Financial analysts and economists have explained why multinational companies continue to leave Nigeria, with global e-hailing company Uber becoming the latest firm to announce its exit from the country.

Uber announced its exit from Nigeria on Wednesday, September 2, 2026, joining at least 15 multinational companies that have either exited the Nigerian market, divested or wound down parts of their operations since 2023.

In the last three years, other multinational companies that have scaled back or discontinued operations in Nigeria include Unilever Nigeria Plc, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, Shoprite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, Bolt Food and Jumia Food Nigeria.

Between January and October 2024, at least five significant companies also exited or scaled back local production as businesses struggled with a challenging operating environment.

They included Microsoft Nigeria, TotalEnergies Nigeria, which was impacted by its divestment strategy, PZ Cussons Nigeria Plc, Kimberly-Clark Nigeria and Diageo Plc.

Other companies have also restructured their Nigerian operations. Heineken/Champion Breweries sold a majority stake to EnjoyCorp, Bolt Food shut down its food delivery operations, while Pick n Pay sold its 51 per cent stake and exited the Nigerian retail market.

Netflix also stopped commissioning Nigerian original productions, raising concerns about whether risk-adjusted returns still justify the capital required to operate in the country.

The list of companies that have departed Nigeria becomes even longer when the period is extended to 2020, with the number of firms that have exited or significantly reduced their presence approaching 75.

While Uber’s exit and those of some other multinational companies were not directly linked to Nigeria’s harsh economic realities, analysts have continued to blame structural challenges and the country’s business environment for making it difficult for investors to operate profitably.

This is despite recent improvements in some of Nigeria’s key macroeconomic indicators.

Nigeria’s Gross Domestic Product grew by 4.43 per cent in real terms in the second quarter of 2026, while inflation moderated to 15.43 per cent in July.

The naira has also remained relatively stable since the foreign exchange market liberalisation in 2023, trading at N1,320.56 per dollar on Monday, September 7, 2026.

Despite the improvement in the macroeconomic environment, analysts say microeconomic realities continue to weigh heavily on businesses and households.

Uber exit raises fresh concerns – Oyedokun

Reacting in a separate interview on Monday, financial expert and Professor of Accounting at Lead City University, Godwin Oyedokun, said the continued exit or retrenchment of multinational companies, including Uber, should be a major concern to the Nigerian government and policymakers.

Oyedokun, however, explained that it would be wrong to attribute Uber’s exit directly to the administration of President Bola Tinubu.

According to him, Uber’s decision reflects its global restructuring and strategic shift and is not necessarily an indication that the company was forced out by Nigeria’s economic conditions.

“The continued exit or retrenchment of multinational companies from Nigeria, including Uber, should concern policymakers, although it would be wrong to attribute every corporate exit directly to the Tinubu administration. Uber’s decision also reflects its global restructuring and strategic shift.”

Meanwhile, Prof Oyedokun pointed out that the pattern of multinational exits over the last three years or more highlights an important contradiction in Nigeria’s economy.

He explained that while Nigeria’s macroeconomic indicators may be improving, its microeconomic environment remains challenging.

According to him, businesses in Nigeria continue to face high energy and financing costs, exchange-rate risks, weak consumer purchasing power and regulatory uncertainties.

He urged the government to move beyond improved macroeconomic stability and create genuine economic competitiveness that allows businesses to grow rather than wind down operations.

He added that the real test of Tinubu’s economic reforms would be whether the improved economic statistics translate into stronger businesses and increased investment in Nigeria.

“However, the broader pattern highlights an important contradiction in Nigeria’s economy: macroeconomic indicators may be improving, while the microeconomic environment remains challenging. GDP growth, improved foreign reserves and moderating inflation are positive developments, but businesses still face high energy and financing costs, exchange-rate risks, weak consumer purchasing power and regulatory uncertainties.

“The real test of President Tinubu’s reforms is therefore not only whether the macroeconomic statistics look better, but whether businesses are investing, expanding and creating jobs. Nigeria must now move from macroeconomic stabilisation to genuine economic competitiveness. Good statistics are important, but they must ultimately translate into stronger businesses, more investment, jobs and improved living standards for Nigerians,” he told DAILY POST.

High operating costs erode multinational profits – Idakolo

On his part, the CEO of SD & D Capital Management, Gbolade Idakolo, explained that most multinational companies were initially attracted to Nigeria because of its large population and the potential for higher profits.

However, he said the projected profits of many of these companies have been eroded by declining consumer purchasing power and rising operating costs.

According to him, companies that could not withstand the economic realities had to exit Nigeria or move their operations elsewhere.

“The Nigerian economy under the Tinubu administration has been improving; at least some key indices have turned positive. However, the business environment remains hostile because most of the government’s reforms have not translated to real-time economic reprieve for businesses and Nigerians as a whole.

“The cost of doing business in Nigeria is still very high, with infrastructural gaps yet to be filled, coupled with security challenges.

“Most of these multinationals were attracted by the population of the country and believed that if they could get a share of the business in their sector, it would definitely be profitable. The projected profits have been eroded by the reduction in the purchasing power of Nigerians, which can be attributed partly to the higher exchange rate and inflation.

“The businesses also battle with high operating expenses, which are caused by the high cost of energy. Most of these companies that still remain in the country have either downsized or sold part of their business.

“Those that cannot withstand the economic realities in the country have exited the country and moved their operations elsewhere,” he told DAILY POST.