Firms That Left Nigeria from 2020 to 2024 Due to Economic Challenges

By Daniel Edu

In recent years, Nigeria has seen a growing trend of multinational and local companies shutting down or relocating their operations due to economic challenges, currency volatility, and rising operational costs.

The latest company to announce its departure from Nigeria is the South African grocery retailer Pick n Pay, which confirmed on Monday that it will exit the market by selling its 51% stake in a joint venture. Its Chief Executive Officer, Sean Summers, stated that this decision aligns with the company’s broader restructuring plan outside its home market.

Pick n Pay, which initially entered Nigeria through a partnership with A.G. Leventis (Nigeria) in 2016, opened its first store in 2021 and operated two locations. This venture was viewed as a strategic move into one of Africa’s largest consumer markets, aiming to tap into Nigeria’s growing demand for grocery retail. However, the exit suggests that economic challenges, naira instability, and regulatory hurdles have negatively impacted the viability of this investment in Nigeria’s competitive retail sector.

Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, reported that over ten companies shut down operations in 2020 alone, with more than 20 companies exiting the country.

Year-by-Year Breakdown of Companies Exiting the Nigerian Market (2020 – Mid-2024)

2020:
In 2020, more than ten companies exited the Nigerian market as the impact of economic instability became evident. Notable closures included:

• Standard Biscuits Nigeria Ltd
• NASCO Fiber Product Ltd
• Union Trading Company Nigeria PLC
• Deli Foods Nigeria Ltd

2021:
The trend 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

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

2023:
The wave of exits continued in 2023, as over ten 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 ten 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)
• PZ Cussons Nigeria PLC
• Kimberly-Clark Nigeria
• Diageo PLC