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

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 is South African grocery retailer Pick n Pay. On Monday, the company confirmed it would exit the Nigerian market by selling its 51% stake in a joint venture. Chief Executive Officer Sean Summers stated that this decision aligns with the company’s broader restructuring plan outside its home market.

Pick n Pay initially entered Nigeria in 2016 through a partnership with A.G. Leventis (Nigeria), opening its first store in 2021 and operating two locations. This venture aimed to tap into one of Africa’s largest consumer markets, driven by Nigeria’s growing demand for grocery retail. However, its exit highlights the impact of economic challenges, naira instability, and regulatory hurdles on the viability of investments 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, noted that over ten companies shut down operations in 2020 alone, with more than 20 companies exiting the country during that year.

Here’s a year-by-year breakdown of companies that exited the Nigerian market from 2020 to mid-2024:

**2020:**
In 2020, more than ten companies exited Nigeria, as the impact of economic instability became clear. 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. Among those that 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, including:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd

**2023:**
In 2023, the wave of exits continued as over ten major companies pulled out, 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