The Lagos Chamber of Commerce and Industry (LCCI) and the Nigeria Employers’ Consultative Association (NECA) have slammed the Federal Government for failing to create a conducive business environment, leading to the departures of companies like Procter & Gamble (P&G), Unilever Nigeria, Nampak, and GlaxoSmithKline.
P&G’s Chief Financial Officer, Andre Schulten, recently announced the company’s transition to an import-only model in Nigeria, effectively ending its on-ground presence. This follows similar moves by other multinationals, highlighting the growing challenges faced by businesses in the country.
Both LCCI and NECA attributed these departures to a combination of stringent regulations, poor infrastructure, policy inconsistencies, and foreign exchange scarcity. NECA’s Director-General, Adewale-Smatt Oyerinde, expressed concern, stating, “When established brands like P&G cannot survive, it is worrisome how many more businesses will capitulate.”
The LCCI echoed this sentiment, pointing to the recent exits of Unilever, GlaxoSmithKline, and Guinness Nigeria as indicative of a worrying trend. Their Director-General, Dr. Chinyere Almona, highlighted the detrimental impact of lingering foreign exchange scarcity, poor power supply, port congestion, and multiple taxation on businesses.
Both organizations urged the government to implement measures to address these issues, including:
- Stabilizing and ensuring the availability of foreign exchange.
- Creating a more flexible and transparent foreign exchange policy.
- Prioritizing the stability of the country’s currency and adopting policies for price stability.
- Addressing infrastructure challenges such as poor power supply and port congestion.
- Streamlining regulations and reducing policy inconsistencies.
The LCCI and NECA believe that these actions are essential to attracting foreign investment and fostering a thriving business environment in Nigeria. Failure to address these concerns will likely lead to further departures and hinder economic growth.
Concerns about the impact of P&G’s exit are not unfounded. The company has been a major employer in Nigeria for many years, and its departure will have a significant impact on the economy. Additionally, P&G’s exit could lead to other companies reconsidering their investments in Nigeria.
The Nigerian government must take steps to address the concerns of businesses operating in the country. If it fails to do so, it risks losing out on valuable investment and economic growth.
It is important to note that there are a number of factors that have contributed to the current economic climate in Nigeria. These include the global economic slowdown, the fall in oil prices, and the ongoing insurgency in the north of the country.
However, the Nigerian government can still take steps to improve the business environment. These steps include:
- Improving infrastructure
- Reducing red tape
- Creating a more stable and predictable regulatory environment
- Combating corruption
By taking these steps, the Nigerian government can make the country a more attractive place to do business. This will lead to increased investment, economic growth, and job creation.
