Multinationals' Exit From Nigeria Cost Country N94 Trillion, Says NESG

• The latest information from the NESG is showing that Nigeria lost trillions of naira to the exits of multinationals from her market
• These exits over the last few years have affected up to 30% of the MSMEs along the value chain
• The revenue loss for Nigeria amounts to N94 trillion through the different players in the chain

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

In the last few years, several multinationals have divested and closed shop in Nigeria due to a myriad of reasons around the harsh economic environment.

This has resulted in the closure of another 30 percent of the 24 million registered Micro, Small and Medium Entreprises (MSMEs) in Nigeria.

A new report has shown that these business closures and multinational divestments cost Nigeria N94 trillion.

Several multinationals leaving Nigeria

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Several multinationals have exited Nigeria in the last few years, while some have scaled down their operations.

Economists say the harsh business environment, naira devaluation, volatile foreign exchange market and others have played a key role in the exits.

PZ Cussons joined the multinational exit list in September 2024, following the likes of GlaxoSmithKline and Sanofi, which had left earlier.

There were also reports that American tech giant IBM was to exit its business in Nigeria and a couple of other African countries.

The reports suggested that the company could be transferring its regional functions to MIBB, a subsidiary of the Midis Group, after the exit.

NESG calls for collaboration between public, private sectors

The Nigerian Economic Summit Group (NESG) Dr. Segun Omisakin, Chief Economist and Director of Research at NESG, disclosed this at the launch of the 2025 Private Sector Outlook.

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He decried the vulnerability of the nation’s economy arising from these challenges and trends, especially the volatile foreign exchange market, Daily Trust reports.

He observed that even though FX is now more available to businesses, the naira depreciated from about N400/$ in early 2023 to now trading at about N1,500/$ in 2025.

The nation’s public debt also increased significantly, hitting N142.3 trillion as at September 2024, and this worsened the economic uncertainties in the country.

According to Dr. Omisakin, businesses need to figure out strategies to stay ahead of the economic uncertainties and still grow.

The NESG boss also called for more collaboration between the public and private sectors to ensure that groups like the Nigerian Association of Small-Scale Industrialists (NASSI), the Nigerian Association of Small and Medium Enterprises (NASME), and the Nigeria Employers’ Consultative Association (NECA) get more input into economic decisions.

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FG explains why Multinationals are leaving

In related news, the Minister of State for Petroleum Resources (oil), Senator Heineken Lokpobiri, has said that "middlemanism" is the core reason several multinationals are leaving Nigeria.

The minister emphasised that the activities of middlemen had made the terrain impossible for the multinationals to operate, especially in the oil sector.

He noted that allowing middlemen into the oil sector was a major error Nigeria made with its oil and gas sector.

Source: Legit.ng