Once the heartbeat of Nigeria’s manufacturing sector, Kano State has suffered a dramatic industrial decline.
BusinessDay’s investigation revealed that the decline is due to a host of structural challenges, including erratic power supply, the collapse of railway infrastructure, the long distance to seaports, and general infrastructural decay.
At its peak, Kano’s industrial estates—Bompai, Sharada, Challawa, Hadejia Road, and Dakata/Kawaji—were thriving manufacturing hubs, home to over 500 industries. However, 65 percent of these businesses have now shut down, leaving the state’s once-vibrant industrial landscape in disarray.
Today, only two major players, Mamuda Group of Companies and Aspira Nigeria Limited, are attempting to revitalise Kano’s industrial scene, albeit amidst persistent challenges.
The decline has had far-reaching consequences, exacerbating unemployment and deepening poverty in the region. The economic downturn has significantly reduced Kano’s manufacturing output, making the state a shadow of its former industrial self.
The rise and fall of Kano’s industrial hub
Kano’s industrial journey dates back to the trans-Saharan trade era, which attracted merchant families and foreign investors, primarily from the Middle East. The modern industrial evolution of the state began in the late 1940s, when European trading companies such as UAC, CFAO, SCOA, and John Holt transitioned from raw material export to local manufacturing.
According to Mercy Musa, Executive Director of the Frontier for Peace Advocacy and Governance Initiative (FPAGI), “Foreign and indigenous capital were crucial in Kano’s manufacturing growth, particularly in groundnut oil milling, textiles, and shoemaking. Indigenous entrepreneurs later joined in, buoyed by the federal government’s indigenisation policies.”
This era of rapid industrial expansion led to the establishment of the Bompai Industrial Estate, the first of its kind in West Africa, followed by estates in Sharada, Challawa, Hadejia Road, Kawaji, and Dakata. By 1973, Kano had over 75 manufacturing plants, which grew to 165 in 1982 and over 500 by 1985, employing more than 100,000 workers.
Kano’s industries specialised in diverse sectors, including leather processing, plastics and rubber, beverages, textiles, pharmaceuticals, cosmetics, and aluminium production. However, this golden era has faded, giving way to a grim reality.
The structural challenges behind the collapse
According to the Manufacturers Association of Nigeria (MAN), multiple factors have contributed to Kano’s industrial decline. The discovery of oil shifted national priorities away from industrialisation, leading to inconsistent policies and declining investment in the manufacturing sector.
Key issues include:
Industries in Kano continue to struggle with unreliable electricity, forcing many to rely on costly generators to sustain operations. The situation is compounded by deteriorating infrastructure—collapsed railways and poor road networks have significantly increased the cost and inefficiency of moving goods. Manufacturers also face persistent foreign exchange shortages, making it difficult to import essential raw materials, while ageing machinery further weakens their competitiveness. Beyond these structural challenges, there is a noticeable decline in entrepreneurial interest among the younger generation, raising concerns about the sector’s long-term sustainability.
The numbers behind the industrial decline
In Sharada and Challawa Industrial Estates, 106 out of 155 industries have shut down. In Bompai, 126 out of 183 businesses have collapsed. The worst-hit sectors include textiles, food and beverages, motor vehicle assembly, chemicals, and paper production.
Suleiman Tofa, former chairman of the Bompai branch of MAN, attributes this decline to multiple taxations, lack of infrastructure, and Kano’s distance from the nation’s seaports, which places manufacturers at a severe disadvantage.
Tofa also cites the Central Bank of Nigeria’s (CBN) policy of excluding certain goods from the official foreign exchange window as a major setback. Northern Nigeria Flour Mills Plc, one of the oldest flour mills in the region, recently shut down its wheat processing plant due to difficulties in importing wheat, leading to over 100 job losses.
“No company in the North currently produces wheat flour,” Tofa lamented. “The region now relies entirely on manufacturers in Lagos and Ogun states.”
Can the Tinubu administration revive manufacturing in Kano?
Despite the grim outlook, industry players are optimistic about President Tinubu’s budgetary commitments to the manufacturing sector. Tofa believes that if implemented effectively, these policies could provide a much-needed boost to Kano’s industries. He advocates for special tax incentives, such as a reduction in corporate tax rates for manufacturers in the North, to offset the logistical disadvantages they face.
He also calls for the rapid completion of the gas pipeline project and the establishment of a cluster power generation plant in Kano, which could be developed through public-private partnerships.
Mamuda group and Aspira: A beacon of hope
Amid Kano’s industrial decline, Mamuda Group of Companies and Aspira Nigeria Limited are striving to revive manufacturing in the state.
Mamuda Group, which started as a trading company in hides and skins in the 1980s, has now expanded into full-scale manufacturing. Its subsidiaries, including Mamuda Beverages, Mamuda Agro & Allied Products, and Mamuda Foods, are creating jobs, fostering entrepreneurship, and supporting local communities.
Similarly, Aspira Nigeria Limited, part of the Lee Group of Companies, has become a major player in the production of laundry, hygiene, and dental care products.
Together, these companies are generating close to 50,000 direct and indirect jobs in Kano, injecting new life into the state’s manufacturing sector. Their investments mark the largest industrial resurgence in Kano in over five decades.
The road to recovery
Kano’s industrial decline is a cautionary tale of what happens when infrastructural neglect and inconsistent policies stifle economic growth. However, the resilience of Mamuda Group and Aspira Nigeria Limited offers a glimpse of hope. With strategic government intervention, policy consistency, and targeted incentives, Kano could reclaim its position as Nigeria’s manufacturing powerhouse.
The question remains: will the state and the federal government take the necessary steps to revive Kano’s industrial sector, or will the state continue to fade into economic obscurity? (BusinessDay)
