OPS worries as 61 companies exit Nigeria in four years

Nigeria Faces Massive Business Exodus as 61 Companies Exit in Four Years

The Nigerian business environment has witnessed a alarming trend with 61 companies, including multinationals and local enterprises, exiting the country over the past four years. Key factors driving this exodus include:

Economic Challenges

1. Harsh economic conditions
2. Unpredictable currency fluctuations
3. Soaring operational costs
4. Foreign exchange scarcity
5. Naira decline

Infrastructure and Security Concerns

1. Poor infrastructure
2. Power supply issues
3. Exorbitant energy costs
4. Insecurity

Government Policy Issues

1. Unstable government policies
2. High taxes
3. Low profitability
4. Corruption

Recent Departures

1. Pick n Pay (South African grocery retailer)
2. Microsoft Nigeria
3. Total Energies Nigeria
4. PZ Cussons Nigeria PLC
5. Kimberly-Clark Nigeria
6. Diageo PLC

Impact

1. Decline in Foreign Direct Investments
2. Job losses (over 20,000 employees)
3. Economic backwardness
4. Reduced government revenue

Expert Opinions

1. Vincent Nwani (Economist): “The exodus of multinationals has cost Nigeria N94tn in five years.”
2. Olusegun Ajibola (Babcock University Professor): “Exchange rate challenges and insecurity drive companies away.”
3. Dele Oye (NACCIMA President): “CBN must implement stable policies to encourage investment.”

Recommendations

1. Transparent monetary policies
2. Stable exchange rates
3. Improved infrastructure
4. Enhanced security
5. Reduced corruption
6. Collaborative government-private sector engagement