Over 100,000 workers in the chemical and non-metallic products sub-sector lost their jobs in 2023.
The affected companies comprise of multinationals, medium, and small businesses, which employed about 350,000 people across the country.
It was learnt that while 50 of such companies have closed shop or relocated to other countries, another 50 including multinationals, medium and small-scale enterprises, SMEs, and other member-companies are on the verge of shutting down or operating at low-capacity utilisation.
Industry sources told Vanguard that over 100,000 workers have lost their jobs directly and indirectly in the last year.
The firms in this sector produce medicals, pharmaceuticals, perfumes, cosmetics, toiletries, soaps, detergents and vegetable oil, hydraulics, cement, asbestos cement and concrete.
Other products include glass, ceramic, earthenware, clay products, basic industrial organic and inorganic chemicals, fertilizers, explosives, fireworks, footwear, leather, and rubber.
Among the companies that have shut down are Glaxo SmithKline Beecham, Procter & Gamble, Mega Plastic Nig limited, Twinstar Nig limited, and Femina Hygienical Products Nig. Limited and Linda Manufacturing Company.
Those on the verge of shutting down include Unilever, PZ Industries, Prime Pack, and Reckitt & Benckiser.
One of the companies about to shut operations in Nigeria is Kimberly-Clark because of high energy costs, expensive raw materials, and reduced customer demand.
The company, it was gathered, has reduced shifts and implemented other cost-cutting measures in a bid to remain afloat.
The company’s $100 million factory, located in Ikorodu, Lagos State, was commissioned two years ago by former Vice President Yemi Osinbajo to produce diapers and sanitary pads, among others.
Lamenting the plight of the sector, Executive Secretary of CANMPEF, Mr Olorunfemi Oke, said the exits were painful.
He added that more worrying is the fact that challenges faced in the sector were inflicted by government policies.
According to him, the challenges confronting the sector are floating of the naira, depreciating currency and volatile exchange rate, fuel subsidy removal, high exchange rate for computation of import duty.
Others, he added, are high interest rate, epileptic power supply with the recent increase in tariff that has tripled electricity bills and made it unsustainable for businesses; and inadequate gas supply for firms, and high cost of diesel.
He also named poor road conditions, multiple taxations, a high inflation rate of over 34 per cent, weak consumer purchasing power, and insecurity across the country.
