It is no longer news that companies, factories and other business establishments have been shutting down operations in Nigeria owing to the tough business environment.
However, The Point’s findings revealed that one of the agonies the development is creating is that some of these abandoned companies have turned to hotbeds of criminalities as robbers feast on the building accessories and fittings, carting them away in droves and also hibernating around the abandoned facilities.
The situation has become a source of worry for residents who stay around these abandoned business facilities even as the activities of miscreants and robbers have been lamented by security agencies.
Some of the industries abandoned many years ago have not been resuscitated by the government even as new moribund companies continue to spring up.
Last year alone, no fewer than six Nigerian companies reportedly stopped operations in the country.
Lingering issues such as foreign exchange scarcity, inadequate power supply, port congestion, multiple taxation, insecurity, and deficient infrastructure have affected many businesses, especially in the manufacturing sector.
Apart from the local companies, several foreign operators have been announcing plans to exit Africa’s biggest economy. Among these foreign establishments are GlaxoSmithKline Consumer Nigeria, Equinor, Sanofi, Bolt Food and Procter & Gamble.
The country’s inflation rate has accelerated to the highest level in 18 years largely on the back of the Federal Government reforms such as the removal of petrol subsidy and naira devaluation.
With over 300 distributors nationwide, MABISCO, an indigenous biscuits company in Ogun State ceased operations in March, 2023. Five months later, 54Gene, a genomics startup shut down in September, ending its 4-year existence in Nigeria.
Other companies that collapsed businesses last year included Lazarpay, Jubilee Syringe Manufacturing Company, DropX, Okadabooks among others.
Recently, the Manufacturing Association of Nigeria reported a concerning trend within the industry, revealing that about 767 manufacturing companies shut down operations while 335 experienced distress in 2023.
This development is attributed to various economic difficulties, including exchange rate volatility, rising inflation, and a general worsening of the investment climate.
These adversities have taken a toll on the manufacturing sector, significantly impacting its performance and sustainability.
Meanwhile, checks revealed that after crippling business activities in some of these facilities, the buildings are deserted, most often without adequate security to protect the leftover utilities and fittings.
It was gathered that criminals take advantage of the abandonment of the structures to perpetrate crimes and use the deserted buildings as hideouts.
For instance, the total neglect of the Nigerian Machine Tool and Osogbo Steel Rolling is causing serious concern to many Nigerians, especially to those who stay around the company.
The two big establishments owned by the Federal Government are situated adjacent to each other along Ikirun road in Osogbo, the capital of Osun State.
It was gathered that shortly after their establishment in 1983, the government and the builders signed an agreement on how to train workers that would later take over the daily operations of the companies.
The Steel Mill has a complex and housing facilities for selected workers who were employed to work there.
According to findings, the Steel Mill and Nigerian Machine Tool, if properly managed and put to use, would employ over 20,000 people.
Sadly, the Steel Mill has been abandoned for years and has become a hideout for criminals and a place that harbours reptiles. The aim and objective of establishing the company was purposely to produce steel and rod.
Both companies which were national assets were sold to private investors by the administration of former President Olusegun Obasanjo through the Bureau of Public Enterprise which was reportedly chaired by the former Vice-President Atiku Abubakar during tenure of the former Governor Olagunsoye Oyinlola of Osun State.
The Osogbo Steel Rolling Mill has remained moribund while the Nigerian Machine Tools has continued to render skeletal services to the people.
Their cardinal objectives had since been defeated following a long time abandonment which, investigation revealed, was caused by the privatisation. After the companies were reportedly sold to private individuals, they failed to properly manage them very well, thereby defeating their purposes.
The Point’s visit to the site of the Steel Rolling Mill, showed that the place has been overgrown with weeds as no human being was found at the premises of the company. The entrance gate was under lock and key.
Also, our correspondent was at the Nigerian Machine Tool and there was no sign of operation.
The abandonment of these companies has resulted in loss of employment for thousands of people of Osun and deprived the government of revenue generation. It has also deprived Nigeria of materials for industries to create employment for the people.
A mechanic close to the Steel Rolling Mill who simply identified himself as Akeem said the company had been abandoned for over 15 years.
