Five multinational firms that pulled out of Nigeria in 2024

• Published On: 18 December 2024 at 21:33

Several multinational corporations have exited the country by selling their operations or transferring their stakes to new investors, while the Nigerian government emphasises recent multimillion-dollar investments.

The significant exodus of multinationals this year is primarily due to Nigeria's economic challenges, which include a depreciating naira, rising inflation and interest rates, and declining consumer purchasing power.

The Manufacturers Association of Nigeria reported that approximately 767 manufacturing companies closed last year.

According to the association, rising inflation, high interest rates, and exchange rate volatility will cause significant distress for 365 companies in 2023.

Although small and medium-sized businesses have been hit the hardest by Nigeria's harsh economic climate, large multinational corporations have also been impacted. Here are the five multinationals that left Nigeria in 2024:

Kimberly-Clark (KC)

Kimberly-Clark, the global personal care products giant, has announced that it will leave Nigeria in June 2024. Notably, the company had previously left the country in 2019 before returning in 2021 with a $100 million investment in Lagos.

Kimberly-Clark referred to its exit as a "difficult decision," stating that it would no longer manufacture, market, or sell its care products in Nigeria. The company blamed its decision on local economic challenges and the need to "refocus company strategic priorities globally."

Pick 'n Pay

Pick n Pay, the South African retail giant, has exited Nigeria after selling a 51% stake in a joint venture with A.G. Leventis.

Sean Summers, Chief Executive Officer, stated that the company left Nigeria to focus on its core operations in South Africa.

The company reported a pre-tax loss of ₦1.1 billion in the first half of 2024, despite only operating two stores in Nigeria over five years.

The pre-tax loss of ₦1.1 billion in the first half of 2024 was due to lower margins and higher borrowing costs.

Diageo

Diageo, a global leader in the alcoholic beverages sector, announced in June 2024 that it would exit Nigeria by selling its 58.02% stake in Guinness Nigeria Plc to Singapore's Tolaram Group.

Although Diageo will retain ownership of the Guinness brand, Tolaram has acquired the controlling stake in Guinness Nigeria Plc. Guinness Nigeria reported a loss after tax of ₦61.7 billion for the nine months ending March 31, 2024, compared to a profit of ₦5.9 billion the previous year.

Holcim

Holcim AG, the Swiss building materials giant, 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 exit Nigeria was motivated by a desire to capitalise on increased demand in the North American market, despite Nigeria's growing housing deficit.

The company's exit from Nigeria and Zambia highlights the low purchasing power of the populations in these African nations.

Equinor Nigerian Energy Company

Equinor, a Norwegian energy company, sold its Nigerian assets in 2024, after more than 30 years of operation.

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 prompted several oil companies to divest or sell assets in Nigeria this year.