Peter Obi Raises Alarm Over Exodus of Multinational Companies from Nigeria
Labour Party presidential candidate, Peter Obi, has voiced concerns over the exodus of multinational companies from Nigeria. Recent departures include Procter & Gamble (P&G), GlaxoSmithKline (GSK), and other significant firms. The former governor of Anambra State underscored the adverse implications of these departures on the nation’s investment climate and business environment.
Loss of Confidence and Jobs
Peter Obi highlighted that the presence of these corporations not only symbolizes confidence in the country’s socio-economic prospects but also boosts job creation, research, and development, and the cultivation of local talent. He pointed out that the absence of perceived growth opportunities, deteriorating business conditions, and declining purchasing power are forcing companies to relocate.
Impact on Nigeria’s Economy
The departure of multinationals like P&G and GSK signifies a fading trust in the country’s economic prospects. It could result in a loss of over 5,000 jobs and a substantial decline in foreign investments into the country. The moves of these firms to transition their Nigerian operations to an import-only model are attributed to increased competition within the industry, declining consumer purchasing power, and recent devaluation of the naira.
Call for Government Action
Obi urged Nigerian governments to take immediate measures to reverse the worsening business environment. He emphasized the need for an improvement in governance and the creation of a conducive environment for retaining and attracting international investors. The presence of multinational companies is crucial to Nigeria’s national development, as they contribute significantly to job creation, growth, and technology.
The Lagos Chamber of Commerce and Industry (LCCI) has also urged the government to create a more flexible and transparent foreign exchange policy to address the trend of multinational companies leaving Nigeria. These exits are posing a threat to job creation and the country’s overall economic growth.
