Exit of Multinationals Costs Nigeria N95 Trillion in Five Years — Peter Obi

Peter Obi, the 2023 Labour Party presidential candidate, has highlighted the severe economic impact of multinational companies exiting Nigeria, estimating the loss at N95 trillion over the past five years.

Key Points:

• Mass Exodus: Over ten major multinational companies, including GlaxoSmithKline, Equinor, Sanofi-Aventis, Bolt Food, Procter & Gamble, Jumia Food, PZ Cussons, Kimberly-Clark, and Diageo, have departed Nigeria in the last year alone.
• Economic Impact: Obi stressed that this trend reflects broader governance issues, causing significant economic losses and calling for urgent action from Nigerian leaders.

Nature of the Issue:

• Underlying Problems: The consistent reasons cited by these companies for leaving Nigeria indicate deeper systemic problems in governance and the business environment.
• Call for Leadership: Obi urged Nigerian leaders to address these challenges by creating a business-friendly environment, ensuring policy stability, reducing energy costs, and improving security.

Specific Recommendations:

• Business Environment: Obi emphasized the need for a conducive business atmosphere to attract and retain multinational investments.
• Policy Stability: Consistent and reliable policies are crucial for maintaining investor confidence and fostering long-term business commitments.
• Energy Costs: Reducing the high cost of energy is essential to make Nigeria an attractive destination for multinational companies.
• Governance: Promoting transparency, accountability, and good governance is key to restoring confidence and encouraging investment.

Call to Action:

• Unity and Transformation: Obi called for collective efforts to transform Nigeria into a safe, prosperous nation conducive to business and attractive to investments.
• Government Responsibility: He emphasized that the onus is on the government to address these systemic issues and reverse the trend of multinational exodus.

Recent Developments:

• GlaxoSmithKline’s Exit: GlaxoSmithKline Consumer Nigeria Plc recently announced its plans to shut down operations in the country, as disclosed in a statement filed with the Nigerian Exchange Limited.
• Jumia Food’s Closure: Jumia Food also announced its plans to cease operations in Nigeria and six other countries by the end of the year to focus on its core online retail business.

Peter Obi’s statement serves as a wake-up call for Nigerian leaders to take decisive action to improve the country’s business environment and retain multinational investments, ensuring economic stability and growth for the nation.