Numerous global enterprises have bid farewell to Nigeria in 2023, citing an unfavourable business climate as the primary reason for their exit.
The recent removal of the fuel subsidy has exacerbated the challenges of operating in the country, making it increasingly difficult for multinational corporations to thrive.
Naija News compiled a list of multinational companies that departed Nigeria in 2023:
Bolt Food, a meal delivery service provider, has declared the discontinuation of its services nationwide starting December 7, 2023. The decision, driven by a need to enhance efficiency and optimize resources, reflects the challenging business landscape faced by companies in Nigeria.
Procter & Gamble (P&G), a major player in the consumer goods industry, announced its decision to cease on-ground operations in Nigeria during the Morgan Stanley Global Consumer and Retail conference. The company attributed this strategic move to the macroeconomic realities in Nigeria, emphasizing the difficulties faced by an organization denominated in dollars when conducting business in the country.
Unilever, a leading consumer goods company, also made headlines earlier this year by revealing plans to discontinue manufacturing some of its popular products, including Omo and Lux, in Nigeria. The company’s exit from the Home Care and Skin Cleansing categories, affecting brands such as Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, Vaseline, Lifebuoy, and Rexona, aims to reduce exposure to devaluation and currency liquidity.
GlaxoSmithKline (GSK), a British healthcare and biotech firm with 51 years of operations in Nigeria, has similarly announced its departure. GSK plans to stop the commercialization of its top medicines and vaccines through local operating companies, opting for a third-party direct distribution model.
Equinor, a Norwegian energy corporation, finalized the sale of its Nigerian operations, including its stake in the Agbami oil field, to Chappal Energies, a Nigerian company. This transaction marks the end of Equinor’s three-decade presence in Nigeria, covering the sale of Equinor Nigeria Energy Company (ENEC), which held a 53.85% interest in oil and gas lease OML 128, including a unitized 20.21% stake in Chevron-operated Agbami oil field.
Sanofi-Aventi Nigeria, a prominent French pharmaceutical company, has decided to close its direct operations in Nigeria and transition to a third-party distribution model starting in 2024. This transformative business model is set to commence in February 2024, allowing a yet-to-be-named third-party distributor to handle the commercialization of Sanofi’s portfolio of medicines.
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As multinational companies continue to navigate the complexities of the Nigerian business environment, these recent exits underscore the challenges posed by economic uncertainties, unfavourable policies, and restrictions on fund repatriation.
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