Rédaction Africa Links 24 with Umar Audu
Published on 2024-03-02 11:08:54
Peter Obi, the presidential candidate of the Labour Party in the 2023 general elections, expressed his concerns over the increasing number of companies leaving Nigeria. He made these remarks on his X platform, highlighting the recent audit report of Nestle Nigeria Limited, which revealed a loss of over N100 billion.
Obi criticized the business environment in Nigeria, stating that it is deteriorating rapidly under President Bola Tinubu’s administration. He emphasized that the poor handling of the economy by the current government would discourage both foreign and local investors from establishing businesses in the country.
Referring to the exit of Procter and Gamble and GlaxoSmithKline from Nigeria, Obi lamented the loss of these prominent companies and their impact on the Nigerian economy. He also mentioned the audited report of Nestle Nigeria, which showed a significant decline in revenue and a consequent loss of shareholder capital.
Nestle Nigeria, a company that started operations in 1961 and considered Nigeria a strategic market, had seen its revenue drop to a third of what it was in 2014 due to the collapse of the naira exchange rate to the dollar. This decline led to a loss of about $70 million, highlighting the challenges of doing business in Nigeria and the deteriorating business environment.
The significant loss experienced by Nestle Nigeria serves as a warning to other global companies about the challenges they may face in Nigeria. Obi emphasized the importance of creating a conducive environment for businesses to thrive, both local and foreign, in order to boost the economy and generate employment opportunities for the youth.
He stressed the need for more rigorous thinking to devise solutions for the economic challenges facing the country. Encouraging production and creating a favorable business environment through effective fiscal and monetary policies are essential steps to attract investment and promote economic growth in Nigeria.
Obi urged for a shift from a consumption-driven economy to one focused on production, emphasizing the need to support local and foreign production companies to operate successfully in Nigeria. By doing so, he believes that Nigeria can achieve its full potential and build the “New Nigeria” envisioned by many.
In conclusion, Peter Obi’s concerns about the exodus of companies from Nigeria underscore the importance of addressing the challenges facing the business environment in the country. By implementing policies that support investment and production, Nigeria can create a thriving economy that benefits both its citizens and the global business community.
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