Since the All Progressives Congress (APC) assumed power in 2015, Nigeria has witnessed the exit of over 50 companies, both multinational and local, signaling growing concerns over the nation’s economic health and raising questions about the effectiveness of the ruling government’s policies.
The ongoing departure of businesses from Nigeria has become a cause for alarm, highlighting the country’s increasingly unstable economic climate. Many companies have been forced to shut down or relocate their operations due to several challenges, including erratic currency fluctuations, escalating operational costs, and deteriorating infrastructure.
Between 2015 and 2022, more than 50 businesses either closed their doors or shifted their operations abroad. Some of the most notable names in this exodus include global giants like Unilever, Procter & Gamble, and Microsoft, all of whom have decided to either scale back or exit the Nigerian market entirely. The most recent company to join this list is the South African retail giant Pick n Pay, which announced it would sell off its stake in a joint venture and cease operations in Nigeria.
Experts in economics and industry have pointed to several critical factors contributing to these departures, with foreign exchange shortages, high energy costs, and the instability of government policies being identified as significant drivers of business closures. According to Vincent Nwani, an economist, the mass exodus of multinational corporations has resulted in a staggering N94 trillion loss in output over the last five years.
“The departure of multinational companies from the Nigerian economy has led to a loss of about N94 trillion in output during this period,” Nwani explained. “If this trend continues unchecked, with issues like insecurity, illegal taxation, rampant corruption, and the unpredictable foreign exchange market, we could see at least 10 more major companies leave in the near future. By the end of May alone, five companies have already exited.”
Nwani attributed the difficulty for businesses to remain competitive in Nigeria to the declining value of the Naira and mounting operational expenses, which make it harder for companies to sustain profitability. However, he did acknowledge that despite the challenges, some companies continue to see potential in Nigeria’s vast market and are still willing to enter, albeit cautiously.
This growing trend of company exits has spurred calls for more robust economic reforms from various sectors, including the Organised Private Sector. They have urged the Nigerian government to take decisive action in stabilizing the country’s economic environment, with particular emphasis on implementing more effective policies that will support local businesses and attract foreign investment.
One of the key demands made by the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) is for the Central Bank of Nigeria to adopt more transparent monetary policies that could help stabilize the Naira. They have also called on the Nigerian National Petroleum Corporation (NNPC) to offer clearer guidelines and a more structured framework for the oil and gas sector, which is integral to the nation’s economy.
