From John Adeleye
Indication has emerged that many big companies have left Nigeria in 2023 because of the challenging business environment.
Some of those exiting include Unilever, GlaxoSmithKline (GSK), and others are examples of companies whose businesses have wound down due to economic realities.
The companies were said to have cited macroeconomic realities that affected dollar-denominated companies for their decision.
This is worsened by the removal of fuel subsidy, which further toughened the ease of doing business in the country.
PFrom fast-moving consumer goods (FMCG) companies to energy and pharmaceutical companies, the inability to repatriate funds in Nigeria and the unpredictable local currency against foreign currencies has triggered multinationals to bid the country goodbye.
The most recent case is Procter & Gamble, which announced it would dissolve on-ground operations in the country during its presentation at the Morgan Stanley Global Consumer and Retail conference.
The company clarified that its most recent strategic choice resulted from the macroeconomic realities in Nigeria and that it was challenging for an organisation denominated in dollars to conduct business in the country.
Legit.ng has computed the list of some multinational companies that left Nigeria in 2023: Unilever Earlier this year, one of the leading consumer goods companies, Unilever Nigeria Plc, announced plan to stop manufacturing some of its popular products, including Omo and Lux, in Nigeria.
The manufacturer said it will exit two categories, Home Care and Skin Cleansing, which will affect the brands mentioned earlier.
Other brands affected are Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, vaseline, Lifebuoy, and Rexona products, amongst many others. Unilever also noted that the new model would reduce exposure to devaluation and currency liquidity.
GSK Plc GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, also announced plans to leave Nigeria after 51 years of operations.
The company said in a statement seen by Legit.ng disclosed its plans to cease the commercialisation of its top medicines and vaccines in the country via GSK local operating companies and move to a third-party direct distribution model.
The company added that it had stated its plans to end its distribution agreement in the coming months and appoint a third-party distributor in Nigeria to supply healthcare products.
Sanofi-Aventi Nigeria Sanofi-Aventi Nigeria, a leading French pharmaceutical company, recently decided to close its direct operations in Nigeria. The company planned to adopt a third-party model to distribute its products in Nigeria starting in 2024.
Legit.ng
I think this an opportunity for Nigeria to go into these businesses. Many of them are unable to cope with competition because most competing products from China are cheaper. We will survive
I agree but the import of the story is to show how hostile our economy is to investors.