The exit of multinational companies from Nigeria has inflicted a financial blow amounting to N95 trillion over the past five years, according to Peter Obi, the 2023 Labour Party presidential candidate. Obi highlighted this issue in a statement via his X handle on Monday, expressing deep concern over the economic impact of these departures.
Obi noted that more than ten major multinational companies have left Nigeria in the past year alone, including prominent names such as GlaxoSmithKline, Equinor, Sanofi-Aventis, Bolt Food, Procter & Gamble, Jumia Food, PZ Cussons, Kimberly-Clark, and Diageo. He described this trend as a significant concern, indicating underlying governance problems.
“I am compelled to address the alarming exodus of multinational companies from Nigeria, which has cost our nation a staggering N95 trillion in the past five years,” Obi stated. He cited a report from The New Telegraph that detailed the consistent reasons given by these corporations for their exit.
Obi emphasized that this pattern is symptomatic of broader governance issues, rather than isolated incidents. “It is clear these issues are not coincidental but symptomatic of a larger governance problem,” he said.
The former Anambra governor called on Nigerian leaders to urgently address the factors driving these companies away. He outlined several areas for improvement, including the creation of a more business-friendly environment, enhanced security, policy stabilization, and reduced energy costs. Obi also stressed the need for a culture of transparency, accountability, and good governance.
“The responsibility lies with our leadership, those we put in charge to urgently address these challenges,” he urged. Obi called for a unified effort to transform Nigeria into a nation that is conducive to business, attractive to investment, and safe and prosperous for all citizens.
“Let us unite to transform Nigeria into a nation conducive to business, attractive to investment, safe and prosperous for all citizens. Together, we can make Nigeria a beacon of hope and progress in Africa and the world,” Obi concluded.
This issue has garnered attention following specific high-profile exits, such as GlaxoSmithKline Consumer Nigeria Plc, which announced plans to cease operations in the country. This decision was communicated in a press statement filed with the Nigerian Exchange Limited by the Company Secretary, Frederick Ichekwai.
Similarly, Jumia Food, the food delivery arm of the e-commerce giant Jumia Technologies, revealed plans to shut down its operations in Nigeria by December 2023. The company indicated it would close its food delivery service in Nigeria and six other countries to focus on its core online retail business.
These departures highlight the urgent need for reforms to retain and attract multinational businesses, ensuring Nigeria remains a viable and appealing destination for global investment.
