*Tinubu
By The Pathfinder
Friday June 14, 2024
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Former member of the defunct All Progressive APC Presidential Campaign Council (PCC) and lawmaker, Olatunbosun Oyintiloye has appealed to President Bola Ahmed Tinubu to stop the continuous exit of multinational companies from Nigeria by providing an enabling environment for their operations.
Oyintiloye stated this in Osogbo, the Osun State capital last Sunday.
Last week Guinness joined a long list of multinationals, like GlaxoSmithKline and Microsoft, that have left Nigeria, citing the harsh economic climate in the country.
The brewery company claimed it recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024, just a few months after Mr. Tinubu floated the naira to unify the currency’s value on the official and parallel foreign exchange markets.
Guinness Nigeria’s N61.7 billion loss after tax in Q3 was a 1,000 percent decrease from the N5.9 billion profit generated in the same period last year leading Diageo, Guinness’ parent company, to sell its 58.02 percent majority stake to the Singaporean group.
Guinness sold its controlling shares to Singaporean conglomerate Tolaram Group on Tuesday, June 11.
The APC chieftain said the recent announcement by Kimberly-Clark, the makers of Huggies to exit the country is a worrisome development.
He also said that GlaxoSmithKline Consumer Nigeria Plc, French pharmaceutical company, Sanofi-Aventis Nigeria Limited, and Procter and Gamble have concluded plans to leave Nigeria.
According to him, In 2023, Unilever stopped the production of its legendary OMO, Sunlight, and Lux home and skincare brands in a bid to cut costs to concentrate on higher growth opportunities.
Oyintiloye noted that the exit of these multinational companies does not only affect manufacturing alone, noting that the oil sector was also affected.
According to him, no fewer than 26 oil companies and investments pulled out and sold their stakes to domestic investors.
“These include influential oil mining multinationals such as Shell, ExxonMobil, and ENI.
“These companies left mainly because of heightened insecurity in the Niger Delta and the inability of the government to provide their counterpart funds to enable the joint venture agreements to explore and exploit new oilfields,” he said.
The APC chieftain said the exit of these companies would not only result in job losses but also affect the value chain and decline in the growth of the country’s Gross Domestic Product (GDP).
The former lawmaker added that the continuous exit of multinational companies in Nigeria, if not checked, could lead to a reduction in foreign investment inflows, massive job losses, reduction in economic output, among others.
Oyintiloye described the exit of some multinational companies from Nigeria as worrisome and therefore appealed to President Tinubu to do everything possible to reset the economy and attract more investors to the country.
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