As thousands of factories sit idle and refineries worth billions produce nothing, experts are rallying to chart a rescue plan for the nation’s moribund assets.

Nearly half of Nigeria’s industrial capacity lies dormant. Factories that once hummed with activity now stand silent. Warehouses overflow with unsold inventory, while skilled workers remain at home without jobs.

The numbers tell a devastating story. Manufacturing capacity utilization hovers around 55%, non-performing assets total approximately ₦2 trillion, and 80% of small and medium enterprises (SMEs) collapse within five years.

Yet, within this crisis lies immense opportunity. Experts believe that if even 20% of these moribund assets were revived, it could create hundreds of thousands of jobs, generate billions in economic activity, and strengthen Nigeria’s industrial base. The question is no longer whether these assets can be saved—it is whether the country has the will to do it.

This challenge took center stage when financial leaders, policymakers, investors, and turnaround specialists gathered to confront Nigeria’s industrial decline head-on.

 

 Charting a Path to Revival

 

The Turnaround Management Association of Nigeria (TMA), in partnership with Konrad Adenauer Stiftung Nigeria (KAS), hosted a two-day conference at Eko Hotel in Lagos. Themed “Reviving Moribund Assets: The Role of Turnaround Management in Nigeria’s Economic Recovery Strategy,” the event sought to explore practical solutions for economic revival through the strategic rescue and recovery of distressed companies and assets.

The End of ‘Business as Usual’

Dr. Steve Ogidan, President of Turnaround Management Nigeria, opened the conference with a stark warning: “Business as usual” is a recipe for failure in today’s challenging environment.

He noted that in Nigeria, 80% of SMEs fail within five years, setting the tone for urgent reform. Referring to the Bank of Industry’s recent ESG report launch, Dr. Ogidan emphasized that businesses are now judged beyond profitability. “Social responsibility has become crucial; profits follow ethical and sustainable practices,” he stated.

The challenges are indeed staggering. Manufacturing utilization stagnates at 55%, non-performing loans exceed ₦1.3 trillion, and youth unemployment remains above 33%. Yet, Dr. Ogidan interprets these statistics as signals of potential rather than despair.

“With over 65% of Nigeria’s 220 million people under 40, there is abundant energy and opportunity,” he said. “The key concern is whether industries can absorb this workforce.”

He advocates a mindset shift, declaring that “the philosophy of turnaround management views crises as opportunities for transformation.” By systematically applying these principles, he believes Nigerian enterprises can convert obstacles into unprecedented growth.

Instead of surrendering struggling companies to liquidation, Dr. Ogidan urged revamping their management teams. This strategy, he stressed, requires discipline, expertise, and a new mindset.

 

A State Takes Action

Meanwhile, state governments are also beginning to act. Nazir Halliru, Director General of the Kano Investment Company, arrived at the conference armed with data and a clear commitment.

Kano State’s geo-mapping exercise revealed a sobering truth: over 1,000 inactive industries out of approximately 3,600 in the region. These figures represent far more than statistics—they signify lost livelihoods, idle investments, and weakened communities.

Halliru announced that Governor Alhaji Yusuf intends to collaborate with stakeholders and the Bank of Industry to revive these industries, stimulate economic growth, create jobs, and strengthen community resilience. Importantly, he noted, this effort would also help address insecurity, underscoring that reviving industries is not just an economic imperative—it is a security necessity.

 

 The Real Problem Isn’t Money, It’s Management

When Alhaji Adamu Abdulqadir Gambo, Vice President of TMA North, moderated a panel on reviving moribund assets, the discussion swiftly shifted from capital to competence.

“These are not just statistics,” Gambo asserted. “They represent factories with silent machinery, warehouses filled with unsold goods, and workers without jobs.”

The panel—comprising Dr. Victor Dike of Quick Project Limited, Dr. Haggai Gutap, CEO of Fingertips Enterprise Development Partners, and Dr. Naomi Omoduemuke, Managing Partner at Into Consult—offered candid assessments that resonated deeply with the audience.

According to Dr. Dike, many entrepreneurs wrongly assume capital is their biggest hurdle. Drawing from banking experience, he said loan officers often ask, “Where did your previous capital go?” before approving new loans. The priority, he argued, should be demonstrating improved management capability before requesting additional funding.

He added that scaling from ₦50 million to ₦2 billion requires not just more money, but greater managerial capacity and discipline.

Dr. Gutap contributed a microfinance perspective, revealing that non-performing loans in the microfinance sector often surpass those at the Bank of Industry. Many borrowers, he noted, perceive loans as grants, leading to poor repayment discipline. He proposed financial education as the cornerstone for improving sustainability.

