Multinational exit: Nigeria Govt Engages Foreign Investors Amid Macroeconomic Challenges

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Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, has disclosed ongoing talks between the federal government and multinational companies, addressing challenges faced by these entities, including those that have recently exited the country due to economic pressures.

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In the past ten months, five multinational corporations, including Procter & Gamble, have scaled down or terminated their operations in Nigeria. Uzoka-Anite, speaking at the launch of the World Bank Nigeria Development Update report, emphasized the government’s proactive approach to engage with companies that have left and encourage those still operating, both foreign and local investors.

During a panel session, she stated, “For those companies that are exiting, we’ve been reaching out to them. For example, P&G is recent; we’ve reached out to them a couple of times and proposed some exit strategies, to smoothen their exit or reverse exit strategy and have them retained.”

The minister highlighted the government’s commitment to dialogue with international business communities present in Nigeria to understand their challenges and explore measures to accommodate them, aligning with the Presidential Enabling Business Environment Council’s efforts to improve the ease of doing business.

P&G’s Chief Financial Officer, Andre Schuten, attributed the company’s exit to challenging macroeconomic conditions, particularly currency weakness. He noted the difficulty for a US dollar-denominated company to create value in Nigeria and announced a shift to an import-only model.

Other British multinationals, including GSK, Unilever, and PZ Cussons, have also announced operational adjustments in Nigeria, citing challenges such as foreign exchange constraints. Despite the Central Bank of Nigeria’s efforts to clear the FX backlog, concerns linger about the bank’s capacity to fully address such obligations given the current reserve levels, standing at approximately $32 billion, according to the Economist Intelligence Unit.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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