Companies That Left Nigeria Due to Economic Challenges From 2020

Nigeria has faced significant economic challenges for a while now, which have forced many multinational and local companies to shut down or relocate their operations. Rising operational costs, currency volatility, and complex regulations have made it increasingly difficult for businesses to thrive in the country.

According to Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, over ten companies exited Nigeria in 2020 alone, with more than 20 companies leaving the country that year. 

One of the most recent examples of this trend is South African grocery retailer Pick n Pay, which announced its exit from Nigeria in 2024. The company confirmed it would sell its 51% stake in a joint venture, citing the need to restructure outside its home market. 

Pick n Pay initially entered Nigeria in 2016 through a partnership with A.G. Leventis, opening its first store in 2021 and operating two locations. However, the combination of economic instability and regulatory hurdles has affected its viability in the competitive retail sector.

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

2020:

• Standard Biscuits Nigeria Ltd
• NASCO Fiber Product Ltd
• Union Trading Company Nigeria PLC
• Deli Foods Nigeria Ltd

In 2020, the impact of economic instability became apparent, prompting these companies to shut down their operations due to various challenges.

2021:

• Tower Aluminium Nigeria PLC
• Framan Industries Ltd
• Stone Industries Ltd
• Mufex Nigeria Company Ltd
• Surest Foam Ltd

The trend escalated in 2021, with over 20 firms exiting Nigeria as operational difficulties intensified.

2022:

• Universal Rubber Company Ltd
• Mother’s Pride Ventures Ltd
• Errand Products Nigeria Ltd
• Gorgeous Metal Makers Ltd

More than 15 prominent brands ceased operations in Nigeria in 2022, highlighting the ongoing economic challenges.

2023:

• Unilever Nigeria PLC
• Procter & Gamble Nigeria
• GlaxoSmithKline Consumer Nigeria Ltd
• ShopRite Nigeria
• Sanofi-Aventis Nigeria Ltd
• Equinox Nigeria
• Bolt Food & Jumia Food Nigeria

The exodus continued in 2023, with over ten major companies leaving Nigeria. These companies cited profitability concerns and challenging business conditions as primary reasons for their departures.

2024 (January – October):

• Microsoft Nigeria
• Total Energies Nigeria
• PZ Cussons Nigeria PLC
• Kimberly-Clark Nigeria
• Diageo PLC

In the first six months of 2024, at least five significant companies exited, indicating that the business climate remained difficult. The struggles faced by these firms reflect the broader economic issues affecting Nigeria, including currency instability and high operational costs.