Multinationals Flee Nigeria Amid Economic Pressures

A wave of multinational exits and divestments has reshaped Nigeria's corporate landscape since President Bola Tinubu took office in May 2023. Several global companies have left the country or significantly reduced their local operations due to a combination of foreign exchange constraints, naira volatility, high inflation, weakening consumer purchasing power, and rising operating costs.

The Norwegian energy giant Equinor, which had operated in Nigeria since 1992, completed its exit by selling its Nigerian business to Chappal Energies for up to $1.2 billion. The deal included an initial payment of $710 million and contingent payments. Kimberly-Clark, the US-based manufacturer of Huggies and Kotex, also shut down its manufacturing operations in Nigeria after nearly 15 years.

Procter & Gamble announced it would wind down its on-ground operations and adopt an import-only model due to difficulty operating as a dollar-denominated business amid Nigeria's challenging macroeconomic conditions. Binance discontinued its Nigerian naira services, while Shoprite's locally operated stores struggled amid rising operating expenses and declining consumer purchasing power, eventually leading to their closure.

The ride-hailing giant Uber announced it would cease its ride-hailing operations in Nigeria after 12 years due to rising fuel and operating costs, inflation, and currency volatility. The exit has intensified debate over Nigeria's business environment and the impact of recent economic reforms.