LCCI Raises Alarm Over Exit of Multinational Firms from Nigerian

Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, yesterday expressed concern over the continuous exit of companies from the Nigerian market, saying this is increasing unemployment and may affect investment from new players.

Speaking yesterday, the DG said that in the last few months, there has been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by multinationals, “and this trend is worrisome. We have seen the likes of Unilever Nigeria, GlaxoSmithKline, Guinness Nigeria Plc and now P&G among others, exit the market. This is not good for our economy, especially at a time when we are struggling to stem unemployment and stabilize the economy.”

She regretted that lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity and poor infrastructure, among others, continue to take a toll on many businesses in the country.

Urging the government to implement measures to stabilise and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments; she also implored the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.

P&G’s Chief Financial Officer, Andre Schulten, on Wednesday said that the company is transitioning its Nigerian operations to an import-only model, effectively dissolving its on-ground presence in the country. The company cited challenges in conducting business as adollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria. The company has a portfolio valued at $85 billion with Nigeria contributing $50 million in net sales.

Almona further urged the government to engage multinational corporations and the business community to better understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria.

“The CBN should prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability,” she said.

December 09, 2023