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Over 50 companies have left Nigeria since 2015 when the All Progressives Congress (APC)-led government took over the reins of power at the federal level.
The mass exodus of multinational and local companies from Nigeria has raised alarm over the country’s economic stability and indicted the ruling party.
As businesses continue to face harsh conditions, including unpredictable currency fluctuations, rising operational costs, and poor infrastructure, many have been forced to either shut down or relocate their operations.
From 2015 to 2022, over 50 companies closed or relocated. Prominent exits include brands such as Unilever, Procter & Gamble, and Microsoft.
The latest departure is South African retailer Pick n Pay, which announced it would sell its stake in a joint venture and exit the market.
Economists and industry leaders say foreign exchange scarcity, energy costs, and unstable policies are contributing factors to the firms’ exit.
Vincent Nwani, an economist, noted that the departure of multinational companies has led to an estimated N94 trillion loss in output over the last five years.
“The exodus of multinationals from the Nigerian economy has cost the country a N94tn loss of output in five years.
“If things continue this way and I don’t see anything being done to cause insecurity to stop, illegal taxation, corruption, and uncertainty of foreign exchange rendering companies unable to hedge risk, then I see at least 10 more notable names that will go. We already have five by the end of May,” he told Punch.
He stated that with the Naira’s decline and rising operational costs, businesses find it increasingly difficult to remain competitive.
He, however, noted that while some multinationals are leaving, others continue to enter Nigeria, attracted by its market potential despite the challenges.
The situation has prompted the Organised Private Sector to urge the Nigerian government to implement more effective economic policies, stabilize the Naira, and create a more predictable business environment.
Recently, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) called for the Central Bank of Nigeria to adopt transparent monetary policies and for the Nigerian National Petroleum Company (NNPC) to provide a clearer framework for the oil and gas sector.
