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Multinationals’ Exit Worsening Nigeria’s Economic Crisis – APC chieftain
Economic analysts had said that continuous exit of multinationals from Nigeria is not a good omen to the economy as this will reduce foreign investment inflows and affect the federal government’s plan to reach a $1 trillion GDP.
A Chieftain of the All Progress Congress (APC), Olatunbosun Oyintiloye, has expressed concern over the mass exit of multinational companies from Nigeria in recent times, stressing that the ugly trend is worsening the economic crisis of the country as hundreds, if not thousands of Nigerians, have lost their jobs as a result.
Economic analysts had said that continuous exit of multinationals from Nigeria is not a good omen to the economy as this will reduce foreign investment inflows and affect the federal government’s plan to reach a $1 trillion GDP.
According to the APC Chieftain, “there is no doubt that if these foreign companies continue to exit Nigeria, it will have adverse effects on our economy.
“The exit of multinationals will worsen the economic challenges facing Nigerians. The trend will lead to a higher unemployment rate because Nigerians working in these companies may be retrenched after a change in ownership, decline in foreign investments, increased inflationary pressures, instability in foreign exchange, and reduction in government revenue will also set in.
“Take, for instance, Procter & Gamble alone accounted for approximately 5,000 jobs. The exit of GlaxoSmithKline, with a market capital of N22bn and over 400 highly technical workers will further exacerbate the already terrible unemployment rate.
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“Also, with the exit of Unilever with a net worth of N50bn and 755 employees, the concern keeps growing.
“Within the value chain, numerous enterprises serve as suppliers to these major corporations, and the sustainability of these companies is significantly threatened when the primary source of their business is facing a threat.
“The chances for survival of these secondary businesses are at stake, and their employees are also at risk of losing their jobs. There is an urgent need for us to pay more attention to the crisis within the value chain system than the situation is currently receiving.
Recall that Reuters had made a publication of the economic realities of the country rising from President Tinubu’s reforms, insecurity and other factors: “…millions in Africa’s largest economy, grappling with the worst cost of living crisis in decades, that has deepened since President Bola Tinubu introduced bold but unpopular economic reforms after he assumed office.
“Foreign companies like Procter & Gamble will stop manufacturing in Nigeria, while drug makers GSK Plc and Bayer AG will contract third parties to distribute their products, in part due to tough operating conditions and the naira slump.
“Africa’s biggest telecoms operator MTN Group (MTNJ.J), opens new tab posted a big fall in full-year profit citing naira devaluation, which also prompted soap maker PZ Cussons Plc (PZC.L), opens new tab to issue a profit warning.
“Widespread insecurity in food growing areas – including abduction for ransom by armed gangs, a long-running Islamist insurgency and farmer-herder clashes – is adding to the woes by keeping many farmers away from their fields.
Additionally, Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Stone Industries and GlaxoSmithKline Consumer Nigeria, are among companies and major employers of labour that have shut down recently in the country.
Unilever stopped the production of its legendary OMO, Sunlight and Lux home and skin care brands in a bid to cut costs, leading to loss of jobs.