Nigeria has seen a growing trend of companies exiting or downsizing due to economic instability, currency fluctuations, and high operational costs.
South African retailer Pick n Pay is the latest to announce its departure, planning to sell its 51% stake in a joint venture with A.G. Leventis (Nigeria).
Pick n Pay’s exit reflects the challenges faced by businesses in Nigeria’s competitive retail market, as economic pressures, currency instability, and regulatory issues hinder investment viability.
This trend underscores the difficulties for companies trying to maintain profitability in Nigeria’s fluctuating economy.
Below is a year-by-year breakdown of companies that exited the Nigerian market from 2020 to mid-2024:
2020:
In 2020, more than ten companies exited the Nigerian market, as the impact of economic instability and other operational challenges became evident. Notable closures included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd
2021:
The departure of companies escalated in 2021, with over 20 firms shutting down operations in Nigeria. Among those who left were:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd
2022:
The trend persisted in 2022, with more than 15 prominent brands ceasing operations in the country, including:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd
2023:
The wave of exits continued in 2023, as over ten major companies pulled out from Nigeria, citing profitability concerns and challenging business conditions. Notable departures 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):
In the first six months of 2024, at least five significant companies exited, as the business climate remained difficult. These included:
– Microsoft Nigeria
– Total Energies Nigeria (impacted by divestment strategies)
– PZ Cussons Nigeria PLC
– Kimberly-Clark Nigeria
– Diageo PLC
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Credit – Punch