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- The Nigerian economy has seen the exit of famous multinational companies in recent years
- In the last four years, multinationals and local firms have shut down in the country, citing various reasons
- The most recent exit is Pick n Pay, the South African grocery retailer which cited economic challenges for leaving the country
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Recently, Nigeria has seen a rising trend of multinational and local firms packing up and relocating their operations due to economic challenges, currency devaluation and increasing operational costs.
Legit.ng reported that Pick n Pay, the South African grocery retailer, is the latest foreign firm to exit the Nigerian market. The company disclosed its intention to close shops in Nigeria.
Source: Getty Images
Pick n Pay cites reasons for departure
On Monday, October 28, 2024, the company disclosed that it would leave the Nigerian market and sell a 51% stake in its joint venture.
The company’s chief executive officer, Sean Summers, disclosed that the decision aligns with its broader restructuring plan outside its home market.
The company entered the Nigerian market via a 2016 deal with A.G. Leventis (Nigeria) and opened its first store in 2021. It currently operates two locations.
The venture was seen as a strategic move into the Nigerian market, aiming to leverage Nigeria’s growing demand for grocery retail.
Experts believe economic challenges, naira volatility and regulatory hurdles have affected the company’s investment in Nigeria.
List of firms that exited Nigeria in three years.
- Standard Biscuits Nigeria Ltd
- NASCO Fiber Product Ltd
- Union Trading Company Nigeria PLC
- Deli Foods Nigeria Ltd
Over ten companies exited Nigeria in 2023 as economic instability affected their operational challenges.
- Tower Aluminium Nigeria PLC
- Framan Industries Ltd
- Stone Industries Ltd
- Mufex Nigeria Company Ltd
- Surest Foam Ltd
Multinational departures continued in 2021, with over 20 companies exiting Nigeria in 2021.
- Universal Rubber Company Ltd
- Mother’s Pride Ventures Ltd
- Errand Products Nigeria Ltd
- Gorgeous Metal Makers Ltd
2022 saw the exit of over 15 companies from the Nigerian market.
- Unilever Nigeria PLC
- Procter & Gamble Nigeria
- GlaxoSmithKline Consumer Nigeria Ltd
- ShopRite Nigeria
- Sanofi-Aventis Nigeria Ltd
- Equinox Nigeria
- Bolt Food & Jumia Food Nigeria
The trend continued in 2023 as more multinationals left the country, leaving many Nigerians unemployed. The companies cited profitability issues and a challenging business environment.
- Microsoft Nigeria
- Total Energies Nigeria (impacted by divestment strategies)
- PZ Cussons Nigeria PLC
- Kimberly-Clark Nigeria
- Diageo PLC
According to reports, about five companies left Nigeria, citing a challenging business environment and naira volatility.
GSK Exits Nigeria after 51 years
Legit.ng earlier reported that GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, has announced plans to leave Nigeria after 51 years of operations.
The company said in a statement seen by Legit.ng that it disclosed that the British firm informed GlaxoSmithKline Consumer Nigeria Plc of its plans to cease commercialising its top medicines and vaccines in the country via GSK local operating companies and move to a third-party direct distribution model.
The company added that it had stated its plans to end its distribution agreement in the coming months and appoint a third-party distributor in Nigeria to supply healthcare products.
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Source: Legit.ng
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