Dr. Omoduemuke spotlighted cultural challenges such as nepotism and reluctance to seek expert help. Hiring unqualified family members and ignoring professional advice, she said, threaten business stability. “Staying ahead of social media and technology trends is vital to survival,” she added.

Despite the challenges, the panel applauded the rise of fintech platforms like OPay and Moniepoint, which have enhanced financial inclusion and reduced transaction times—though they acknowledged that risks still remain.

 

 The Skills Gap Holding Nigeria Back

On the conference’s second day, Mr. Akinyele Aluko, MSME Consultant and former Director at the Lagos Chamber of Commerce, presented groundbreaking research explaining why so many Nigerian businesses falter from inception.

“Nigerian universities produce over 600,000 graduates yearly,” he revealed, “yet 50% are unemployed or underemployed, and few possess industry-ready skills.”

Strategic planning remains another critical shortfall. Only 25% of Nigerian SMEs have written business plans, meaning three-quarters operate without a roadmap. Combined with a $158 billion MSME financing gap and the fact that only 5% of bank credit reaches SMEs, it becomes clear why failure rates remain high.

Nevertheless, Aluko offered proven solutions. He shared success stories, such as a Lagos-based manufacturing SME that cut training costs by 60% through partnerships with technical colleges and achieved an 80% employee retention rate.

He proposed an integrated approach combining industry-academia collaboration, enhanced vocational training, subsidized consulting, and innovative financing. In the medium term, he urged peer learning networks and business development services, while in the long run, he emphasized STEM-focused education reform and a National MSME Development Strategy.

“The cost of inaction is too high—continued stagnation, unemployment, and missed opportunities for prosperity,” Aluko warned, calling for collaboration among government, academia, and the private sector.

 

When National Assets Become National Embarrassments

While earlier sessions exposed private-sector weaknesses, Professor Adetunji Ogunyemi, Professor of Economic History at Obafemi Awolowo University, delivered a scathing critique of public-sector asset management.

He pointed to Nigeria’s refineries—Port Harcourt, Warri, and Kaduna—as prime examples of national assets turned liabilities. Built to world-class standards and designed for Turnaround Maintenance (TAM) every 3–5 years, these refineries now operate at zero capacity.

“Nigeria produces 1.68 million barrels of crude daily yet spends over ₦4 trillion yearly importing refined fuel,” Ogunyemi lamented.

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He stressed that TAM failures stem not from lack of funds but from institutional dysfunction and corruption. Citing global benchmarks, he contrasted Saudi Aramco’s 95% uptime with Nigeria’s less than 10%, attributing the gap to governance—not technology.

“The problem is not resources but accountability,” he declared.

A Legal Battle Plan for Public Assets

Professor Ogunyemi went further, outlining a six-point legal and institutional remedy for asset mismanagement:

1. Immediate termination and penalties for defaulting contractors.
2. Criminal prosecution for contract fraud under Section 419 of the Penal Code.
3. Stronger regulatory oversight with performance bonds and blacklisting.
4. Aggressive litigation to recover diverted funds.
5. Use of alternative dispute resolution mechanisms.
6. Establishment of an independent TAM oversight board free from political interference.

“Resorting to the courts is not belligerence—it is patriotism,” he insisted. “The judiciary must be weaponized to protect public assets.”

His closing warning was chilling: without accountability, “more infrastructure will collapse, more billions will vanish, and economic sovereignty will erode further.”

The Choice Ahead

As the two-day conference concluded, participants left with a clearer sense of both the scale of Nigeria’s ₦2 trillion problem and the solutions within reach.

The challenges remain formidable: refineries producing nothing despite billions in investments, factories lying idle, and a skills gap that leaves graduates unemployable.

Yet, examples like Kano State’s geo-mapping and Lagos’s SME partnerships prove that revival is possible. Turnaround management, applied with discipline, could transform crisis into opportunity.

The speakers made it clear: the issue is no longer what to do—it is whether Nigeria has the political will and institutional discipline to do it.

Reviving just 20% of moribund assets could create hundreds of thousands of jobs, inject billions into the economy, and rebuild the nation’s industrial base.

As Dr. Ogidan reminded participants, “The philosophy of turnaround management sees crises as opportunities for transformation.”

Nigeria’s ₦2 trillion problem could, indeed, become its greatest comeback story—if the nation chooses accountability over excuses, action over inaction, and transformation over decline.

The sleeping giants can be awakened. The only question is: will Nigeria rise to wake them?

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