There is urgent need for the President Tinubu led government to tackle persistent inflation and other unfriendly business policies that past administrations have implemented, which is not favourable to the informal sector and the Micro, Small scale and Medium scale enterprises (MSME).
On a daily basis, average nigerian businessmen are folding up their businesses with plans to relocate to other countries where system is working, justifying their reasons on the present hardship and increasing in cost of running the day to day business without ending in sight.
Some Companies are relocating to nearby West African countries to continue their operations and production activities citing foreign exchange, insecurity, climate change, government policies as factors responsible for exiting Nigeria.
Below are list of multinational firms that have relocated from Nigeria in 2023;
Unilever Nig. ( Home care and Skin cleansing division),
GlaxoSmithKline (GSK),
Sanofi,
Bolt Foods and others.
American multinational consumer goods company, Procter & Gamble, Also announced plans to terminate its on-ground operations in Nigeria. leaving Nigeria with a portfolio valued at $85bn with Nigeria contributing $50mn net sales. The company’s exit also means that approximately 5,000 jobs have been taken away from the economy.
Mr Francis Meshioye, the President of the Manufacturers Association of Nigeria (M.A.N), recently said that some international manufacturing firms were planning to exit Nigeria as a result of the power crisis, coupled with the unpredictability of the country’s foreign exchange rate.
Meshioye said, “The downsising of businesses in Nigeria, for instance, shows that businesses are not doing very well. So this power issue and other things have made some manufacturers, particularly international businessmen relocate from Nigeria to other countries''.
Youth Unemployment and the present hardship have contributed to the emigration of skilled and unskilled youths to other countries which is leaving a vacuum and brain drain of professionals who are supposed to contribute to the sustainable development of private and public sector in Nigeria.
As a business professional and development oriented entrepreneur, I would suggest that federal government of Nigeria pay prompt attention to this rising ugly trend before it degenerates into another economic pandemic in the year 2024.
There is need for restructuring of the federal ministry of industry, trade and investment to accommodate more economists, reformation of outdated business policies hindering the growth of local MSME and liaison with the Senate Committee on industry for promotion of friendly business policies to accommodate foreign investment and ensuring a favourable business environment to secure their investment.
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