The Lagos Chamber of Commerce and Industry, LCCI, Thursday, described as worrisome the exit of Procter & Gamble and some multinationals from Nigeria.
The Chamber noted that over the last few months, there has been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by multinationals citing macroeconomic challenges.
Daily Trust reports that the Chief Financial Officer of P&G, Andre Schulten, on Wednesday indicated that the company plans to transition its Nigerian operations to an import-only model, effectively dissolving its on-ground presence in the country. The company cited challenges in conducting business as a dollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria. The company has a portfolio valued at $85 billion with Nigeria, contributing $50 million in net sales.
LCCI in a statement by its Director General, Dr Chinyere Almona, said that lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, have taken a toll on many businesses in the country.
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It called on the government to implement measures to stabilise and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments. It also implored the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.
“Further, the Chamber urges the government to engage multinational corporations and the business community to understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria. The CBN should prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability,” it said.
Meanwhile, the chamber has elected Mr. Gabriel Idahosa, FCA as President and Chairman of the Council. This followed the expiration of Asiwaju (Dr) Michael Olawale-Cole’s tenure. In the last two years, Idahosa served as the deputy president of the Chamber.
