In 2023, Nigeria experienced a significant setback in its efforts to attract foreign investment and promote economic growth when several multinational companies decided to exit the Nigerian market. These can be likened to rising inflation which has weakened consumers’ purchasing power, further straining businesses already grappling with higher operating costs.
Among these departures was consumer goods giant Procter & Gamble (P&G), signaling broader challenges faced by businesses in the country. P&G plans to transition its Nigerian operations into an import-only model, effectively ending its on-ground presence in the country. This move is part of a growing trend, as other multinational companies have also been reevaluating their positions in Nigeria. Let’s look at several other companies who have left the country.
Unilever
Another major player in the consumer goods industry, Unilever, also announced its shutdown from Nigeria in 2023. Like P&G, Unilever has a long history in Nigeria, producing well-known brands such as Lux, Omo, and Closeup. The company cited similar reasons for its departure, including the difficulties of doing business in Nigeria and the need to focus on more profitable markets.
The manufacturer announced its intention to withdraw from two categories, namely Home Care and Skin Cleansing, and this decision will have an impact on the brands mentioned earlier. Additionally, several other brands will also be affected, including Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, Vaseline, Lifebuoy, and Rexona products, among others. Unilever has also highlighted that this new strategy will help mitigate exposure to currency devaluation and liquidity challenges.
GSK
GlaxoSmithKline (GSK), a prominent British healthcare and biotech firm, recently made headlines by announcing its decision to exit Nigeria after an impressive 51-year presence in the country. The company conveyed its intention to discontinue the commercialization of its key medicines and vaccines in Nigeria through its local operating companies, opting instead for a third-party direct distribution model.
GSK plans to conclude its distribution agreement in the coming months and appoint a third-party distributor in Nigeria to continue supplying healthcare products. This move marks a significant transition for GSK and raises questions about the evolving landscape of pharmaceutical operations in Nigeria.
Sanofi-Aventi Nigeria
Sanofi-Aventis Nigeria, a prominent French pharmaceutical company, has announced its strategic decision to conclude its direct operations in Nigeria. Starting from February 2024, the company intends to embrace a transformative business model for its Nigerian operations. Under this new approach, Sanofi plans to entrust the commercialization of its extensive portfolio of medicines to a yet-to-be-revealed third-party distributor. This significant shift in operational strategy underscores the evolving dynamics of the pharmaceutical industry in Nigeria and reflects Sanofi’s commitment to adapting to the changing landscape while ensuring continued access to its healthcare products for the Nigerian market.
Bolt Food
Bolt, the well-known ride-hailing company, has made a significant announcement regarding its food delivery service, Bolt Food, in Nigeria. Effective December 7, 2023, Bolt Food will cease its operations in the country. This strategic decision comes as Bolt aims to optimize its resources and improve operational efficiency. As a result, Nigerians will no longer have access to the Bolt Food app for placing food orders after the specified date. This move reflects Bolt’s commitment to reevaluating its business strategies and ensuring a more focused allocation of resources in its Nigerian operations.
Mayor Biscuits Company Limited
Mayor Biscuits Company Limited (MABISCO), a Nigerian biscuit manufacturer based in Ogun State, decided to shut down its operations this year. The company cited a strategic shift, aiming to divest MABISCO to focus more effectively on its core business areas. Before closing its doors in March 2023, MABISCO, situated in the Agbara Industrial Zone of Ogun State, had successfully built a network of over 300 distributors nationwide in just seven years. Established in 2016, MABISCO boasted state-of-the-art biscuit manufacturing technology with a production capacity of 3.5 tonnes per hour and access to the Shell LNG Gas terminal, featuring packing machines capable of handling 350 packs per minute, showcasing its commitment to quality production.
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