The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed deep concern over the increasing exodus of companies from Nigeria.
A statement signed by Dele Kelvin Oye, Esq. National President, NACCIMA said the recent announcement of GlaxoSmithKline’s exit from Nigeria has dealt a major blow to the country’s manufacturing sector, which is already experiencing significant collapse amongst its local businesses.
While the current administration has commendably set Nigeria on a long-term path to economic progression, NACCIMA noted that some of the immediate positive economic policies of President Ahmed Tinubu have had an adverse effect on certain sectors of the country.
In particular, the sudden rise in the price of petrol and abolition of the official naira rate has caused a significant backlash, eroding the already earned income and trading capital of several multinational companies that had established their previous earnings based on the official naira rate at the time.
As a result, there has been a steady exodus of multinational companies and the collapse of several local companies, resulting in significant job losses and economic damage.
NACCIMA urged the government to urgently review the short-term impact of its economic policies as it relates to commitments already concluded for remittances/raw materials by the affected companies/ businesses to reverse the trend of companies leaving Nigeria.
“We call on the government to focus on creating a conducive environment for businesses to thrive and provide access to single-digit short and long-term financing to reduce the cost of doing business. The government should prioritize investments in infrastructure and power supply, provide tax incentives to encourage businesses to invest in Nigeria, and improve the ease of doing business by reducing bureaucratic bottlenecks,” Oye said.
Furthermore, NACCIMA urged the government to work collaboratively with the private sector to develop policies that will stimulate economic growth and create job opportunities in the country.
“We firmly believe that with the right policies in place, Nigeria’s economy can be revitalized and the country can become a hub for business and investment in Africa. In conclusion, it is crucial for the government to take urgent action to reverse the trend of companies leaving Nigeria and restore confidence in all sectors of the economy. NACCIMA maintains that sustainable development can only be achieved through collaboration between the private and public sectors, and we are committed to working with the government to ensure Nigeria’s economic success.”