By Precious Olisa
The Lagos Chamber of Commerce and Industry (LCCI) and the Nigeria Employers’ Consultative Association (NECA) have expressed their disappointment over the increasing exit of multinationals from the Nigerian market.
The two organisations reacted to the planned exit of Procter & Gamble (P&G) from the country over economic headwinds.
P&G announced its intention to close down its manufacturing operations in Nigeria and adopt an import-only business model due to the foreign exchange (FX) crisis in the country.
This is coming some weeks after GlaxoSmithKline (GSK), Sanofi, Unilever Nigeria, Equinor and others have also indicated their interest in quitting the Nigerian market.
Reacting to the latest development, NECA and LCCI blamed stringent regulatory and legislative environment, poor infrastructure, and policy inconsistencies for the difficulties faced by businesses.
The LCCI has charged the federal government to create a more flexible and transparent forex policy to address scarcity issues, while NECA advised the government to quickly address the problems raised by the departing companies.
“In the last few years, hitherto strong brands like GSK, Nampak and now P&G and some other local brands have either closed shop or divested fully or partially.
“These regrettable departures will persistently undermine the federal government’s efforts to attract foreign direct investment, rendering its initiatives highly ineffective,” the Director-General of NECA, Mr Adewale-Smatt Oyerinde, stated.
Recall that the Chief Financial Officer of P&G, Mr Andre Schulten, recently indicated that the company plans to transition its Nigerian operations to an import-only model, effectively dissolving its on-ground presence in the country.
