In recent years, Nigeria has seen more and more multinational and local companies shutting down or moving their operations elsewhere due to economic challenges, currency fluctuations, and rising costs.
The most recent company to announce its exit from Nigeria is the South African grocery retailer Pick n Pay, which confirmed on Monday that it will leave the market by selling its 51% stake in a joint venture.
Chief Executive Officer Sean Summers explained that this decision was part of the company’s wider restructuring plan beyond its home market.
Pick n Pay entered Nigeria in 2016 through a partnership with A.G. Leventis (Nigeria), opening its first store in 2021 and later operating two locations.
This venture was viewed as a strategic entry into one of Africa’s largest consumer markets, aiming to capitalise on Nigeria’s increasing demand for grocery retail.
However, the exit indicates that economic challenges, instability of the naira, and regulatory hurdles have affected the viability of this investment in Nigeria’s competitive retail sector.
According to an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Vincent Nwani, over 10 companies shut down operations in 2020 alone and more than 20 companies exited the country.
Below is a year-by-year breakdown of companies that exited the Nigerian market from 2020 to mid-2024.
Companies That Exited In 2020
In 2020, more than ten companies exited the Nigerian market, as the impact of economic instability and other operational challenges became evident. Notable closures included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd
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Companies That Exited In 2021
The departure of companies escalated in 2021, with over 20 firms shutting down operations in Nigeria. Among those who left were:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd
Companies That Exited In 2022
The trend persisted in 2022, with more than 15 prominent brands ceasing operations in the country, including:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd
Companies That Exited In 2023
The wave of exits continued in 2023, as over 10 major companies pulled out from Nigeria, citing profitability concerns and challenging business conditions. Notable departures included:
– Unilever Nigeria PLC
– Procter & Gamble Nigeria
– GlaxoSmithKline Consumer Nigeria Ltd
– ShopRite Nigeria
– Sanofi-Aventis Nigeria Ltd
– Equinox Nigeria
– Bolt Food & Jumia Food Nigeria
2024 (January – October)
In the first six months of 2024, at least five significant companies exited, as the business climate remained difficult. These included:
– Microsoft Nigeria
– Total Energies Nigeria (impacted by divestment strategies)
– Kimberly-Clark Nigeria
– Diageo PLC
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