Healthcare Products, Sachet Water, Biscuits Manufacturers: Top 10 Firms That Shutdown in Nigeria
- Several manufacturing companies left Nigeria due to high operating costs and forex challenges
- Some of the companies produced high-quality products in Nigeria but halted operations due to poor economic conditions
- P&G, Mobisc, Evans Medicals, GlaxoSmithKline, and a myriad of other companies left Nigeria for neighbouring countries
About 10 manufacturing companies operating in Nigeria have stopped operations in the last decade over poor economic conditions and the economy.
The intractable forex crisis, poor power supply, port congestion, multiple taxations, insecurity, poor infrastructure, and increasing cost of doing Business in Nigeria forced them to halt operations.
Source: Facebook
Poor electricity is the biggest culprit
The manufacturers cited high energy costs, slow industrial output, and low purchasing power for exiting Africa's biggest economy.
The top 10 companies that left Nigeria
Louis Carter Industries
The then Nnwewi-based Louis Carter Industries shut down operations in Nigeria and stated that it battled high operation costs, forex scarcity, and energy costs.
The company, founded in 1989, left the country in 2017 and pushed its over 40 workers into the labour market.
Louis Carter produced plastic gallons, basins, and other plastic products.
Moak Enterprises
One of the biggest producers of sachet and bottled waters in Sango-Ota, Ogun State, revealed that it was halting production for the same reasons as others.
Moak shut down in 2021 after producing some of the finest bottled and sachet waters.
The company invested millions of naira into an ultramodern facility that churned out products for its consumers over the years.
It is among those affected by forex scarcity and could not procure raw materials for operations.
Procter & Gamble (P&G)
The highly celebrated company from the United States shut down in 2018, four years after it berthed in Nigeria.
High operating costs caused the company's painful exit after investing millions of dollars in a factory in Agbara, Ogun State.
BusinessDay reported that the company shut down due to high operating costs and import duties.
It also cited high energy costs as one of the factors that led to its exit from Nigeria.
P&G is one of the world's biggest makers of personal care products for both children and adults.
The company said at the time that it imported most of its raw materials and said the scarcity of Forex made operations in Nigeria challenging.
Tower Aluminium
Established in Nigeria in 1959, Tower Aluminium served millions of homes in Nigeria with its premium products for several decades.
The company produced pots, spoons, and other kitchen appliances and shut down in Nigeria in 2020.
GlaxoSmithKline Nigeria
The healthcare giant recently announced its exit from Nigeria after several decades of producing life-saving products there.
It has now gone into contract manufacturing arrangements with Fidson Healthcare, an indigenous healthcare manufacturer.
Mayor Biscuits Company Limited
The latest among the plethora of firms to exit Nigeria over the poor economy, Mabisco Biscuits said it was shutting down to concentrate on a more profitable arm of its business and put up its factory for sale.
The company said:
"We want to sell MABISCO because we want to concentrate on our area of core competence of business."
Technoflex Company Limited
A former top player in the plastic industry, Technoflex Limited made high-quality plastic products such as coolers, among others.
In 2017, the company called it quits with Nigeria's business environment.
Evans Medicals
Once one of the largest healthcare manufacturers in Nigeria, Evans Medicals forfeited its assets to two Nigerian banks.
The company had obtained loans from First Bank and the then Skye Bank to beef up its operations to meet World Health Organisation standards, but that turned out to be one of its biggest undoings as the company needed help to repay the loans.
2017 Evans stopped operations after AMCON took over its assets and could not continue operations.
Other companies include Surest Foam Limited, Mufex, Framan Industries, Deli Foods, Stone Industries, and MZM Continental.
Nigeria is regarded as one of the most challenging places to do Business in the world.
According to Trading Economics, Nigeria ranks 131 among 190 countries in the Ease of Doing Business in the world as of 2022.
Nigeria lost most of the companies to neighbouring countries such as Ghana and Senegal, which have a stable power and better business environment.
Lagos, Rivers in the list of 10 best states to start a business in Nigeria in 2024 and Why
Legit.ng earlier examined top 10 states in Nigeria to start a business. Some of the yardsticks used include availability of skilled labour, suppliers, and resources for scaling.
Here are the ten best cities to consider for starting a business in Nigeria in 2024.
According to the Brand Finance City Index 2023, Lagos is the fifth best African city with high desirability by people to live, work, and invest.
Source: Legit.ng
