What happened to multinationals in Nigeria?
By Ifeoluwa Adebayo
Nigeria, Africa’s economic giant has been facing a lot of troubling exodus as six multinationals exited in 10 months. These multinationals are Kimberly-Clark, Procter & Gamble (P&G), GlaxoSmithKline Consumer (GSK) Nigeria, Equinor, Sanofi, and Bolt Food.
Within 10 months, the harsh business climate caused by fuel subsidy removal and currency devaluations has driven these six major multinationals out of Nigeria. Accessing foreign exchange (forex) has become a major hurdle for businesses in Nigeria which makes it difficult for companies to import raw materials and repatriate profits, hindering their ability to function effectively.
About the multinationals:
Kimberly-Clark is an American multinational personal care corporation that produces Huggies Diapers, Sanitary pads, Kotex, and other personal care products and has been operating in Nigeria for almost 15 years. It started operations in 2012 and announced its exit on May 31, 2024.
Procter & Gamble (P&G), a US-based multinational corporation is a consumer goods company that produces Pampers, Gillette, Ariel, Always sanitary pads, and Oral-B toothpaste. It has invested millions in the manufacturing sector for over 30 years until it announced its existence in November 2023.
GlaxoSmithKline Consumer (GSK) is a British multinational pharmaceutical company in Nigeria that produces Panadol, Sensodyne toothpaste, Andrew liver salt, Maclean, and antibiotics like Augmentin. It halted operations in Nigeria after 51 years.
Equinor, a Norwegian energy company has been a significant player in Nigeria’s oil and gas sector since 2008. It was part of the Agbami oil field owned by the Chappel Energy company in Nigeria. It left Nigeria in November 2023.
Sanofi, a French healthcare company that also left in November had a significant impact on Nigeria’s pharmaceutical sector. As a major supplier of injectable polio vaccines, influenza, meningitis, and rabies vaccines, It adopted a third-party model for the distribution of its products in Nigeria.
Bolt Food, a Nigerian food delivery service that was launched in 2021 closed operations in December 2023. It faced stringent macroeconomic challenges which affected its operations. The rising prices of fuel affected its logistics and delivery fees while the rising inflation rate also increased its operation costs.
