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Harsh economic landscape: Multinationals exit Nigeria By Barachel Ukuta The harsh economic environment has made it difficult for foreign companies  to stay and operate in Nigeria.It has become a trend as multinationals are exiting the country. The Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprises, Dr. Muda Yusuf  told Peb News Correspondent via phone that:"The exit of multinational companies from Nigeria is regrettable.   For most of them, the issues were about the volatile macroeconomic environment and to a lesser extent, the challenge of insecurity.  According to him, the biggest shock to most of them was the naira exchange rate depreciation and the corresponding exchange rate losses. The Nigerian business environment has become tough and worsened by the removal of petrol subsidy and naira devaluation. Dr. Yusuf said:"The multinationals also had huge forex exposure in debt financing.  Most of their financing was in foreign currency. Again, because of the  drastic naira depreciation, many of them were thrown into a loss position". It was gathered that as a result of this  challenges, five multinationals had exited the country in the last ten months. They are Procter & Gamble (P&G), GlaxoSmithKline (GSK) Nigeria, Equinor, Sanofi and Bolt Food. It was learnt, a few  days ago, Kimberley-Clark, an American Multinational Personal Care Corporation announced its plans  to exit Nigeria after almost 15 years of operations. The company commenced operations in Nigeria in 2012 but halted activities after five years in 2019 due to unfavourable economic conditions and later resumed operations in 2021. The company  produces Huggies diapers, sanitary pads, etc. The CEO, CPPE  who said  competition in Consumer market was  a challenge  for them added: "The  heightened competition in the consumer goods space in which the multinationals were major players.  Most of them progressively lost their market share to the raging competition and disruptions in the consumer market segment of the

The harsh economic environment has made it difficult for foreign companies  to stay and operate in Nigeria.It has become a trend as multinationals are exiting...

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