The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, on behalf of the Nigerian Government, expressed concern over the continuous relocation of companies to the neighboring country, Ghana.
Twitter, Google AI lab and Fan milk, are a few multinational companies that have chosen Ghana over Nigeria in recent times for a headquarter or research lab. Other companies with operational bases in Nigeria are closing down their offices and factories and moving to other African countries to continue business. This trend is becoming a growing concern for the Nigerian government, as it implies Africa’s most populous country is becoming less attractive for business.
Why this is happening
Although the reasons for these companies’ exit from Nigeria are particular to the sector they are in, there are common factors generally affecting businesses all over the country. These factors include devaluation of naira, government policies, insecurity, high inflation rates, poor power supply, etc.
- The federal government policies such as banning of foreign exchanges available for importing merchandise into Nigeria, limiting operations on debit cards to $20 per month and devaluation of the naira creates a harsh environment for businesses.
The colossal effect of the relocation of multinational companies from Nigeria is causing loss of jobs, reduction in forex supply in the economy, lower company income tax to the government, reduction in disposable income of subsidiary companies.
What they are saying
Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, said the Federal government is seeking ways to increase foreign investment in the country and also sustain existing ones.