Year 2024 marked a challenging year for Nigeria’s business landscape, as a wave of international companies chose to exit the market. A confluence of economic factors, including currency devaluation, inflation, and infrastructure challenges, made it increasingly difficult for these multinational corporations to operate profitably.
As a result, several prominent companies, from retail giants to pharmaceutical firms, made the strategic decision to scale back or completely withdraw their operations from Nigeria. Here are five of them :
- Pick n Pay (February 2024):
This South African retail giant, known for its grocery stores, closed its two remaining outlets in Nigeria. Rising operational costs and economic challenges were cited as the primary reasons for the exit.
- Sanofi (March 2024):
The French pharmaceutical company announced a shift in its Nigerian operations. Instead of direct sales, Sanofi will now partner with local distributors to market and sell its products.
- Nestlé (April 2024):
This multinational food and beverage corporation, renowned for its popular brands, scaled back its operations in Nigeria. The company closed some of its factories and implemented significant job cuts.
- PZ Cussons (May 2024):
The British consumer goods company, known for its personal care and home care products, reduced its footprint in Nigeria. This decision was driven by economic factors and challenges in the market.
- Cadbury (June 2024):
Mondelez International, the parent company of Cadbury, announced a strategic review of its Nigerian operations. As a result, the company decided to downsize its presence and focus on core brands.
These exits highlight the complex economic and business environment in Nigeria. Factors such as currency devaluation, inflation, and infrastructure challenges have made it increasingly difficult for international companies to operate profitably in the country.
