Operators are concerned about a potential exodus of foreign companies from the country following GlaxoSmithKline Consumer Nigeria Plc’s recent decision to close its operations in Nigeria.
Other multinational corporations are turning to local resources as they navigate strategies to stay afloat.
GSK, known for its innovative pharmaceuticals, vaccines, and consumer healthcare products, cited its parent company’s intention to halt the commercialization of its medicines and vaccines through its Nigerian subsidiary.
Earlier, Unilever Nigeria announced a shift in focus due to currency devaluation, and the naira’s value against the dollar has been steadily declining since the Central Bank’s exchange rate changes in June.
The inability to repatriate funds and GSK’s departure have raised concerns among multinationals and the Association of Community Pharmacists of Nigeria.
ACPN’s National Chairman, Adewale Oladigbolu, warned of potential exits by other multinational firms.
Economist Sheriffdeen Tella attributed exits to high interest rates, energy costs, and exchange rate volatility.
Wale Oyerinde from the Nigeria Employers Consultative Association noted the challenging business environment and numerous shutdowns.
The Lagos Chamber of Commerce and Industry expressed alarm at GSK’s decision, highlighting the impact of rising costs, unreliable power supply, and weak infrastructure on the economy.
LCCI urged the government to review the business environment to foster competitiveness and growth.
