Nigeria has recorded a staggering loss of over 15 foreign businesses within the past three years, according to the Nigeria Employers’ Consultative Association (NECA).
This disturbing trend has been accompanied by the partial closure or divestment of operations, resulting in the departure of over 20,000 workers, significantly impacting organized businesses, labour, government revenue, and households.
NECA’s data shed light on the dire consequences of these departures, underscoring the magnitude of the issue faced by the nation’s economy.
Global brands such as Procter & Gamble (P&G) and GlaxoSmithKline have notably announced their withdrawal from Nigeria, following in the footsteps of other industry giants like Sanofi-Aventis and Equinor.
Adewale-Smatt Oyerinde, the Director-General of NECA, expressed deep concerns about the effect of these divestments on the Federal Government’s initiatives to attract Foreign Direct Investment (FDI).
Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria (MAN), echoed his sentiments and lamented the increasingly challenging operating environment in the country, urging for a shift to prevent further relocations.
Ajayi-Kadir highlighted a stark reality: the manufacturing sector witnessed its highest job loss in three years during the first half of 2023.
He emphasized the pressing need for investments to spur job creation, emphasizing that positive leadership decisions are pivotal in shaping the nation and improving the welfare of its citizens.
The departure of these foreign businesses has ignited a discussion on the urgent need for substantial improvements in Nigeria’s business climate.
