Nigeria's Northeast is bleeding factories — and the numbers are worse than most people realise.
The Director-General of the Manufacturers Association of Nigeria (MAN), Dr Segun Ajayi-Kadir, has confirmed that approximately 60 per cent of factories in the Northeast have ceased operations due to persistent insecurity.
He made the disclosure during a meeting with the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Lagos.
What Is Driving the Collapse
Insurgency and banditry have created a compounding crisis across the region.
Supply chains have been disrupted, production costs have surged, and manufacturers have relocated en masse — leaving entire industrial zones hollowed out.
"The closure of factories has not only resulted in thousands of job losses but has also exacerbated poverty levels and limited opportunities for residents in the affected areas," Ajayi-Kadir stated.
Investors Are Walking Away
Beyond the factories already shut, the forward-looking picture is equally troubling.
New investors are increasingly unwilling to set up or expand in the Northeast — citing safety concerns for both capital and personnel as dealbreakers.
Facilities that remain standing are largely underutilised, operating well below capacity in an environment where full-scale production carries real physical risk.
The Human Cost
The economic damage extends far beyond balance sheets.
Thousands of direct manufacturing jobs have been lost. Local supply ecosystems — transport, logistics, raw material suppliers — have collapsed alongside them. Poverty levels in affected communities have deepened as a direct consequence.
For context on how insecurity intersects with Nigeria's broader economic reform agenda, this week's CBN Business Expectations Survey flagged insecurity as the number one constraint on business confidence nationally — a finding that MAN's data now puts in sharp relief.
What MAN Is Calling For
Ajayi-Kadir outlined a clear set of demands directed at the federal government and security agencies.
He called for an urgent restoration of peace and stability across the Northeast, arguing that security is not just a social imperative — it is the prerequisite for any meaningful industrial recovery.
Beyond security, MAN is pushing for targeted support measures for affected industries: enhanced infrastructure, better access to financing, and incentive packages designed specifically to rebuild the region's industrial capacity.
The association believes that with the right conditions, displaced manufacturers would return — and new investors would follow.
A Region With Unrealised Potential
Ajayi-Kadir expressed cautious optimism about what the Northeast could become under the right conditions.
He described the region as a potential vital hub for manufacturing and commerce — one that insecurity has simply prevented from realising its economic destiny.
He also acknowledged that President Tinubu's economic reforms are beginning to yield results nationally, while noting that economic saboteurs continue to blunt the impact of those reforms on ordinary Nigerians.
The MAN director-general also credited the Dangote Refinery for helping ease pressure on domestic petroleum prices — particularly significant given ongoing tensions in the Gulf region that have kept global oil markets volatile.
For entrepreneurs and investors looking at Nigeria's manufacturing landscape, the side hustle in Nigeria guide and business ideas 2026 guide explore sectors where ground-level opportunity still exists despite macro headwinds.
The Bottom Line
Six in ten factories silent. Investors gone. Jobs lost. Poverty deepening.
The Northeast's industrial crisis is not a distant policy problem — it is an active economic emergency, and MAN is demanding the government treat it like one.
Source: Manufacturers Association of Nigeria (MAN) Director-General Dr Segun Ajayi-Kadir, speaking at a CICAN meeting in Lagos, June 2026. Additional context via BusinessDay Nigeria and The Punch.
Reported by the WealthBlueprint NewsDesk — delivering institutional-grade financial intelligence for the modern investor.