Why Multinationals Are Exiting Nigeria — Finance Minister

The Minister of Finance and Coordinating Minister of the Nigerian Economy, Wale Edun, has asserted that the President Tinubu-led government is working on the economic and investment climate to attract more multinationals into Nigeria.

Edun, who was a guest on Channels Television’s Sunday Politics programme which was monitored by Africa Today News, New York, said multinational companies exiting the country did not have liquid foreign exchange market.

He said, “One of the major drawbacks one of the major impediments for them (exiting multinationals) was they did not have a liquid foreign exchange market.

“Now, we have a willing buyer, willing seller foreign exchange market. It is elevated, may be not at the levels we will like it to be but it is when you get inflation down that you can stabilise the exchange rate and even get it coming down similarly with the interest rate. That fight is on. It is an improved environment for them, for big investors as a whole.”

He said recent executive orders signed by President Bola Tinubu has improved the investment climate for gas which Nigeria has in abundance.

Read Also: Harsh Economy: Huggies Maker Announces Exit From Nigeria

The minister said, “Companies will always come and go, of course, we aim to not only keep them but to have them even more coming to invest, and we are sure that with the environment that we put in place, they would come.”

He said tax reform proposals to make things easier for both local and foreign manufacturers operating in the country are in an Economic Stabilisation Package to be considered by the President.

We are in a difficult place but the direction of travel is and it’s towards improvement. So, every single day, every single month, we are looking at an improved economic situation for Nigeria.”

As Nigeria battles its current economic crisis sparked by the government’s twin policies of petrol subsidy removal and unification of forex windows, some manufacturing companies have announced their exit from the country in the last few months, the latest being manufacturers of Huggies and Kotex brands of diapers, Kimberly-Clark.

Others multinationals who exited Nigeria in the last one year are US-based Procter and Gamble (P&G), GlaxoSmithKline (GSK), Unilever, Sanofi-Aventi Nigeria, amongst others.

Some similar reasons cited by the companies include high energy cost and currency depreciation.

Africa Today News, New York

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