Segun Ajayi-Kadir, Director-General (DG) of the Manufacturers Association of Nigeria (MAN), has called for government officials to face consequences for implementing policies that devastate businesses and disrupt the economy.
Speaking during a forum themed ‘Nigeria’s Challenging Economy: Strategies for Recovery,’ organized by Channels Television in celebration of Nigeria’s 64th Independence anniversary, Ajayi-Kadir underscored the need for accountability within the government.
“There must be consequences for government officials who make policies that ruin businesses,” Ajayi-Kadir stressed. “I mean, you make a policy today, it becomes a disaster for industry, and government simply changes it, and you walk away. We don’t have this luxury in the private sector. If you make a mistake, your business is gone, and you could distrain your property. So, I think we need to see that movement also on the part of government.”
Ajayi-Kadir’s remarks resonate with a growing belief among Nigerians that policymakers act recklessly because they face no accountability for the economic damage their decisions often cause. Many have argued that the country’s policymakers are shielded from the consequences of their actions, unlike in the private sector where poor decisions are met with consequences.
Comparing the private and public sectors, it is believed that the former thrives and the latter deteriorates due to their different approaches to policymaking.
Interest Rates, Stifling Businesses and Productivity
Ajayi-Kadir also voiced concerns about the persistently high interest rates in Nigeria, which have made borrowing increasingly expensive for businesses. He described the rising interest rates, currently between 30-35%, as unsustainable, particularly in an economy where consumer purchasing power has been eroded by inflation, unemployment, and stagnant wages.
According to Ajayi-Kadir, many businesses are finding it nearly impossible to survive in such an environment.
“We should be able to assuage the challenges we are having with continuously raising interest rates,” he said. “You’ve done it for more than 18 months plus, and you’ve not done any impact assessment on the productive sector. I think you need to be able to insulate that sector so that you can inflate the economy.”
The ongoing increases in the monetary policy rate (MPR) by the Central Bank of Nigeria (CBN) are part of efforts to curb inflation, but Ajayi-Kadir noted that the CBN’s approach is undermining the productive sector. He pointed out that despite over 18 months of these rate hikes, there has been no comprehensive evaluation of their impact on the manufacturing sector or the broader economy.
The lack of impact assessments, according to the DG, is indicative of the disconnect between policy formulation and real-world business needs.
The Need for a Coordinated Industrial Policy
Beyond interest rates, Ajayi-Kadir highlighted the absence of a clear and consistent industrial policy to guide Nigeria’s economic recovery. He called for the development of a robust industrial policy that would provide long-term direction for the country’s industrialization efforts.
“There’s a need for an industrial policy to guide the government’s approach to industrialization,” he said.
According to the DG, such a policy would promote better coordination between key government ministries, including the Ministry of Industry, Trade, and Investment, the Ministry of Finance, and the CBN.
“I must say that policy coordination is extremely important for us because you can’t operate in such a way that you don’t know what to expect tomorrow. It will basically define where we want to be, and it will guide our operations,” he said.
Ajayi-Kadir’s comments reflect broader concerns in Nigeria’s business community about the unpredictable nature of government policies, which frequently change without warning, causing disruption and uncertainty in the marketplace.
For instance, in early 2020, the Lagos State government abruptly announced the ban on Bike-hailing startups, Gokada, ORide, MaxNG, and other commercial motorcycles (okada). The ban also affects Keke Napep (tricycle) operators within the state.
The decision eventually stifled the bike-hailing idea, which had made commuting in the state’s wild traffic easier, resulting in the loss of millions of dollars in investors.
Ajayi-Kadir argued that improved coordination between government ministries and agencies would prevent the kind of policy flip-flopping that has hurt businesses in the past.
Ineffective Nigerian Embassies and Lack of Economic Diplomacy
Another issue Ajayi-Kadir raised was the ineffectiveness of Nigeria’s embassies abroad in promoting Nigerian businesses and attracting foreign investments. He criticized the country’s embassies for not doing enough to facilitate market penetration for Nigerian products in foreign markets.
“There needs to be key performance indicators (KPIs) for our embassies to track their effectiveness in helping Nigerian products reach foreign markets and attracting foreign direct investment (FDI) to Nigeria,” he said.
Ajayi-Kadir emphasized that embassies should play a crucial role in economic diplomacy, helping to forge international partnerships that would boost Nigerian industries and increase the country’s foreign exchange (FX) inflows. However, without clear KPIs and accountability measures, embassies have largely failed to fulfill these roles.
While commending Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, for his efforts to stabilize Nigeria’s economy, Ajayi-Kadir urged the government to avoid playing politics with economic policies. He called for a more deliberate and coordinated approach to policymaking.
