Following the reported closure of GlaxoSmithKline Consumer Nigeria Plc’s activities in the country, shareholders have requested adequate reimbursement for their investment.
The Punch reported that in a statement released on Thursday and signed by the company secretary for GSK’s Nigerian subsidiary, Frederick Ichekwai, the company said it would cease operations in Nigeria and switch to a third-party distribution model for its pharmaceuticals and consumer healthcare products.
The Chairman Emeritus of the Independent Shareholders Association of Nigeria, Sunny Nwosu, commented on the situation and criticized the government for fostering an unattractive business environment that was driving enterprises abroad.
But he insisted that Nigerian investors must receive fair compensation.
“That is a global decision. They did it in South Africa, East Africa, and North Africa, but the Nigerian government is still owing the majority of them. I’ve been stating that any corporation that imports dollars to conduct business in Nigeria is qualified to repatriate its profits,” he explained.
“Nigerian investors, who have kept the enterprise afloat all these years, must receive fair remuneration from them. When it is over, I think Nigerian shareholders will be glad to say, “Okay, they’re leaving, and we’re getting a good deal.” So they’ll put their money somewhere else.”
An economist at the University of Kaduna, Seth Akutson, predicted that GSK’s decision will have an effect on unemployment in Nigeria and send an incorrect message to the global business community.
“It will also send the incorrect signal to the global community. It will have an effect on the economy. Production costs, infrastructure costs, the state of the economy, the number of taxes, and the ease of doing business are all unfavourable. They are being driven away by these issues. So they will relocate to places with favourable business climates,” he added.
