Nigeria has seen a surge of companies, both multinational and local, closing or relocating due to persistent economic issues, currency instability, and high operational expenses.
The latest firm to depart is South African retail giant Pick n Pay, which recently announced it will exit Nigeria, selling its 51% stake in a joint venture.
Nigeria has seen a surge of companies, both multinational and local, closing or relocating due to persistent economic issues, currency instability, and high operational expenses.
The latest firm to depart is South African retail giant Pick n Pay, which recently announced it will exit Nigeria, selling its 51% stake in a joint venture.
Pick n Pay’s CEO, Sean Summers, explained that this aligns with the company’s restructuring efforts outside South Africa.
Initially partnering with A.G. Leventis (Nigeria) in 2016, Pick n Pay opened its first Nigerian store in 2021, eventually operating two locations.
However, the exit reflects the impact of Nigeria’s economic challenges, unstable naira, and regulatory difficulties on the retail industry.
According to The Punch, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Vincent Nwani, noted that over 10 companies shut down operations in 2020 alone and more than 20 companies exited the country.
Here’s a breakdown of the companies that left Nigeria from 2020 to 2024:
2020:
In 2020, more than ten firms exited due to worsening economic conditions. Major closures included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd
2021:
The pace of departures increased in 2021, with over 20 companies pulling out. Key exits included:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd
2022:
In 2022, over 15 prominent brands left Nigeria, continuing the trend. Some of these were:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd
2023:
The exits persisted in 2023, with over ten major companies citing profitability challenges. Notable exits 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):
By mid-2024, at least five significant companies exited due to a persistently challenging business environment. These were:
– Microsoft Nigeria (Engineering section)
– Total Energies Nigeria (affected by divestment plans)
– PZ Cussons Nigeria PLC
– Kimberly-Clark Nigeria
– Diageo PLC
