The Organized Private Sector (OPS) in Nigeria has raised alarms regarding the Deteriorating operating conditions in the Country, which have led to an increased exodus of Multinational Corporations and Capital Flight from the Economy.
Leading Industry groups within the OPS, including the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA), the Lagos Chamber of Commerce and Industry (LCCI), and the Nigeria Employers’ Consultative Association (NECA), have Individually communicated their concerns about the escalating challenges faced by Businesses across various Sectors.
These concerns have been exacerbated by the recent departure of GlaxoSmithKline Plc, a prominent Healthcare Multinational, from Nigeria.
Both Dele Kelvin Oye, the National President of NACCIMA, and Dr. Chinyere Almona, the Director General of LCCI, emphasized the urgent need for the Government to reevaluate its short-term Economic Policies to reverse the trend of Companies exiting the Country.
NECA, as the umbrella organization representing Employers, has also highlighted the Increasing Incidents of divestments, Capital Flights, and Business closures.
They called on the Federal Government to promptly address Policies that hinder growth, are ill-timed, or Inadequately planned, and urged for Collaborative efforts between the Government and the Private Sector to develop actionable Plans that promote Enterprise sustainability and Competitiveness.
Dele Kelvin Oye, in his Statement, remarked that the exit of GlaxoSmithKline has dealt a severe blow to Nigeria’s Manufacturing Sector.
While acknowledging the Positive long-term Economic trajectory set by the current Administration, he underscored the adverse effects of certain Immediate Policies, such as Fuel Price hikes and changes in the Official Naira rate, on various Sectors.
Oye stressed the Importance of reversing the exodus of Multinational Companies to prevent Job losses and Economic damage.
Dr. Chinyere Almona echoed these sentiments, pointing out that GlaxoSmithKline’s decision to Shut down Operations after more than five decades is part of a concerning trend of Multinational Firms making such choices due to challenges like rising Business costs, unreliable power supply, and Inadequate Infrastructure.
Almona suggested a comprehensive review of the Business Environment to enhance competitiveness.
NECA emphasized the unfortunate Trend of Business relocation and divestment and called for urgent Government Intervention.
They acknowledged some Positive measures taken by the Current Administration but emphasized the need for deeper engagement with the Private Sector to attract Foreign Investment and prevent further Business closures.
In summary, the OPS in Nigeria is deeply concerned about the deteriorating Business environment that has prompted Multinational Corporations to exit and resulted in Business closures and Capital Flight.
The OPS is urging the Government to take swift action to Reverse this trend and create a more Competitive and Conducive Business climate.
