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Published on 2024-02-20 17:10:23
The House of Representatives in Nigeria has resolved to launch an investigation into the departure of several multinational companies from the country, a move sparked by concerns over the challenging macroeconomic environment. The resolution was reached during the Tuesday plenary session, following the motion moved by Patrick Umoh (APC, Akwa Ibom) and co-sponsored by Lukman Mudashiru and Paul Ekpo.
The motion was introduced to address the alarming exit of foreign companies from Nigeria, particularly those in the manufacturing and energy sectors. Many of these companies have attributed their departure to the current foreign exchange crunch and the devaluation of the naira, resulting in diminished earnings when converted to dollars.
Among the companies that have exited Nigeria or ceased production due to the harsh economic environment include Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Stone Industries, Procter and Gamble, Sanofi-Aventis, and Equinor. Additionally, Bolt Food discontinued its food delivery operations due to economic challenges, while Jubilee Syringe Manufacturing declared temporary redundancy due to unforeseen business challenges.
Mr. Umoh emphasized that the mass exodus of companies has significant negative consequences on Nigeria’s economic growth potential, as it leads to job losses, increased poverty, diminished government revenue, and reduced investor confidence in the Nigerian market. He also highlighted that the challenging business environment, electricity shortages, constant naira devaluation, high taxes, insecurity, poor infrastructure, port congestion, and stringent government policies have been contributing factors to the departure of multinational companies from the country.
In response to these concerns, the House of Representatives directed its committees on Industry, Labour, Employment, and Productivity to investigate the closure of local companies and the departure of multinational companies from Nigeria. The committees were also tasked with identifying the factors hindering the ease of doing business in Nigeria and presenting their findings within four weeks.
Moreover, the House urged the federal government and relevant agencies and ministries to implement measures to address the challenges confronting the nation, particularly in the manufacturing sector, and create a conducive environment for businesses to thrive. They also called for collaboration between the federal government and the private sector to develop policies that would stimulate economic growth and create job opportunities in the country.
The motion was adopted without debate, signifying the urgency and importance attached to addressing the departure of multinational companies from Nigeria and its potential impact on the country’s economy. This move by the House of Representatives reflects a proactive approach to identifying and rectifying the existing constraints that have led to the departure of foreign companies and the closure of local businesses.
In conclusion, the House of Representatives’ resolution to probe the exodus of multinational companies from Nigeria underscores the need to address the challenges facing the country’s business environment and promote a more favorable climate for investment and economic growth. By taking decisive action to investigate and rectify the factors contributing to the departure of foreign companies, Nigeria aims to create a more conducive environment for businesses to thrive and contribute to the nation’s economic development and prosperity.
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