Many small and medium-scale manufacturers in Nigeria's chemical and food sectors are running far below capacity due to surging import costs and weakening consumer demand, according to organised labour.
President of the National Union of Chemical, Footwear, Rubber, Leather and Non-Metallic Products Employees (NUCFRLANMPE), Bolarinwa Sunday, said the country's current economic direction, shaped by market-driven reforms and global financial institutions, is strangling local industry.
"This government is operating in a capitalist economy that is completely anti-poor," Bolarinwa told Daily Sun's Workforce, lamenting policies that prioritize revenue generation over industrial growth and social welfare.
He said the reality on the ground is harsh for small business owners: foreign exchange is scarce, energy costs are unbearable, and consumers no longer have purchasing power. "The average factory can't plan or produce because they can't get forex for raw materials. Even when they manage to produce, the prices are too high for the average Nigerian."
According to him, the ripple effect has been devastating. From emptying supermarket shelves to silent factory floors, the pressure on SMEs is growing. "Nigerians no longer watch DSTV; they go for GOTV. People don't buy milk as before. Consumption is dropping."
Read also
He also took aim at multiple taxes, increasing electricity tariffs, and rising banking charges, saying they erode profitability and hinder the ability of small businesses to grow or retain workers. "Everyday they increase electricity tariffs. And banks? You get charged for everything—ATM, transfer, account maintenance. What are they even maintaining?"
Bolarinwa criticised how intervention loans meant to support small producers and farmers are often diverted to politically connected individuals. "The real farmers never see the money. It's just photo ops and abandoned projects."
Calling for a more inclusive economic model, he advocated for policies that shield productive sectors and prioritize real entrepreneurs. "We need subsidised electricity, low-interest loans, and genuine protection for local businesses. This country can't survive if we keep punishing the producers."
He warned that if Nigeria continues on its current path, more factories may shut down, jobs will be lost, and the small business backbone of the economy will further erode.
