Unilever, GSK, 4 other major foreign companies that exited Nigeria in 2023

A recent wave has swept some multinational companies in Nigeria out of the country due to the toxic environment for business.

This is worsened by the fuel subsidy removal which further toughened the ease of doing business in the country.

From fast-moving consumer goods (FMCG) companies to energy and pharmaceutical companies, the inability to repatriate funds in Nigeria and the unpredictable local currency against foreign currencies has triggered multinationals to bid the country goodbye.

The most recent case is Procter & Gamble, which announced it would dissolve on-ground operations in the country during its presentation at the Morgan Stanley Global Consumer and Retail Conference.

The company clarified that its most recent strategic choice resulted from the macroeconomic realities in Nigeria and that it was challenging for an organization denominated in dollars to conduct business in that country.

Legit.ng has computed the list of some multinational companies that left Nigeria in 2023:

Unilever

One of the leading consumer goods companies, Unilever Nigeria Plc, earlier in the year announced a plan to stop manufacturing some of its popular products, including Omo and Lux in Nigeria.

The manufacturer says it will exit two categories, Home Care and Skin Cleansing, which will affect the aforementioned brands.

Other brands affected are Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, vaseline, Lifebuoy, and Rexona products, amongst many others.

Unilever also noted that the new model would reduce exposure to devaluation and currency liquidity.

GSK Plc

GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, announced plans to leave Nigeria after 51 years of operations.

The company said in a statement seen by Legit.ng that it disclosed that the British firm informed GlaxoSmithKline Consumer Nigeria Plc of its plans to cease the commercialisation of its top medicines and vaccines in the country via GSK local operating companies and move to a third-party direct distribution model.

The company added that it had stated its plans to end its distribution agreement in the coming months and appoint a third-party distributor in Nigeria to supply healthcare products.

Sanofi-Aventi Nigeria

Sanofi-Aventi Nigeria, a leading French pharmaceutical company, recently decided to close its direct operations in Nigeria.

The company planned to adopt a third-party model to distribute its products in Nigeria from 2024.

According to the company's memo, the global pharma company will embark on a transformative business model in Nigeria in February 2024.

The company explained that its new model will enable the commercialisation of Sanofi's portfolio of medicines by a yet-to-be-named third-party distributor.

Bolt Food

Bolt declared that it would be discontinuing its meal delivery service across the nation as of December 7, 2023.

To enhance its total efficiency and optimise its resources, the corporation announced its decision.

The firm said in a statement: “At this time, we have made the difficult decision to discontinue our food delivery operations in Nigeria due to business reasons.”

Procter & Gambles

Leading consumer goods manufacturer Procter & Gamble has revealed plans to dissolve its on-ground operations in Nigeria and turn the country into an import market.

The consumer giant stated that it is challenging to do business in Nigeria as a dollar-dependent company and that the macroeconomic reality in Nigeria is responsible for its decision.

It stated: "So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment."

Equinor

A Norwegian energy corporation Equinor declared that it has sold its Nigerian operations, including its stake in the Agbami oil field, to Chappal Energies, a Nigerian company. Equinor's three-decade presence in Nigeria comes to an end with this transaction.

The sale of Equinor Nigeria Energy Company (ENEC), which owns a 53.85% interest in oil and gas lease OML 128—including a unitised 20.21% stake in Chevron-operated Agbami oil field—is covered by the agreement.

Since its establishment in 2008, the Agbami field in Nigeria has produced more than 1 billion barrels of oil, and Equinor has played a major role in the growth of the country's oil and gas industry.