The Manufacturers Association of Nigeria, (MAN) has decried the continuous exit of foreign multinationals from the country, a move which has been predicted to lead to over 6,000 job losses.
The President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, attributed the mass exodus of foreign companies to the ‘harsh business environment’ in the country.
He further warned the exit trend may continue if the FG fails to engage with manufacturers who would prefer not to continue plunging money into business climates that did not guarantee a return on investments.
This was corroborated by the Director-General of Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde who confirmed that in the past three years, about 20,000 Nigerians have been pushed into the labour market adding that 15 business organisations either divested from Nigeria or partially closed their operations during the period.
He said: “It is worrisome to note that in the past three years, over 15 organisations with a combined value-chain staff strength of over twenty thousand (20,000) employees have either divested or partially closed operations. This has dire consequences not only for organised businesses but also for labour, government revenue and the households.”
In the last 10 months, at least five multinationals have shut down operations in Nigeria.
In March, Unilever announced its exit from Nigeria. The company confirmed it will be ending operations of its home care and skin cleansing categories from Nigeria.
GlaxoSmithKline Consumer Nigeria Plc, the country’s second-biggest drug producer followed suit in July by halting manufacturing operations in Nigeria.
Sanofi, a French pharmaceutical multinational, also announced its exit from Nigeria
Shortly after Sanofi’s announcement, Bolt Food announced the shutdown of its food delivery operations in Nigeria due to business reasons.
Most recently, consumer goods giant Procter & Gamble said it would dissolve on-ground operations in the country.
While some of the affected companies have described their exits as business strategies, The Punch reports that an analysis of the companies’ financial records indicates shrinking profits while others have posted significant losses in recent memory.