See more as another foreign company set to leave Nigeria, CEO gives reasons

4 weeks ago 1

South African retailer giant Pick n Pay has announced plans to leave Nigeria by selling its stake in A.G. Leventis
The decision comes less than 5 years after it entered the market with so much promise and excitement
Pick n Pay’s exit follows other multinationals like GSK and PZ Cussons that have been faced with challenging business environments

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

South African supermarket chain Pick n Pay has announced it will exit Nigeria, marking another retreat from the Nigerian market by a major foreign business.

Sean Summers, the CEO of Pick n Pay, revealed that the company will sell its 51% stake in a Nigerian joint venture with A.G. Leventis (Nigeria).

Reuters reports that Pick n Pay currently operates two stores in Nigeria and entered the market less than five years ago through a partnership with A.G. Leventis (Nigeria) Plc.

Summers explained that the decision is part of the company’s strategy to restructure operations outside its home market in South Africa.

In 2020, when Pick n Pay opened its first store in Nigeria, there was a buzz of excitement.

David North, group executive for strategy and corporate affairs, was quoted as saying in 2020:

"The appeal is that it is a hugely underserved consumer market and is going to grow. We have to look through the short term and into the long-term potential.""Pick n Pay will instead focus on smaller neighbourhood stores, with partner A.G. Leventis providing the local know-how, the understanding of the regulatory process and the local stakeholders."

Pick n Pay is not the only company that has withdrawn from Nigeria in recent years, and companies battle harsh economic conditions amid the naira devaluation.

South Africa Shoprite Holdings and Mr Price have all sold off their shares, while multinational companies, like PZ Cussons and GSK, have also announced their exit from Nigeria.

Another foreign company to leave Nigeria

Legit.ng earlier reported that Equinor Nigeria Energy Company (ENEC) has agreed with Chappal Energies to sell ENEC's 53.85% ownership in the oil and gas lease OML 128.

According to a statement obtained from Equinor's website, this includes the unitised 20.21% stake in the Agbami oil field, operated by Chevron.

However, according to the statement, the deal's completion is subject to regulatory approval.

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Source: Legit.ng

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