Obi blames poor economic management for GSK's exit from Nigeria

The Labour Party presidential candidate in the 2023 general elections, Peter Obi, has lamented the proposed exit of British pharmaceutical giant GlaxoSmithKline (GSK) from Nigeria.

Obi's comment is coming on the heels of GSK's decision to shut down operations and transition to a third-party direct distribution model for its pharmaceutical products in the country.

The company, in a statement sent to the Nigerian Exchange Limited (NGX) on Thursday, August 3, 2023, announced plans to end its prescription medicines and vaccines in Nigeria after 51 years.

Famous for products such as Augmentin, Neosporin, Panadol, Sensodyne, Advair, Ventolin, and Theraflu, among others, GSK assured its over 290 employees and shareholders that all necessary legal proceedings would be met regarding their entitlements.

Obi blames poor economic management for GSK's exit

Reacting to the development, Obi described the multinational pharmaceutical company's decision as one of the consequences of the cumulative poor management of the Nigerian economy.

Posting on his Twitter page on Friday night, Obi also said the company's reason for leaving Nigeria is even more disheartening as it reflected their perception of Nigeria as a country with no conducive business environment that would be anchored on productivity.

“As a result, millions are losing their jobs and our poverty index is worsening, even though we’re already being perceived as the world’s poverty capital,” Obi lamented.

He further wrote, “The multinationals that are leaving our country have not only created jobs but have created immeasurable training that contributed immensely to our human capital development over the years.

“Now they are leaving our shores one after the other. GSK which has a manufacturing facility in Agbara, Ogun State on over 25 hectares of land had directly employed over 400 highly technical workers like pharmacists, microbiologists, biochemists, chemists, dentists, doctors etc., and also employed over 1000 other staff.

“It indirectly provided jobs and business opportunities for thousands of Nigerians across the nation. They are now leaving all these behind, and pushing more people back into unemployment.

“I have consistently maintained that in turning our nation around, we must move the economy from consumption to production, part of which included encouraging and supporting local and foreign investments, like GSK, in the country.

“The creation of an environment that creates and sustains multinationals to invest in our country is key to our dream of greatness. In the new Nigeria that we seek to create, the emphasis on production will encourage investors to stay and expand on our shores.”

GlaxoSmithKline was incorporated in Nigeria in June 1971 and commenced business the following year.