Save our industry now: CANMPSSAN urges FG as costs, power crisis threatens jobs

Nigeria’s chemical and non-metallic industries are teetering on the edge, with rising costs, unstable power supply, and policy inconsistencies threatening both productivity and employment, President of the Chemical and Non-Metallic Senior Staff Association of Nigeria (CANMPSSAN), Segun David, has warned.
Speaking on the state of the sector, David issued a strong call to action, urging government at all levels to intervene urgently to prevent further decline in one of the country’s critical industrial backbones.
“Our sector is expected to see a recovery, with GDP growth projections between 2.6% and 3.1% this year, but we are not seeing that materialise,” David said. “Instead, industries are battling conditions that are making growth almost impossible.”
At the heart of the crisis, he explained, is Nigeria’s unreliable power supply, marked by frequent national grid collapses that have forced 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,” he noted. “This is not sustainable for any serious manufacturing sector.”
Energy costs, particularly diesel and gas, have surged to alarming levels, further compounding the situation for manufacturers already struggling to stay afloat.
“Diesel prices are currently between ₦1,950 and ₦2,050,” David revealed. “When you add that to the cost of gas, it becomes clear why many companies are struggling to survive.”
The dependence on imported raw materials is another major burden, with over 70 percent of inputs sourced from abroad, exposing the sector to foreign exchange volatility.
“We are heavily import-dependent,” he said. “Fluctuations in foreign exchange and the depreciation of the naira have significantly increased the cost of raw materials and shipment.”
David also pointed to the impact of multiple taxation and levies imposed by various government agencies, describing them as a major obstacle to doing business in Nigeria.
“Manufacturers are being taxed from all directions,” he lamented. “These overlapping levies only increase the cost of production and discourage investment.”
Beyond taxation, inconsistent government policies and insecurity are creating an unpredictable business environment, making long-term planning difficult for industry players.
“You cannot plan effectively when policies keep changing,” David added. “Coupled with insecurity, it creates uncertainty that scares away both local and foreign investors.”
The sector is also grappling with a shortage of skilled workers, alongside what David described as the growing casualisation of labour, which undermines job security and workforce stability.
“These challenges are interconnected,” he explained. “When businesses are under pressure, they cut costs, and unfortunately, workers bear the brunt.”
According to him, the combined effect of high energy costs, poor infrastructure, and regulatory pressures has significantly reduced productivity across the industry.
“Operational costs have escalated sharply,” David said. “Companies are now diverting funds meant for expansion into alternative energy sources just to stay operational.”
This shift, he warned, is stifling growth and limiting the sector’s ability to contribute meaningfully to the national economy.
“When businesses cannot expand, they cannot create jobs,” he stressed. “Instead, they begin to scale down operations.”
In many cases, companies are being forced to take drastic measures, including laying off workers to manage rising costs.
“When the pressure becomes unbearable, redundancy becomes inevitable,” David said bluntly. “It is a painful reality we are already witnessing.”
He also raised concerns about the role of technological advancement and automation, noting that while innovation is necessary, it could further threaten jobs if not properly managed.
“Automation is influencing job roles,” he acknowledged. “Without proper planning and reskilling, it could lead to job losses in an already strained sector.”
David concluded with a passionate appeal to policymakers, urging immediate and coordinated action to address the sector’s challenges and safeguard jobs.
“This is a critical moment,” he said. “If urgent steps are not taken to stabilise power supply, address policy inconsistencies, and reduce the cost of doing business, we risk losing not just industries, but the livelihoods of thousands of Nigerian workers.”