It is no longer news that Nigeria’s economy is in shambles no thanks to government’s twin policies of petrol subsidy removal and unification of FX windows.
This has led to so many foreign companies exiting Nigeria to pastures green
United Kingdom-based Diageo joined about 15 other multinational companies that have exited the country in the past three years.
Diageo is the latest to announce its departure on Tuesday, June 11 when it said it will sell its 58.02% stake in Guinness Nigeria to Tolaram.
Diageo joins others like Kimberly-Clark, manufacturers of Huggies and Kotex brands of diapers; US-based Procter and Gamble (P&G); GlaxoSmithKline (GSK); Unilever and Sanofi-Aventi Nigeria, who are either exiting completely or reducing their exposure in a country facing its worst cost-of-living crisis in decades.
Unilever Nigeria announced its exit from the home care and skin cleansing markets in Nigeria in November 2023, saying it did so “to find a more sustainable and profitable business model.”
Procter & Gamble was the last to announce its exit from the country the same year.
Similar reasons given by these and other companies include high energy costs, currency depreciation, insecurity etc.
The Federal Government itself acknowledged these challenges in an interview granted by Minister of Finance, Wale Edun on Channels Television’s Sunday Politics programme, where he said “lack of a liquid foreign exchange market was the major reason why some multinational companies exited Nigeria,” explaining that the inability of the exiting multinationals to access foreign exchange was a major impediment to their operations in the country.
Analysts believe the persistent exit of multinational companies from the country will impact negatively on the citizens
Bad Economy: Nigeria’s Unemployment Rate Rises As 16 Multinationals Exit The Country.
