NECA seeks FG, Lagos govt’s intervention over closure of factories

Lagos State governor, Babajide Sanwo-Olu

The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government and the Lagos State Government to urgently intervene in the closure of manufacturing and commercial facilities along the Dopemu industrial corridor, warning that the development threatens thousands of jobs, investments and Nigeria’s industrial stability.

The employers’ body made the appeal following the enforcement of a warrant of possession issued by the Lagos State High Court Sheriff’s Department on July 30, 2026, over a longstanding land dispute that has resulted in the shutdown of several businesses in the area.

The Association urged the Federal Government, through the Nigerian Investment Promotion Commission (NIPC) and the Federal Ministry of Industry, Trade and Investment (FMITI), alongside the Lagos State Government, to convene all parties involved to work out an interim arrangement that would allow legitimate business activities to continue while the courts determine the matter.

Director-General of NECA, Adewale-Smatt Oyerinde, stressed that the Association was not seeking to interfere with the judicial process but was concerned about the wider economic implications of the prolonged closure of productive enterprises.

He said that while NECA fully respected the independence of the judiciary and the rule of law, there was an urgent need to protect businesses employing thousands of Nigerians from prolonged operational paralysis.

According to him, preserving jobs, investments and productive capacity should remain a priority for all stakeholders, especially at a time when manufacturers are already battling high energy costs, foreign exchange volatility, rising borrowing costs and weak consumer demand.

He said that every additional day factories remain shut would result in production losses, reduced workers’ incomes, disrupted supply chains, declining government revenue and increased uncertainty for both domestic and foreign investors.

The NECA boss further said that the situation could undermine the Federal Government’s industrialisation agenda, particularly the efforts aimed at promoting local manufacturing, import substitution, investment attraction and sustainable job creation.

“This is not merely about individual companies; it is about preserving Nigeria’s productive capacity and reinforcing investors’ confidence. Investors need assurance that while legal disputes are resolved through due process, legitimate businesses will not be exposed to avoidable economic dislocation capable of eroding years of investment and threatening thousands of livelihoods,” he said.

NECA, therefore, appealed to both the Federal Government and the Lagos State Government to facilitate an equitable interim arrangement that balances respect for judicial processes with the need to safeguard employment, sustain manufacturing activities and protect investor confidence.

The Association further said that Nigeria could not afford to lose productive enterprises and livelihoods when pragmatic interim measures could preserve economic stability without prejudicing the ongoing judicial proceedings.

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