In recent years, Nigeria has seen an exodus of both multinational and local companies grappling with economic hardships, fluctuating currency rates, and escalating operational costs.
These challenges have forced many firms to close operations or relocate to more stable markets.
The latest departure is South African retail giant Pick n Pay, which recently announced plans to leave Nigeria by selling its 51% share in a joint venture.
CEO Sean Summers stated that the exit is part of the company’s strategic realignment outside of South Africa.
Pick n Pay, which ventured into Nigeria in 2016 through a partnership with A.G. Leventis, opened its first store in 2021 and soon expanded to two locations.
Despite Nigeria’s status as a promising consumer market, economic volatility, naira depreciation, and regulatory barriers ultimately made the investment unsustainable.
According to The Punch, economist Vincent Nwani, who previously served as Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, stated that more than ten companies shut down in 2020, and over twenty others left Nigeria.
Here’s a breakdown of companies that exited the Nigerian market from 2020 to 2024:
2020:
The economic landscape in 2020 forced more than ten companies to exit, primarily due to financial instability and high operating costs. Notable exits included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd
2021:
By 2021, over 20 companies had shut down Nigerian operations as economic pressures continued. Among the companies that exited were:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd
2022:
In 2022, more than 15 prominent firms withdrew from Nigeria, citing similar economic challenges:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd
2023:
The trend persisted in 2023, with over ten companies pulling out due to low profitability and challenging business conditions. Major departures included:
– Unilever Nigeria PLC
– Procter & Gamble Nigeria
– GlaxoSmithKline Consumer Nigeria Ltd
– ShopRite Nigeria
– Sanofi-Aventis Nigeria Ltd
– Equinox Nigeria
– Bolt Food & Jumia Food Nigeria
2024 (January – October):
The challenges carried over into 2024, with at least five significant companies leaving in the first ten months. These included:
– Microsoft Nigeria
– Total Energies Nigeria (impacted by strategic divestment)
– PZ Cussons Nigeria PLC
– Kimberly-Clark Nigeria
– Diageo PLC
This steady outflow of companies highlights ongoing issues within Nigeria’s economic environment, which continue to impact the viability of business operations for many firms.
