Nigeria's Business Landscape: Global Giants Scale Back Operations Amid Economic Challenges

Nigeria's business landscape has undergone significant changes since President Bola Tinubu assumed office in May 2023. A report by Nairametrics identifies seven global companies that have scaled back their operations or exited the country entirely due to foreign-exchange constraints, currency volatility, inflation, and rising operating costs.

Procter & Gamble (P&G) has moved towards an asset-light structure, reducing its direct operational footprint in Nigeria. The company previously operated manufacturing activities in the country but shifted towards relying on local distributors instead of maintaining extensive manufacturing infrastructure.

Other multinational companies like GlaxoSmithKline and Sanofi have also restructured their presence in Nigeria, moving away from direct commercial operations towards a third-party distribution arrangement. This trend reflects the broader challenge multinational manufacturers face when local production becomes more expensive due to foreign-exchange shortages, imported-input costs, and other operating pressures.