TheCable

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has expressed concerns over the increasing exodus of companies from Nigeria.

Dele Kelvin Oye, NACCIMA president, spoke in a statement on Wednesday in Lagos.

The association’s worry follows the recent decision of drug giant, GlaxoSmithKline (GSK), to cease all operations in Nigeria and resort to third-party distribution to serve customers in the West African market.

TheCable had reported that a number of factors, including foreign exchange (FX) shortage, forced the companies to quit the country.

Oye said GSK’s exit from Nigeria has dealt a major blow to the country’s manufacturing sector, which is already experiencing significant collapse amongst its local businesses.

“While the current administration has commendably set Nigeria on a long-term path to economic progression, it has been noted that some of the immediate positive economic policies of President Ahmed Tinubu have had an adverse effect on certain sectors of the country,” he said.

“In particular, the sudden rise in the price of petrol and abolition of the official naira rate has caused a significant backlash, eroding the already earned income and trading capital of several multinational companies that had established their previous earnings based on the official naira rate at the time.

“As a result, there has been a steady exodus of multinational companies and the collapse of several local companies, resulting in significant job losses and economic damage.

“NACCIMA urges the government to urgently review the short-term impact of its economic policies as it relates to commitments already concluded for remittances/raw materials by the affected companies/ businesses to reverse the trend of companies leaving Nigeria.”

The association also asked the government to prioritise infrastructure and power supply investments and provide tax incentives to encourage businesses to invest in Nigeria.

“Furthermore, NACCIMA urges the government to work collaboratively with the private sector to develop policies that will stimulate economic growth and create job opportunities in the country,” he said.

“We firmly believe that with the right policies in place, Nigeria’s economy can be revitalised and the country can become a hub for business and investment in Africa.”