Business: ShopRite And List Of Multinationals That Shutdown Business, Citing Harsh Economic Situations In Nigeria

The economic downturn across Nigeria hits the Retail Supermarket Nigeria Limited (RSNL), owner of Shoprite, leading to the announced shutdown of its Wuse store located in Novare Wuse Central Mall, Abuja from 30 June, 2024.

Following the collapsing Nigeria’s economy and weakening country’s currency which led to high inflations, the company’s Chief Executive Officer, Folakemi Fadahunsi, said in a circular titled ‘Notification of Novare Wuse Central Mall, closure’ dated 21 June, that the decision was made after a thorough evaluation of the store’s financial situation and the current business climate in the country.

This latest development is coming about six months after Shoprite Mall in Kano shutdown operations in its branch from January 14, 2024.

In the same vein, the popular Kano mall revealed its decision to shutdown was informed by the financial difficulties and high production costs confronting business establishments in the country in a circular made available at the time.

It’s also a huge economic loss for the employees of Jumia Food as the owner announced decision to cease operation in Nigeria, citing growing economic challenges.

In the notice, ShopRite wrote:

“We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse store located in Novare Wuse Central Mall, Abuja.

“This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organisation’s long-term growth.

“We will no longer require your services for the Novare Wuse Central Mall Store.”

“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months).

“We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.

“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team.

“If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us,” the company said.

Some of the staffs reacted to the announced shutdown of the business, citing economic losses, both for them and their dependents:

“They are supposed to tell us like a month or two as someone who works in their firm. But what they actually did was like telling us yesterday a week to the closure. And they told us that we only have one week, which to me, I don’t know for the others, is not right. Because they are supposed to give us one month’s notice.

READ ALSO: Tech: Microsoft Shuts Down Africa Development Centre In Nigeria

“We had a meeting yesterday but I was not in the meeting, but my colleagues actually spoke to the CEO and they said they are going to give us a package while laying us off. But the problem is we don’t know what the package is and they told us that they are going to close on 30 June.

“If we are not coming to work they will send us the package but what if that package is not going to be enough.

“Workers are part of a union that’s supposed to at least fight for their rights in the face of uncertainties. So, if by 30th nobody’s going to come to the store again and we don’t know the package that they are giving us. But definitely, I believe it is cash. They told us it is the economic situation that is making them close up.

“So, if it’s an economic situation they are supposed to transfer us to another store. And if you want to lay us off they are supposed to give us something tangible because like close to 100 persons will be without jobs. And most of us are married people. We are hoping to see what they will give us. That is what we are waiting for right now.”

Many Companies And Businesses That Exited Nigeria Based On Economic Downturn

Shockingly, outstanding number of firms in Nigeria recently, especially, multinationals, have outrightly shutdown operations, businesses and completely exited Nigeria.

Some of the companies chose to scale down operations, transferred ownership or sold their assets, stakes etc.

Diageo is one of them that sold its 58.02 per cent shareholding in Guinness Nigeria to Tolaram.

Shell shutdown operations and sold its assets in Nigeria, a development that was not foreseen or predicted decades ago.

The global Tech giant, Microsoft, shutdown it African Center for Development in Nigeria

PZ Cussons Nigeria PLC and Kimberly-Clerk Nigeria were not left out.

Unilever Nigeria PLC is not left out in the economic downturn.

Procter & Gamble Nigeria followed by GlaxoSmithKline Consumer Nigeria Ltd.

Sanofi-Aventis Nigeria Ltd also joined in the list alongside Equinox Nigeria.

Bolt Food & Jumia Food Nigeria shutdown business operations amongst others.

The anti economic policies of the Nigerian government has forced the country into fierce economic battles.

The impact of a persistent weakening Naira and the effect of the removal of petrol subsidy as well as skyrocketing power tariff prices, diesel and gas costs, which have more than doubled in the last one year of the current administration, have culminated in the high inflation and economic crunch ravaging the entire country.