A prominent industrialist and Chairman of the Ogun State Water Corporation, Chief Johnson Olu Fatoki, has said that worsening insecurity, poor infrastructure and high production costs are crippling Nigeria's manufacturing sector, leading to reduced production, job losses and declining investments.
Chief Fatoki, who is also the Board Chairman of the Ogun State Water Corporation, a member of the Governing Council of the Federal Polytechnic, Idah, Kogi State, former member of the Ogun State House of Assembly (2007–2011), and Chief Executive Officer of Olu Ventures Nigeria Limited, made the remarks during an interview with Nstv international crew while highlighting the challenges facing manufacturers across the country.
According to him, insecurity has significantly disrupted business operations, especially the movement of goods to Eastern,Northern part of Nigeria, where many manufacturers previously enjoyed a large market. He noted that attacks by bandits, kidnappers and other criminal elements have forced businesses to cut distribution, reduce production and, in some cases, lay off workers.
The businessman and the Oganla of Owu Kingdom explained that his company, which produces sachet and bottled water, Carol antiseptic soap, laundry soap, hotel-customised soap and imports industrial machinery, employs about 38 permanent workers. He lamented that the harsh business environment has made it increasingly difficult to sustain production despite efforts to keep the workforce intact.
Chief Fatoki said manufacturers now spend huge sums on private security escorts, diesel for generators and equipment maintenance because of poor electricity supply and the frequent collapse of the national power grid. He added that bad roads further expose transporters to attacks, increase delivery costs and make locally manufactured goods less competitive.
He called on the Federal Government to prioritise employment generation, provide affordable financing for manufacturers, reduce import duties on industrial equipment and ensure stable electricity supply. According to him, such interventions would lower production costs, boost local manufacturing and create jobs capable of reducing crime and insecurity.
The former lawmaker also urged governments at all levels to encourage investors by creating a conducive business environment instead of focusing mainly on tax collection.
Drawing from his visits to factories in India, Fatoki said government officials there first seek to understand manufacturers' challenges before discussing taxation, a practice he urged Nigerian authorities to emulate.
Speaking on industrial development, The Oganla commended the Ogun State Government for attracting more factories, particularly around the Agbara, Sango-Ota and Siun interchange industrial corridors. He also praised the state's support for security agencies through improved policing, patrol operations and collaboration with host communities, describing the efforts as encouraging but requiring sustained commitment.
He further advised manufacturers to embrace innovation, research and local sourcing of raw materials to remain competitive. Chief Fatoki disclosed that his company now sources about 95 per cent of its raw materials locally, reducing dependence on imports while supporting local suppliers. He maintained that strengthening local production, improving infrastructure and expanding employment opportunities remain the surest path to economic growth, investment and lasting security in Nigeria.
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