Pick and Pay: List of Foreign Companies Closed in Nigeria in 4 Years and Reasons

• The Nigerian economy has witnessed the emergence of famous multinational companies in recent years
• In the last four years, multinational companies and local companies have closed down for various reasons in the country.
• The latest exit is South African grocery retailer Pick n Pay, which has highlighted the economic difficulties of leaving the country.

Legit.ng’s Pascal Oparada covers technology, energy, stocks, investing and economy for more than ten years.

Recently, Nigeria has seen a growing trend of multinational and local firms consolidating and relocating their operations due to economic challenges. currency devaluation and increased operational costs.

Legit.ng reports that South African grocery retailer Pick n Pay is latest Foreign companies will emerge the Nigerian sunday. The company announced its intention to close stores in Nigeria.

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Pick n Pay states the reasons for its exit

On Monday, October 28, 2024, the company announced that it would exit the Nigerian market and sell a 51% stake in its joint venture.

The company’s CEO, Sean Summers, explained that the decision was in line with its broader restructuring plan outside its home market.

The company entered the Nigerian market in 2016 with an agreement with AG Leventis (Nigeria) and opened its first store in 2021. It currently operates from two locations.

The initiative was seen as a strategic move into the Nigerian market aimed at leveraging Nigeria’s growing demand for food retail.

Experts say economic difficulties naira Volatility and regulatory hurdles have impacted the company’s investment in Nigeria.

List of companies exiting Nigeria in three years.

• Standard Biscuits Nigeria Ltd
• NASCO Fiber Product Ltd
• Union Trading Company Nigeria PLC
• Deli Foods Nigeria Ltd.

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More than ten companies exited Nigeria in 2023 as economic instability impacted operational challenges.

• Tower Aluminum Nigeria PLC
• Framan Industries Ltd.
• Stone Industry Ltd.
• Mufex Nigeria Company Ltd
• Surest Foam Ltd.

Multinational departures continued in 2021, with more than 20 companies leaving Nigeria in 2021.

• Universal Rubber Company Ltd
• Mother’s Pride Ventures Ltd.
• Errand Products Nigeria Ltd
• Magnificent Metal Makers Ltd

2022 has seen the exit of more than 15 companies from the Nigerian market.

• Unilever Nigeria PLC
• Procter & Gamble Nigeria
• GlaxoSmithKline Consumer Nigeria Ltd.
• ShopRite Nigeria
• Sanofi-Aventis Nigeria Ltd.
• Equinox Nigeria
• Bolt Food & Jumia Food Nigeria

This trend continued in 2023; Multinational companies left the country and many Nigerians became unemployed. Companies cited profitability issues and a difficult business environment.

• Microsoft Nigeria
• Total Energies Nigeria (impressed by investment strategies)
• PZ Cussons Nigeria PLC
• Kimberly-Clark Nigeria
• Diageo PLC

According to reports, about five companies have left Nigeria, citing the difficult business environment and volatility in the naira.

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GSK is leaving Nigeria after 51 years

Legit.ng previously reported that British healthcare and multinational biotechnology firm GlaxoSmithKline (GSK) announced: plans to leave Nigeria After 51 years of operation.

The British firm has notified GlaxoSmithKline Consumer Nigeria Plc of its plans to stop commercializing its top drugs and vaccines in the country through GSK’s local operating companies and move directly to a third-party company, the company said in a statement seen by Legit.ng. distribution model.

The company added that it plans to finalize the distribution agreement in the coming months and appoint a third-party distributor in Nigeria to supply healthcare products.

Source: Legit.ng