21 Companies Shuts Down in Kano
The difficult economic climate has forced no less than 21 businesses to close operations in Kano State during the past three years.
A document from the state’s Manufacturers Association of Nigeria (MAN) disclosed that these businesses were in the manufacturing industry.
MAN claims that the Companies were primarily driven out of business by high tax rates, unstable power supplies, product counterfeiting, and importation.
Meanwhile, the vice chairman of the organized private sector (OPS) in Kano, Hamza Adamu, has put the total of the private companies that have shut their operations in Kano State at 54.
According to Adamu, these businesses are closing because of an array of factors including the government’s unfavorable economic policies,
a lack of support from the business community, and fierce competition, which has forced some of them to relocate to the southwest of the nation.
At the recent union meeting, Adamu reported that the majority of the companies lamented having to pay up to eighteen different taxes,
including levies on their moving trucks, land use taxes, and sanitation taxes. Other companies lamented the inadequate supply of electricity, which has forced them to spend more on diesel.
He revealed that five hotels, the majority of which were situated in Bompai, Challawa, and Sharada, as well as six chemical, plastic pipe, and
rubber shoe industries had closed over the previous two years, noting that some of them had built outlets in the south and were relocating gradually.
Adamu, who is also the textile union’s senior organising secretary, decried the fact that the state now only has two textile factories, as opposed to over thirty in the past.
According to him, imports and counterfeiting caused the majority of textile companies to close their doors.
He urged the state government to step in and implement intentional industrial policies that will help the industry recover and draw in new capital, creating jobs for young people and contributing to the decline in poverty and insecurity.
Mubarak Yarima, the chairman of the Trade Union Congress (TUC) for Kano State, stated that the majority of manufacturing and
processing companies were impacted because they require a lot of electricity to operate. However, he lamented that the lack of
electricity has forced these companies to spend a lot of money on diesel, which has forced them to close.
He said the union had engaged the state government on how the problem could be solved, and received the assurance that the electricity problem would be tackled.
Investigations revealed that some of the companies that have shut down include: B & B Leather Ltd, White Gold Ginnery
Ltd, A.B. Fairview Motors Nig. Ltd, Bally Plastic Ind., Triumph Nig. Ltd., Hanushi Manufacturing Ltd., HGB Company Ltd., Kafin Kafi Ltd., Kisma Industries Ltd.,Â
Lanyo Luggage & Travelling Bags Ltd., Mac Chucks Ltd., Mufex Nig. Co. Ltd., Rasa Industries Ltd., Regal Grandview Nig. Ltd., Rider Impex Allied Ltd.,
Wise Machine Nigeria Ltd., Rock Investment Construction & Works Ltd., Tofa Textile Ltd., African Textile Ltd., Angle Spinning Ltd., and Prosper Industry Ltd, among others.
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