one or two such incidents every other week,” he said.

The lawmaker alleged that the attackers often cross from neighbouring areas before striking and retreating into forested and mountainous terrain believed to provide cover for criminal activities.

“So they cross from there to our side, attack and return to their side. It is a mountainous area with large forests,” he explained, adding that the suspects were believed to operate from Katsina-Ala Local Government Area.

He further said he had reported the incident to security agencies, noting that police personnel had already been deployed to the area.

However, the Benue State Police Command had yet to issue an official statement on the incident as of the time of filing this report.

The latest attack adds to growing concerns over persistent insecurity in parts of Benue State, where rural communities continue to suffer repeated assaults and abductions.

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