Firms that left Nigeria from 2020 to 2024 over economic challenges
In recent years, Nigeria has witnessed an increasing trend of multinational and local companies shutting down or relocating their operations due to economic challenges, currency volatility and rising operational costs.
The latest company to announce its departure from Nigeria is South African grocery retailer Pick n Pay, which confirmed on Monday that it will exit the market by selling its 51% stake in a joint venture.
Its Chief Executive Officer, Sean Summers stated that this decision aligns with the company’s broader restructuring plan outside its home market.
Pick n Pay, which initially entered Nigeria through a 2016 partnership with A.G. Leventis (Nigeria), opened its first store in 2021 and went on to operate two locations.
This venture was seen as a strategic move into one of Africa’s largest consumer markets, aiming to tap into Nigeria’s growing demand for grocery retail.
However, the exit suggests that economic challenges, naira instability and regulatory hurdles have impacted the viability of this investment in Nigeria’s competitive retail sector.
According to an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Vincent Nwani, over 10 companies shut down operations in 2020 alone and more than 20 companies exited the country.
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 Aluminum Nigeria PLC
– Farman Industries Ltd
– Stone Industries Ltd
– Murex 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
