Foreign investors pull out N310bn assets, as P&G, Equinor exit Nigeria

Against the backdrop of more exits from ground operations in Nigeria by more multinational companies, Nigeria’s economy is expected to lose $335 million (about N310bn) in Foreign Direct Investments, FDI.

The amount represents the combined assets value of the two latest exit announcements by Procter & Gamble, P&G, a major global player in the Fast Moving Consumer Goods, FMCG, segment and Equinor, another global player in the upstream oil sector.

Procter & Gamble (P&G), an American multinational consumer goods, says it has plans to transition from local production to solely importing its products as the firm winds down its on-ground presence in Nigeria.

Equinor is exiting after selling its Nigerian business, including its share in the Agbami oil field to Nigerian-owned energy company Chappal Energies.

Explaining the decision, Andre Schulten, chief financial officer, P&G, said the decision is a result of “the challenging business environment in Nigeria, as well as the difficulty in creating US dollar value.”

On his part, Equinor’s Senior Vice President for Africa Operations, Nina Koch, in a statement, said: “Nigeria has been an important part of Equinor’s international portfolio over the past 30 years.

“This transaction realises value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”

In the second half of this year two other major multinational companies, GlaxoSmithKline, GSK, Consumer Nigeria Plc and Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, pulled out assets estimated at over $800 million from Nigeria, citing harsh operating environment.

https://www.vanguardngr.com/2023/12/foreign-investors-pull-out-n310bn-assets-as-pg-equinor-exit-nigeria/

Hmm

Hope next year will be fair.

On the eve of Buhari's exit, people photoshopped certificate of survival thinking PBAT will be better off.

If you check my previous posts, I predicted a Lagos economic burst, I predicted a good number of companies will be making horrendous end if the year losses with shareholders asking for nothing but their investments.

Lagos is history. Bookmark this comment.

APC killed this country & is now burying it.

Some other companies will take their place.

So what?, two foreign companies worth 310billion naira worth of assets scramed back to whatever hole they came from. These guys are here for the $$, not for you and i. To the ignorant folks, these guys operates their businesses in dollar value, they only care about the dollar and how much of it they can get from us back to their countries. Both foreign companies are 310billion naira in assets while First bank, one of our biggest banks is worth over 100billion naira, not to mention a few other top banks. Nigeria economy is going to be worth 1trillion in 7yrs, a gale of capital flight is never going to scare a big economy as ours. Decades back, big companies as Dunlop, Michelin, Bata, name them, all left and Nigeria keeps going strong. We remain the biggest economy in Africa. And with the right policies, FDI will keep trooping in like a river flow.

FreestuffsNG will be in sifia pains. Ogun state will soon be empty. 😂😂 karma working hard.

We told the economic iliterates to groom local firms but they are hungry for IGR

Meanwhile, a criminal mandate gang was telling people about an illusory hope being renewed.

Professor of doom. You are confessing your destiny.

kettykin:
If you check my previous posts, I predicted a Lagos economic burst, I predicted a good number of companies will be making horrendous end if the year losses with shareholders asking for nothing but their investments.

Lagos is history. Bookmark this comment.

ElSudani:
Some other companies will take their place.

you mean , the association of skull 💀 miners ⛏️ ..

gabbytabby:
Professor of doom. You are confessing your destiny.

.your type of hypocrisy is incursion and infectious, I don't need to engage you further

femisplash:
So what?, two foreign companies worth 310billion naira worth of assets scramed back to whatever hole they came from. These guys are here for the $$, not for you and i. To the ignorant folks, these guys operates their businesses in dollar value, they only care about the dollar and how much of it they can get from us back to their countries. Both foreign companies are 310billion naira in assets while First bank, one of our biggest banks is worth over 100billion naira, not to mention a few other top banks. Nigeria economy is going to be worth 1trillion in 7yrs, a gale of capital flight is never going to scare a big economy as ours. Decades back, big companies as Dunlop, Michelin, Bata, name them, all left and Nigeria keeps going strong. We remain the biggest economy in Africa. And with the right policies, FDI will keep trooping in like a river flow.

To create consolation no de hard una.

Nigeria business environment is very unfriendly one irresponsible political office holder can pull down your business with just flimsy excuse

Hmmmmmmm..............
No patriotic Nigerian will read the news of these major blue chip companies exiting Nigeria and go to bed feeling at ease.
These companies are striking a blow at the heart of the ordinary Nigerian in this trying period,but I believe this is not a time to be despondent or sink into despair.
I believe this is the time the Ministry of Labour,the Nigeria Labor congress and the Trade Union Congress must be up and doing.
A lot of Workers will definitely lose their jobs,so government should please ensure these companies have a retirement package that's befitting and liveable to those innocent employees.
There are people who will never be compensated like logistics contractors,some outsourced duties like cleaners, gardeners,Drivers and many more who are not directly employed by these companies.
To all the above,I can only wish them well in their future endeavors.
We must begin to tell.ourselves some hard truth about these companies,Nigeria must no longer be at the mercy of these companies who are only in Nigeria to repatriate Foreign currency back to their Headquarters.
I know Asiwaju is really trying to bring foreign capital to Nigeria but we must never do it at the expense of hard-working Nigerians.
Any company opening a factory in Nigeria must henceforth leave an equity ownership for Nigerians.
No company must be owned 100% by foreigners,if not in another 10 years from now,we will repeat this cycle all over again.
For everyone who's losing their jobs because of the exit of these companies,May Eledumare strengthen you at this difficult time.
God bless Nigeria.