Why Multinational Companies Are Leaving Nigeria — Wale Edun Reveals

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has explained why some multinational companies are leaving the country.

During his appearance on Channels Television’s Sunday Politics programme, Edun highlighted that the departure of multinational companies from the country was primarily due to the absence of a well-functioning foreign exchange market.

He stated, “A significant obstacle faced by these departing multinationals was the lack of a liquid foreign exchange market.”
Edun stressed the government’s efforts to enhance the economic and investment environment to entice additional multinational corporations to invest in Nigeria.

He added: “Now, we have a willing buyer, willing seller foreign exchange market. It is elevated, maybe not at the levels we would like it to be, but when you get inflation down, you can stabilise the exchange rate and even get it coming down similarly to the interest rate. That fight is on. It is an improved environment for them, for big investors as a whole.”

The Minister stated that the recent executive orders signed by President Bola Tinubu have enhanced the investment climate for gas, which Nigeria possesses in abundance.

Edun said, “Companies will always come and go, of course. Our aim is to not only keep them but to attract even more to invest, and we are sure that with the environment that we put in place, they will come.”

The Minister mentioned that an Economic Stabilisation Package is in place, aimed at facilitating operations for both domestic and international manufacturers within the country, prior to being presented to the President.

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“We are in a difficult place but the direction of travel is, and it’s towards improvement. So, every day and every month, we are looking at an improved economic situation for Nigeria.”

In recent months, Nigeria has grappled with an economic crisis caused by the government’s decision to remove petrol subsidies and unify forex windows. As a result, several manufacturing companies, including Kimberly-Clark, the makers of the Huggies and Kotex diaper brands, have chosen to leave the country.

This trend of multinational companies exiting Nigeria has been ongoing for the past year, with notable departures including Procter and Gamble (P&G), GlaxoSmithKline (GSK), Unilever, and Sanofi-Aventi Nigeria.

The reasons cited by these companies for their departure are broadly similar, with high energy costs and currency depreciation being among the key factors.