Insecurity, kidnapping hobble industries, increase Opex by 50%
AS insecurity mounts nationwide and kidnapping cases become rampant, manufacturers and industry stakeholders have expressed worry, saying business activities are being affected negatively while their operating costs have doubled significantly in providing added security and sourcing raw materials.
A recent Manufacturers Association of Nigeria ( MAN) CEO’S Confidence Index ( MCCI) Q2 2023 report, ranked scarcity/ unavailability of raw materials fourth on their major manufacturing challenges. Insecurity ranked 12th on the list.
Managing Director of Kazih Kits Limited and Kazih Community admin, Dr Chinedu Otakpor- Azih, regretted that the surge in insecurity has dealt a heavy blow to their operations, spiking the cost of raw materials as sourcing has become riskier.
“Chinos material skyrocketed overnight to an astonishing N60,000 for a bale from less than N30, 000 and our supplier said it is because of security challenges and the bad exchange rate. Procuring raw materials has become a risky endeavor and travel, which was once a routine, is now a gamble.
“To safeguard our factory, we have had to enlist private guards for roundthe- clock protection and liaise with the police in our area. All these have increased our costs by at least 50 per cent, in addition to what we are dealing with already and I am pleading with the government to improve security, engage with our community members to forge collaborative solutions. Together, we can navigate these challenges and secure a resilient future for lives and property,” she said.
Industrial security expert, Kolade Muhammed Awoniran of Arcfyre International, said his journey management and executive protection business has been particularly affected.
Awoniran regretted that there has been a significant reduction in productivity as business travels have reduced significantly.
She noted: “Obviously, other countries’ consular offices have advised their prospective travelling citizens on the current security situation in Nigeria. The federal government needs to rejig the security architecture with priority given to intelligence gathering. Also, we need a standard Geographic Information System ( GIS), remote sensing and Global Positioning System ( GPS) so we can develop forest mapping of all regions of the country and continuous military action and tactical site exploitation. Local hunters and quasi- regional security outfits have helped deal with security matters as the police are outnumbered.”
Creative Director, Fashion by Ashani, Tolulope Gbeyide, regretted that sourcing raw materials has become almost impossible as a lot of needed raw materials from the outskirts and villages have become inaccessible due to insecurity, scarcity and the poor economy.
“The insecurity situation is overwhelming; it has reduced productivity totally and created an atmosphere of uncertainty. Workers are afraid to work at night or even early in the morning, for fear of being attacked or kidnapped. Please we need the government to step in by fostering development, growth and improving security to encourage businesses. The present state of things is very discouraging and is no wonder many businesses are folding up,” he said.
Chief Executive Officer ( CEO), Le Mark Global, Tunde Mustapha, pointed out that the worsening insecurity and fear of kidnapping has psychologically impacted his employees, affecting their morale and productivity. “because of the nature of what we do and where we operate, frequent security threats such as kidnappings and attacks have created a sense of fear and uncertainty among my workers. Worse, some of our staff have become displaced, resulting in a shortage of skilled labour and disrupting our business operations considerably.”
Sanni Lasisi of SL Intel, posited that the increasing level of insecurity nationwide has had a significant impact on both the budget for security and the productivity of many businesses. He urged the government to prioritise security spending and allocate sufficient funds to enhance law enforcement agencies and equip them with modern technology.
Further urging the government to focus on addressing the root causes of insecurity, such as unemployment, poverty, and social inequality, he said by implementing effective social intervention programs, providing skill development opportunities and promoting job creation, the government can reduce the desperation that often leads individuals towards crime.
He concluded by saying that addressing increasing insecurity requires a multifaceted approach.
“By prioritising security spending, fostering publicprivate partnerships, investing in physical security measures, addressing root causes of insecurity and engaging the community, we can create a safer environment for businesses to thrive. It is through these combined efforts that the nation can combat insecurity, protect businesses and their productivity, and ultimately ensure the well- being and prosperity of its citizens.”