15 multinational firms quit Nigeria beset by corruption and hostile business environment
By Jeph Ajobaju, Chief Copy Editor
A landscape of deep seated corruption and hostile business environment has led to the departure of more than 15 multinational firms from Nigeria in the past three years, laments the Nigeria Employers’ Consultative Association (NECA).
NECA data shows that as a consequence more than 20,000 workers have lost their jobs through divestment in companies or partial closure of operations.
Yet Bola Tinubu has been wasting borrowed funds to gallivant across the world – at times with large entourages – claiming to persuade foreign investors to invest in Nigeria, without tackling the problems on the ground causing existing ones to flee.
Despite public outrage, the President has voted N7.63 billion for foreign travels in 2024.
The PUNCH has written at least two editorials in the past one month criticising Tinubu for his foreign trips since he came to power in May, saying they are wasteful when Nigerians are demanding a cut in the cost of governance to invest in infrastructure.
The PUNCH pointed out trips to woo foreign investors embarked upon by former Presidents Olusegun Obasanj (1999-2007) and Muhammadu Buhari (2011-2023) never yielded tangible results, with foreign investments in Nigeria steadily decreasing over the past two decades.
The International Air Transport Association (IATA) has also alerted that more foreign airlines may quit Nigeria if the $790 million ticket revenue still trapped in the country is not released soon.
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Divestments will negatively impact foreign funds inflow, NECA warns
NECA warned the exodus of foreign firms has dire consequences for organised businesses, labour, as well as for government revenue and households, per reporting by The Guardian.
Procter & Gamble (P&G), a global brand, last week announced its departure from Nigeria coming after GlaxoSmithKline announced its own departure.
Other global brands like French pharmaceutical titan, Sanofi-Aventis, and Norwegian energy leader, Equinor, have divested.
NECA Director General Adewale-Smatt Oyerinde reiterated divestments would seriously affect government’s efforts to attract Foreign Direct Investment (FDI).
Manufacturers Association of Nigeria (MAN) Director General Segun Ajayi-Kadir moaned about how toxic the business operating environment encourages relocation.
He disclosed the number of jobs lost in the manufacturing sector rose to the highest level in three years in the first half of 2023.
In his view, Nigeria needs investments to create more jobs because what shapes a country are decisive actions by leaders to positively improve the lot of citizens.