The Chemical and Non-Metallic Senior Staff Association of Nigeria (CANMPSSAN) has called on the Federal Government to urgently intervene to prevent the sector's collapse, citing rising costs, unstable power supply, and policy inconsistencies that threaten both productivity and employment.
The association noted that the sector, a critical industrial backbone, is on the verge of collapse, with industries struggling to survive in a tough business environment.
CANMPSSAN President Segun David, speaking on the sector's state, said that despite GDP growth projections of 2.6% to 3.1% this year, recovery has not materialized, and growth remains nearly impossible.
At the heart of the crisis, he explained, is Nigeria's unreliable power supply, marked by frequent national grid collapses that force companies to rely heavily on private power generation. "The constant grid failure has pushed industries to depend on generators, which come at a very high cost. This is not sustainable for any serious manufacturing sector," he noted.
He lamented that energy costs, particularly diesel and gas, have surged to alarming levels, compounding the situation for manufacturers. "Diesel prices are currently between N1,950 and N2,050. When you add that to the cost of gas, it becomes clear why many companies are struggling to survive," he added.
David also highlighted the heavy dependence on imported raw materials, with over 70% of inputs sourced from abroad, exposing the sector to foreign exchange volatility. "We are heavily import-dependent. Fluctuations in foreign exchange and the depreciation of the naira have significantly increased the cost of raw materials and shipment," he said.
He pointed to multiple taxation and levies imposed by various government agencies as major obstacles to doing business in Nigeria. Beyond taxation, inconsistent government policies and insecurity create an unpredictable business environment, making long-term planning difficult.
This shift, he warned, is stifling growth and limiting the sector's ability to contribute meaningfully to the national economy.
