Reps to probe ‘exodus’ of multinational companies from Nigeria

The house of representatives has resolved to investigate the “exodus” of multinational companies from the country.

The lower legislative chamber passed the resolution during the plenary session on Tuesday after the adoption of a motion sponsored by three lawmakers, Patrick Umoh (Akwa Ibom), Lukman Mudashiru (Osun), and Paul Ekpo (Akwa Ibom).

The house also resolved to find out about the “factors militating against” the ease of doing business in the country. 

In recent years, some multinational companies have shut down operations in the country, citing several factors, including foreign exchange (FX) shortage, and government policies. 

While moving the motion, Umoh, the lead sponsor, said over the past seven years, several manufacturing companies have either left Nigeria or stopped production due to business challenges.

 “Companies such as Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Stone Industries, Procter and Gamble, Sanofi-Aventis, and Equinor have exited the country, with French pharmaceutical producer, Sanofi planning to exit Nigeria, while Bolt Food discontinues food delivery due to economic challenges, Jubilee Syringe Manufacturing also declares temporary redundancy due to unforeseen business issues,” the lawmaker said.

“In 2006, Michelin and Dunlop, tyre manufacturing companies, relocated from Nigeria to Ghana due to lack of electricity supply and insecurity.

“Recently, Unilever and GlaxoSmithKline (GSK) have announced plans to cease production of iconic products in Nigeria after 51 years and have appointed third-party distributors to sell prescription medicines and vaccines in the country.”

The legislator said the “continuous departure” of multinational companies is a cause for concern as it could significantly” impact the country’s gross domestic product (GDP), hinder economic growth potential, and job losses, increase poverty, and decrease government revenue and investor confidence in the Nigerian market.

 The motion was unanimously adopted when it was put to a voice vote by Benjamin Kalu, deputy speaker of the house.

The house asked the federal government to implement “clearly defined measures” to address the challenges confronting the nation, particularly in the manufacturing sector to create a conducive environment for businesses to thrive.

The lawmakers also urged the federal government to prioritise investments in the infrastructure and power sectors as well as provide tax incentives to encourage businesses and investors.