Foreign Companies Leaving Nigeria Amidst Economic Challenges Under President Tinubu’s Administration.
In the wake of Bola Tinubu’s inauguration as the President of Nigeria on May 29, 2023, a wave of multi-national foreign companies has decided to exit or announced their departure from the country. This exodus follows concerns about the economic policies implemented since President Tinubu assumed office, leading to adverse effects on businesses and the nation’s currency.
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President Tinubu’s tenure has been marked by significant challenges, including skyrocketing inflation rates and a continuous depreciation of the Nigerian currency, the naira, against the US dollar. Upon assuming power, the naira was valued at ₦430 to the dollar at the I&E window, with a black market exchange rate of ₦750/$. However, as of December 7, 2023, the naira has experienced a substantial decline, reaching ₦930/$ at the I&E window and ₦1173/$ on the black market.
The economic downturn has led to a series of departures by prominent foreign companies, further exacerbating the challenges faced by the Nigerian economy. Here are some of the notable companies that have decided to exit Nigeria:
1. Procter & Gamble (P&G): The US consumer goods giant, Procter & Gamble, has announced the discontinuation of its manufacturing operations in Nigeria. The company will pivot to import-only operations, reflecting the challenging business environment.
2. GlaxoSmithKline (GSK): With a history spanning 51 years, GlaxoSmithKline (GSK) has declared its intention to discontinue operations in Nigeria. This move signals the end of a long-standing presence in the country.
3. Equinor: The Norwegian oil firm, Equinor, has opted to exit Nigeria, including selling its business assets, including its stake in the Agbami oil field, to Chappal Energies.
4. Haleon Plc: Haleon Plc, a British multinational consumer healthcare company headquartered in Weybridge, England, is set to leave Nigeria, contributing to the growing list of departing corporations.
5. Sanofi: The French pharmaceutical multinational, Sanofi, has formally announced its exit from Nigeria. The company has appointed a third-party distributor to handle its commercial portfolio of medicines starting from February 2024.
The departure of these companies is widely attributed to the challenging economic conditions, policy uncertainties, and the continuous depreciation of the naira. Analysts and industry experts express concerns about the broader implications for Nigeria’s economy, including potential job losses and a negative impact on the overall business environment.
The following companies that have exited the Nigerian market during former President Buhari:
1. Dunlop
2. United Airlines
3. Iberia
4. Truworths
5. Etisalat
6. ExxonMobil
7. Tiger Brands
8. HSBC
9. Woolworths
10. Shoprite
11. InterContinental Hotel Group
12. Mr. Price Group
Please note that this is not an exhaustive list, and there are many more companies that have sold their holdings and departed Nigeria.
As the nation grapples with these economic challenges, stakeholders are calling for a thorough review of existing policies and the implementation of measures to attract and retain foreign investments. President Tinubu’s administration faces the critical task of stabilizing the economy and fostering an environment conducive to sustainable business growth.
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