LIVE UPDATES
Nigeria's economy is predicted to lose $335 million (roughly N310 billion) in foreign direct investments (FDI) as a result of more multinational corporations withdrawing from their ground operations in the country.
It is the total asset value of the two most recent exit announcements from Procter & Gamble (P&G), a major global player in the fast-moving consumer goods (FMCG) segment, and Equinor, another global player in the upstream oil sector.
Procter & Gamble (P&G), an American multinational consumer goods company, has announced that it will be ending its physical presence in Nigeria and moving from local production to importation only.
After selling its operations in Nigeria, including its stake in the Agbami oil field, to the Nigerian-owned energy company Chappal Energies, Equinor is leaving the country.
P&G Chief Financial Officer Andre Schulten gave an explanation for the decision, citing "the challenging business environment in Nigeria as well as the difficulty in creating US dollar value" as the reasons.
In a statement, Nina Koch, Senior Vice President for Africa Operations at Equinor, said: “Nigeria has been an important part of Equinor’s international portfolio over the past 30 years.
“This transaction realises value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”
Due to the challenging operating environment in Nigeria, two other significant multinational corporations with assets valued at over $800 million, Consumer Nigeria Plc and Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, withdrew from the country in the second half of this year.
