The Chemical and Non-Metallic Senior Staff Association of Nigeria (CANMPSSAN) has urged the Federal Government to urgently intervene and save the sector from collapse over rising costs, unstable power supply and policy inconsistencies threatening both productivity and jobs.

The association noted that the sector was already on the verge of collapse, despite being one of the country’s critical industrial backbones.

It is regretted that industries were battling to remain in business in the tough environment.

CANMPSSAN President, Segun David, while speaking on the state of the sector, said that with Gross Domestic Product (GDP) growth projections between 2.6 per cent and 3.1 per cent this year, the sector was expected to see recovery.

However, he said the recovery was yet to materialise, with 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.”

He lamented that energy costs, particularly diesel and gas, had surged to alarming levels, further compounding the situation for manufacturers already struggling to stay afloat.

He added: “Diesel prices are currently between N1,950 and N2,050. 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 per cent of inputs sourced from abroad, exposing the sector to foreign exchange volatility.

“We are heavily import-dependent. 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.

He noted that, beyond taxation, inconsistent government policies and insecurity were also creating an unpredictable business environment, making long-term planning difficult for industry players.

This shift, he warned, was stifling growth and limiting the sector’s ability to contribute meaningfully to the national economy.