Halting 'ComXits' in Nigeria

If you just said that the word 'comxit' is not in the dictionary, you are right.

It's a term I coined from the combination of two words 'company & exits' meaning the exits of companies from the Nigerian scene.

Not fewer than 5 multinational companies have exited Nigeria so far and this is not so good. So, how do we halt this exodus?

Africa’s biggest economy Nigeria since 2023 has been experiencing a season of massive exit of multinational companies.

This is traceable to the election period, as it is typical during election period, investors tend to approach the period with caution as they are uncertain about the outcomes of the election? and the policy directions of the incoming administration leading to a reluctance to make long-term investment decisions.

One can also say that what made matters worse was the artificial cash scarcity at the start of the year 2023.?

These and other decisions have contributed to the significant number of businesses exiting the Nigeria scene.?

More frightening is that these companies are mostly not more than 5 years of establishment in the country.?

I could mention a few….

Lazarpay– A crypto payment company co-founded by 21-year-old Emmanuel Njoku announced its shutting down operations in April after just 2 years.?

54Gene– 54 Gene a health data technology company announced a shut down in September 2023 bringing to an end? its 4-year existence in which it raised a whopping $45 million in three funding rounds.?

MABISCO Biscuit- In October 2023, Mayor Biscuits Company Limited popularly called MABISCO announced it is shutting down its multimillion-dollar plant in Agbara Industrial Estate, Ogun state after 7 years in existence.

Bolt Food– Bolt Foods joined the train of companies exiting the Nigerian marketplace in November.

Jumia Foods closed down operations in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast.?

From tech startups like Lazarpay to multinational giants like Equinor Procter & Gamble, the exodus has been noticeable.

The impact of these exits has been felt on many fronts as more persons have become unemployed, there has been reduction in the taxes collected by the government and also a fall in the gross domestic product.

With the inflation figures released by the National Bureau of Statistics for the month of February which stood at 31.70% and the Federal Government having in waiting a proposed bill to raise the expatriate levy for companies, should we expect more companies to exit the scene?

Join MarketSquare Host, Oluwapelumi has he engages with Head of Research/Economics, Nigeria Employers Consultative Association on Youtube.

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