Aarti Steel Nigeria has reportedly shut down operations in the country, citing economic pressure as the reason for its decision.
The company which produces roofing sheets has been in business in Nigeria for more than 10 years, establishing itself as a reliable business partner for numerous customers in the country and beyond.
“Aarti Steel Nigeria which has been into roofing sheet production for many years with considerable market footprints may finally be saying goodbye to Nigeria,” PREMIUM TIMES quotes sources as saying.
“The Ota, Ogun State-based Steel plant has allegedly not been operating smoothly for almost a year with intermittent production which made it impossible for the company to meet the funding requirements for the continuation of its operations.
“A source hinted that the impact of severe indebtedness due to forex exchange losses, adverse economic policies and other factors which depressed the local pricing mechanisms forced the company to sell at a price lesser than its cost of production.
“These factors were said to have been primarily responsible for the shut-down of the plant.”
PT added that the source further disclosed that two major steel companies in Nigeria and a few Indian steel firms have expressed their interest in buying the closed plant.
They are also planning to continue Aarti Steel's operation in a bid to save thousands of direct and indirect jobs associated with its value chain.
Meanwhile, the Labour Party (LP) candidate during the 2023 presidential election, Peter Obi, on Monday lamented the exit of various multinational companies from Nigeria.
“I am compelled to address the alarming exodus of multinational companies from Nigeria, which has cost our nation a staggering N95 trillion in the past five years,” Obi wrote on X.
“According to The New Telegraph, in the last year alone, over ten multinational giants such as GlaxoSmithKline, Equinor, Sanofi-Aventis, Bolt Food, Procter & Gamble, Jumia Food, PZ Cussons, Kimberly-Clark, Diageo and others, have exited Nigeria, citing eerily consistent reasons.
“According to The PUNCH, “Multinational firms exit Nigeria over harsh business climate.” The Guardian reports, “Insecurity, high energy costs force companies to leave Nigeria.” The Nation states, “Poor business environment, inconsistent policies drive companies out of Nigeria.
“These companies have highlighted the same problems across the board. It is clear these issues are not coincidental but symptomatic of a larger governance problem. Why are we not facing and solving these problems head-on?”
