Roxettes Group Considers Relocating Manufacturing Operations from Southeast to Lagos over Insecurity, Logistics Challenges

Roxettes Group, one of Nigeria’s emerging industrial conglomerates, is reportedly considering relocating several of its major manufacturing plants from the Southeast to Lagos State, citing persistent security and logistical challenges affecting operations in the region.

Sources close to the company confirmed to Nairametrics on Saturday that internal consultations are ongoing regarding the potential transfer of its automotive, chemical, and paint subsidiaries. The group’s businesses include Roxettes Motors, an automotive assembly plant in Abia State; Roxettes Chemical Industries Ltd; and RoxyCarb, a paint and raw materials producer based in Enugu State.

According to the sources, the management team has been evaluating the financial and operational implications of maintaining production facilities in the Southeast amid recurring disruptions that have hampered consistent output and supply chain stability.

“The discussions are still at a feasibility stage,” one senior executive said. “However, management is increasingly concerned about the cumulative impact of logistics bottlenecks, restricted working days due to sit-at-home orders, and broader insecurity across the Southeast. These issues have made sustained industrial operations very difficult.”

The company’s board is said to be exploring relocation to Lagos, where proximity to ports, export terminals, financial institutions, and transportation networks could provide a more stable business environment. While no final decision has been reached, the move would place Roxettes among a growing number of manufacturing firms re-evaluating their regional operations in response to insecurity and market pressures.

Consultations with Investors and Partners

Although Roxettes Group’s Chairman and Chief Executive Officer, Dr. Kaycee Orji, has not issued an official statement on the matter, industry sources confirm that discussions are ongoing with the firm’s international investors and technical partners to determine the viability of the move.

The review reportedly covers the company’s state-of-the-art Roxettes Motors Assembly Plant in the Obuaku Industrial Zone, Abia State, as well as its Enugu-based subsidiaries that supply paint and chemical materials to the automotive and manufacturing sectors.

One key concern under consideration is the fate of imported Compressed Natural Gas (CNG) production and processing equipment that was originally meant to be installed at the Obuaku facility. Sources say it remains unclear whether the equipment will now be redirected to Lagos or retained in the Southeast should relocation plans proceed.

Impact on the Southeast Economy

If implemented, the relocation could have significant implications for employment and industrial development in the Southeast, where Roxettes has been viewed as a symbol of indigenous innovation and investment. The group’s operations have provided hundreds of jobs and contributed to regional supply chains for locally assembled electric vehicles, industrial paints, and chemical components.

However, persistent insecurity, including sporadic kidnappings, vandalism, and sit-at-home disruptions linked to separatist activities, has caused frequent shutdowns and increased costs for many companies in the region.

A recent Nairametrics report noted that the combination of insecurity and logistics delays has discouraged new investment inflows and prompted some existing businesses to relocate.

A Broader Pattern of Business Migration

The potential move by Roxettes mirrors a broader trend among Nigerian entrepreneurs who have shifted operations from the Southeast to other parts of the country in search of stability.

In a 2024 interview with BBC Igbo, businessman and socialite Pascal Okechukwu (Cubana Chief Priest) explained that rising insecurity had forced him to relocate his hospitality ventures away from the region. He noted that fears of kidnapping and attacks had scared away customers, making business operations increasingly unsustainable.

The Southeast, long regarded as an entrepreneurial hub, has seen its commercial activities constrained by recurring insecurity and transport disruptions. Analysts say if the situation persists, more manufacturers may be compelled to relocate, further impacting the region’s industrial prospects.

Outlook

While Roxettes Group has not yet made a formal announcement, sources within the organization suggest that a final decision could be made after consultations with regulators and key stakeholders.

If relocation proceeds, the move would position the company closer to Nigeria’s commercial and maritime heart in Lagos, allowing greater access to export infrastructure and financial markets. However, it would also mark a setback for industrial revitalization efforts in the Southeast, a region already grappling with the effects of insecurity on local commerce.

For now, stakeholders and observers are watching closely as one of Nigeria’s promising industrial players weighs a critical decision that could reshape its operational future — and send a message about the urgent need to restore business confidence in the country’s Southeast.