Several multinationals have exited the country by divesting their operations or transferring their stakes to new investors, while the Nigerian government highlights recent multi-million-dollar investments.
The significant exodus of multinationals this year is largely attributed to Nigeria’s economic challenges, including the depreciating naira, rising inflation and interest rates, and declining consumer purchasing power.
According to the Manufacturers Association of Nigeria, approximately 767 manufacturing companies closed down last year.
The association also reported that 365 companies faced significant distress in 2023 due to rising inflation, high interest rates, and exchange rate volatility.
Despite small and medium-scale businesses being the hardest hit by Nigeria’s harsh economic climate, large multinational companies have also been affected. Here are five multinationals that exited Nigeria in 2024:
Kimberly-Clark (K-C)
Global personal care products giant Kimberly-Clark announced its decision to exit Nigeria in June 2024. Notably, the company had previously left the country in 2019 but returned in 2021 with a $100 million investment in Lagos.
Kimberly-Clark described its exit as a “difficult decision,” stating that it would no longer manufacture, market, or sell its care products in Nigeria. The company attributed its decision to local economic challenges and the need to “refocus company strategic priorities globally.”
Pick n Pay
South African retail giant Pick n Pay exited Nigeria after selling its 51% stake in a joint venture with A.G. Leventis.
Chief Executive Officer, Sean Summers explained that the company left Nigeria to focus on its core operations in South Africa.
During its five years in the Nigerian market, operating just two stores, the company reported a pre-tax loss of ₦1.1 billion in the first half of 2024.
The pre-tax loss of ₦1.1 billion in the first half of 2024 was attributed to reduced margins and higher borrowing costs.
Diageo
In June 2024, Diageo, a global leader in the alcoholic beverages sector, announced its decision to exit Nigeria by selling its 58.02% stake in Guinness Nigeria Plc to the Singaporean Tolaram Group.
Although Diageo will retain ownership of the Guinness brand, its controlling stake in Guinness Nigeria Plc was transferred to Tolaram. This move follows the company’s poor performance in the Nigerian market, with Guinness Nigeria reporting a loss after tax of ₦61.7 billion for the nine months ending March 31, 2024, a significant decline from the ₦5.9 billion profit recorded in the same period the previous year.
Holcim
Swiss building materials giant Holcim AG also exited Nigeria in 2024, selling its 83.81% stake in Lafarge Africa PLC to Chinese company Huaxin Cement Co. for $1 billion.
Holcim’s decision to divest from Nigeria was driven by its focus on capitalizing on higher demand in the North American market, despite Nigeria’s growing housing deficit.
The company’s exit from both Nigeria and Zambia highlights the low purchasing power of the populations in these African countries.
Equinor Nigeria Energy Company
Norwegian energy company Equinor completed the sale of its Nigerian assets in 2024 after over 30 years of operation in the country.
The company sold its 54% stake in the OML 128 oil and gas lease to Chappal Energies for an estimated $1.2 billion.
The volatility of onshore oil operations led several oil giants to divest or sell their assets in Nigeria this year.
