NECA decries closure of Lagos factories over land dispute

August 7, 2026 12:56 am

The Nigeria Employers’ Consultative Association has expressed deep concern over the continued closure of manufacturing and commercial facilities within the Dopemu industrial corridor of Lagos State, following the enforcement of a warrant of possession by the Lagos State High Court Sheriff’s Department on 30 July 2026 in a longstanding land dispute.

NECA stated this in a statement on Thursday obtained by The PUNCH.

“While reaffirming its unwavering respect for the independence of the judiciary and the rule of law, NECA urges the Federal Government, through the Nigerian Investment Promotion Commission and the Federal Ministry of Industry, Trade and Investment, together with the Lagos State Government, to urgently convene all relevant parties to explore a balanced interim solution that safeguards jobs, protects investments, sustains industrial activities and mitigates the growing socio-economic consequences of the closures, pending the final determination of the matter by the courts,” the statement read in part.

Speaking on the development, the Director-General of NECA, Adewale-Smatt Oyerinde, stressed that the association was not seeking to interfere with the judicial process but was drawing attention to the far-reaching economic implications of the prolonged closure of productive enterprises.

“We fully respect the judicial process and are not seeking to interfere with ongoing court proceedings. However, there is an equally compelling public interest in ensuring that businesses employing thousands of Nigerians are not subjected to prolonged operational paralysis while legal issues are being resolved. The preservation of jobs, investments and productive capacity should remain a priority for all stakeholders,” he stated.

Oyerinde noted that the affected corridor forms part of the Lagos-Ogun industrial axis, which accounts for more than 50 per cent of Nigeria’s industrial output, making the implications of the disruption a matter of national economic concern rather than an isolated commercial dispute.

According to him, every day that factories remain shut translates into lost production, reduced incomes for workers, disruption of supply chains, lower government revenues and increased uncertainty for both local and foreign investors.

He warned that these consequences extend far beyond the affected companies, adding that, at a time when manufacturers are already grappling with high energy costs, foreign exchange volatility, elevated borrowing costs and weak consumer demand, prolonged operational shutdowns could further undermine Nigeria’s industrial competitiveness and economic recovery.

Oyerinde observed that the current situation threatens the Federal Government’s industrialisation agenda, particularly its commitment to promoting local manufacturing, import substitution, investment attraction and sustainable job creation.

“This is not merely about individual companies; it is about preserving Nigeria’s productive capacity and reinforcing investor confidence. Investors need assurance that while legal disputes are resolved through due process, legitimate businesses will not be exposed to avoidable economic dislocation capable of eroding years of investment and threatening thousands of livelihoods,” Oyerinde stated.

He therefore appealed to the Federal Government and the Lagos State Government to facilitate an equitable interim arrangement that would allow legitimate business operations to continue, where appropriate, pending the final determination of the matter by the courts.

“Our appeal is straightforward. We urge government at both levels to work with all relevant stakeholders to find a balanced solution that upholds the rule of law while safeguarding jobs, sustaining critical manufacturing activities, protecting investor confidence and preventing avoidable socio-economic hardship. Nigeria cannot afford to lose productive enterprises and livelihoods when pragmatic interim measures can preserve economic stability without prejudicing the judicial process,” Oyerinde concluded.

The closure of manufacturing and commercial facilities within the Dopemu industrial corridor of Lagos State followed the enforcement of a warrant of possession by the Lagos State High Court Sheriff’s Department on 30 July 2026. The enforcement reportedly affected several factories, warehouses and business premises operating within the industrial cluster, disrupting manufacturing, logistics and commercial activities.

The action has generated concern among manufacturers, employers and business groups, who warn that the shutdown could lead to significant job losses, production disruptions, supply chain bottlenecks and reduced investor confidence. The affected corridor is one of Lagos’s important industrial hubs, housing businesses involved in manufacturing, distribution, engineering, logistics and other commercial activities that contribute to the state’s economy.

Anozie Egole

Anozie is a Chief Correspondent at Punch Newspapers with over 13 years of experience covering entertainment, maritime, and transport sectors. He specializes in producing insightful, engaging stories that provide clarity and depth across his beats. Anozie’s work reflects substantial newsroom experience and a strong commitment to accurate and compelling journalism.

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