In 2023, numerous companies encountered substantial challenges in Nigeria, leading to their exodus.
The decision to leave stemmed from various difficulties, including election-related uncertainties, financial constraints, currency instabilities, and broader economic turmoil within the nation.
Some of the companies are:
Lazarpay: This web3 and crypto payment company, founded by Emmanuel Njoku, shut down due to difficulties in raising funds to sustain its operations. Despite operating for only two years, funding challenges led to its closure in April.
GlaxoSmithKline Consumer Nigeria: GSK UK Group decided to stop selling prescription medicines and vaccines in Nigeria through its local operating companies due to challenges in accessing foreign exchange (forex). This decision forced them to switch to a third-party direct distribution model.
54Gene: Despite raising a substantial $45 million across three funding rounds during its 4-year existence, 54Gene faced internal issues. It experienced leadership changes, staff complaints, and legal problems, leading to its closure in September.
MABISCO Biscuit: Mayor Biscuits Company Limited, known as MABISCO, announced the shutdown of its multimillion-dollar plant in Ogun state. They aimed to sell the company and focus on other business areas, despite achieving a 5% market share in its 7-year history.
Sanofi-Aventis Nigeria Ltd: Similar to GSK, Sanofi Aventis Nigeria decided to cease operations in Nigeria and transitioned to a third-party distribution model for its pharmaceutical products. They cited reasons similar to GSK, but their chosen third-party distributor was not disclosed.
Equinor: The international oil company divested its stakes in Nigeria’s petroleum industry. Equinor Nigeria Energy Company (ENEC) sold its stakes in oil and gas leases and decided to focus on its international oil and gas portfolio rather than its Nigerian assets
Bolt Food: Bolt Foods opted to end its operations in Nigeria, citing a need to optimize resource utilization and streamline overall efficiency. This decision was part of their strategic restructuring.
Procter & Gamble (P&G): P&G dissolved its ground operations in Nigeria, switching to an import-only business model due to Nigeria’s macroeconomic problems and forex challenges. Economic issues led to difficulties in maintaining a dollar-denominated business in the country.
Jumia Foods: Jumia Foods ceased its food delivery services not only in Nigeria but also across various African countries. The company found the food delivery business in Africa challenging and chose to focus on selling physical goods, which offered a more viable path to profitability.
