With additional multinational companies discontinuing ground operations in Nigeria, the country’s economy is anticipated to suffer a loss of $335 million (approximately N310 billion) in Foreign Direct Investments (FDI).
The cumulative value of assets affected by the recent exit announcements of Procter & Gamble (P&G), a major global player in the Fast Moving Consumer Goods (FMCG) segment, and Equinor, a global player in the upstream oil sector, is estimated at $335 million.
Procter & Gamble (P&G) has revealed plans to shift from local production to importing its products, leading to a gradual withdrawal from on-ground operations in Nigeria.
Similarly, Equinor is making an exit after selling its Nigerian business, including its stake in the Agbami oil field, to the Nigerian-owned energy company Chappal Energies.
Andre Schulten, the Chief Financial Officer of P&G, cited the challenging business environment in Nigeria and the difficulty in creating US dollar value as reasons for the decision.
On his part, Equinor’s Senior Vice President for Africa Operations, Nina Koch, in a statement, said: “Nigeria has been an important part of Equinor’s international portfolio over the past 30 years.”
“This transaction realises value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”
During the latter part of this year, two significant multinational corporations, GlaxoSmithKline (GSK) Consumer Nigeria Plc and Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, divested assets totaling over $800 million from Nigeria. Their decision was attributed to the challenging operating environment.