“As I speak with you most of the machines and equipment the company was using before are now moribund and because they lie unused, thieves visit these companies to steal them.”
According to him, the moribund company was recently visited by the State Governor, Ademola Adeleke to assess the situation with a view to finding a solution and possibly bring it back to life.
He said, “I live around this area and I must tell you that in the last five months, there have been four different robbery operations at the companies. This place has long been abandoned during the then Governor Olagunsoye Oyinlola and the regime of President Olusegun Obasanjo. If the company, especially Steel Rolling Mill, is functioning it would have employed many jobless youths in our community and save us from these incessant robbery attacks because those who are coming to cart away the leftover property would have been employed there.”
Akeem blamed the privatisation on the reason why the company folded up, saying if the Federal Government is ready to resuscitate it, it must first review the privatisation processes and ensure that ailing companies are brought back to life.
Also speaking, Jimoh Akanbi, a resident in the area, hinted that the abandonment of those companies has been threatening the security of the host community.
“Before, we used to lament that the abandonment of the companies worsened unemployment in this state, but, presently, our lives are not secure anymore.
Armed robbers now take advantage of the abandonment of these facilities to terrorize us. Often, we do hear exchange of gunshots between security agents and criminals who have come to remove some expensive equipment. Few weeks ago, some suspected armed robbers were shot dead while robbing the companies,” he said.
Those who spoke with The Point called on the state and Federal Government to put the companies into good use and save residents of the area from frequent robbers’ invasion.
Also, Ajuwon community in the Ifako-Ijaiye Local Government Area of Lagos State is known to be a boisterous business and residential location for many residents.
However, an abandoned building on 46 Fagbohun Street, adjoining the every-busy Alagbole-Akute Road, has attracted much public attention lately.
The building, popularly called ‘Ile Nla’ (big house), is a large one-storey structure reportedly built about two decades ago but was abandoned by its owner apparently due to the deplorable state of the road leading to the area.
According to a statement signed by the Ifako Ijaiye Council Manager, Adesanya Adegbenro, last March, the building had degenerated into a haven for criminals and had become a security threat to residents.
The statement read, “The owner of ‘Ile Nla,’ an abandoned building located on 46, Fagbohun Street at Ajuwon in (the) Ifako Ijaiye Local Government Area of Lagos, is hereby directed to report to the council secretariat over the state of the property.
“The massive building has become a haven for criminals and their nefarious activities for over 30 years. The development is posing a security threat to the community and its residents.
“Consequently, in a bid to ensure the security of life and property in the area, the local government will legally begin the process of taking over the building for public use, if the owner fails to show up within two weeks after this publication.”
It was learnt that the owner of the house, whose name was given as Mr. Segun, resides in Abuja but made the building available as a shelter to indigent persons who could not afford accommodation.
Following the announcements made by the Ifako-Ijaiye council in print and also on radio stations, it was gathered that the owner of the house visited the building and issued an evacuation notice to all its occupants.
In October 2023, the Nigerian Institution of Estate Surveyors and Valuers, Lagos State branch, called on the state government to take possession of abandoned buildings.
The Chairman of the institute, Gbenga Ismail, said an investigation was needed to understand why the buildings were abandoned.
He said, “Abandonment can occur in cases of lack of funds, people are oblivious of what is happening with the property owner; we have to investigate why these buildings are abandoned.
“However, for those that the owners cannot be found again, the government should take them over, re-acquire them, and put them back into the mainstream to generate revenue, that way abandoned properties would be reduced.
“Buildings cannot remain untouched and unused for a length of time; there is a law that says that if a building has not been used for over 12 or 15 years, then something needs to be done about it.”
In the same vein, the Honorary Publicity Secretary of the NSEIV, Lagos branch, Abidemi Ojo, also noted that the prevalence of abandoned buildings could be a resultant effect of the cost of construction.
He said, “After doing a critical analysis of the buildings, those properties can be bought over by the government from the owners, and a publication can be made in this regard because people are struggling to get to the completion of the buildings.
“In addition, there are slum areas which came to being as a concept of illegality because of the lack of planning. The government can also buy these places, and then compensate the owners, and after buying them, they can be made into a new city with lots of green bridging the affordability gap.”
