Nigerian Billionaire, Ekeh Discloses Reasons GSK, Other International Companies Are Leaving Nigeria
- Nigerian businessman Stan Leo Ekeh has disclosed why multinationals are leaving Nigeria
- Ekeh said corporate blackmail and bullying are responsible for the exit of multinationals from the country
- He called President Tinubu to address hurdles to ease of doing business in the country
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigerian billionaire and entrepreneur Leo Stan Ekeh has disclosed why multinationals are exiting Nigeria in droves, warning that if nothing is done, more businesses and indigenous firms may close down in the coming months.
According to a press statement, the Nigerian businessman and Chairman of Zinox asked President Bola Tinubu to address critical issues of corporate blackmail and bullying, frustrating the efforts of the Nigerian government to promote ease of doing business.
Source: UGC
Ekeh laments forex scarcity plaguing Nigeria
He acknowledged the forex scarcity plaguing the economy, saying that it can be surmounted with the new push by the Tinubu to inject more forex into the system.
Reports say that Ekeh revealed that the naira depreciation is only a convenient reason the multinationals gave for exiting the country.
He said:
“This has become an emerging but very destructive business model in our country, and unfortunately, the legal system is handicapped to protect the victims because of the long years it takes to discharge a case.”
Corporate blackmail responsible for low FDI into Nigeria
He stated that corporate blackmail over the years is responsible for the low attraction of foreign direct investments (FDI) compared to the size of Nigeria’s economy and potential.
According to Ekeh, the escalation of corporate blackmail over the years is responsible for the low attraction of foreign direct investments (FDI) relative to the size and potential of Nigeria’s market.
Timeline of multinational exits from Nigeria:
- In late 2023, a multinational drug manufacturer, GSK, announced the cessation of operations in Nigeria.
- After the announcement, another multinational company, P&G, said it was leaving the country.
- In January 2024, Jubilee Syringe Manufacturer announced plans to close operations in Nigeria.
- Sanofi announced its exit from Nigeria in November 2023.
"We Need Help": Price of drugs jump by over 1,000% as GSK, other big companies leave Nigeria
Earlier, Legit.ng reported that GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, recently left Nigeria after 51 years of operations.
The company instructed its Nigerian subsidiary to cease commercializing its top medicines and vaccines and use a third-party direct distribution model.
GlaxoSmithKline manufactures life-saving medicines such as Amoxicillin / Clavulanic acid, Ampiclox, Seretide, Ventolin inhalers, and Augmentin 625mg, among others.
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Source: Legit.ng
