Connect with us

News

Economic Crisis: Huge job losses as 16 multinationals exit Nigeria

Published

on

Spread the love

As Nigeria battles an economic crisis sparked by the government’s twin policies of petrol subsidy removal and unification of FX windows, United Kingdom-based Diageo joined about 15 other multinational companies that have exited the country in the past three years.

Diageo is the latest to announce its departure on Tuesday, June 11 when it said it will sell its 58.02% stake in Guinness Nigeria to Tolaram.

Diageo joins others like Kimberly-Clark, manufacturers of Huggies and Kotex brands of diapers; US-based Procter and Gamble (P&G); GlaxoSmithKline (GSK); Unilever and Sanofi-Aventi Nigeria, who are either exiting completely or reducing their exposure in a country facing its worst cost-of-living crisis in decades.

Unilever Nigeria announced its exit from the home care and skin cleansing markets in Nigeria in November 2023, saying it did so “to find a more sustainable and profitable business model.”

Procter & Gamble was the last to announce its exit from the country the same year.

Similar reasons given by these and other companies include high energy costs, currency depreciation, insecurity etc.

Maduka College Advert

The Federal Government itself acknowledged these challenges in an interview granted by Minister of Finance, Wale Edun on Channels Television’s Sunday Politics programme, where he said “lack of a liquid foreign exchange market was the major reason why some multinational companies exited Nigeria,” explaining that the inability of the exiting multinationals to access foreign exchange was a major impediment to their operations in the country.

Weighing-in, the Director-General of Nigeria Employers’ Consultative Association, NECA, Adewale Oyerinde, disclosed that at least 15 multinationals have either divested or partially closed operations in the country in the last three years.

Oyerinde, in his assessment, stated: “Over 15 organisations, with a combined value-chain staff strength of over 20,000 employees, have either divested or partially closed operations,” lamenting that this has “dire consequences not only for organised businesses but also for labour, government revenue and the households; massive job losses across sectors, which would continue to create insecurity challenges”.

Oyerinde added, “When NECA examined the exit of prominent companies like GSK, Sanofi, Procter & Gamble, Nampak, and others, who had been doing business in Nigeria for decades and were huge employers of labour, it was worried about the ripple effect on the broader business ecosystem.

“Within the value chain, numerous enterprises serve as suppliers to these major corporations, and their sustainability is significantly compromised when the primary businesses they cater to face extinction.

“The survival prospects of these secondary businesses are at stake, and their employees are also at risk, as the departure of the main clients could lead to their demise. The crisis within the value chain deserves more attention than it currently receives”.

Other sectoral group leaders and analysts maintain that the continuous exit of multinational firms would dampen Nigeria’s $1trn GDP target of President Bola Tinubu’s administration.

The President had, at the 29th Nigeria Economic Summit in Abuja, told business leaders and Nigerians that Nigeria’s economy can grow to $1 trillion by 2026.

Analysts believe the persistent exit of multinational companies from the country is set to impact negatively on this target.

Data from the National Bureau of Statistics (NBS) revealed that the performance of the GDP in the first quarter of 2024 was driven mainly by the services sector, which recorded a growth of 4.32 per cent and contributed 58.04 per cent to the aggregate GDP, whereas the nominal GDP growth of the manufacturing sector in the first quarter of 2024 was recorded at 8.21 per cent (year-on-year), 9.64 per cent points lower than the figure recorded in the corresponding period of 2023.

Real GDP growth in the manufacturing sector in the first quarter of 2024, on its part, was 1.49 per cent (year-on-year), lower than the same quarter of 2023.

Reacting to this, President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye said, “MAN expects the government to frontally address insecurity, improve electricity supply, promote fiscal sustainability and ensure policy consistency.

“Among other priorities, the fiscal authority must also lend supportive measures by adequately incentivising the manufacturing sector and other productive sectors.

“This is very important to boost non-oil export earnings in addition to the increase in oil export proceeds occasioned by increased oil production, rising global oil prices and the coming on stream of the Dangote Refinery”.

Director-General of Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, also speaking on the issue, said: “Over the last few months, there has been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by the multinationals, and this trend is worrisome.

“We have seen the likes of Unilever Nigeria, GlaxoSmithKline, and recently now Guinness Nigeria Plc.

“In Nigeria, lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, have taken a toll on many businesses in the country.”

The chamber recommended that the government should implement measures to stabilise and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments, also imploring the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.

“Further, the Chamber urges the government to engage multinational corporations and the business community to understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria. The CBN should prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability,” Almona said.

National President of the Association of Small Business Owners of Nigeria, ASBON, Femi Egbesola, maintained that multinationals are among the companies that contribute largely to the country’s GDP and earnings.

“We cannot be talking of growing our economy when the real investors are leaving. Assuming they are leaving and the indigenous ones are increasing, it would have been a different thing. But that is not the case. You make income as a nation when you have investments and investors,” he said.

However, since the coming of the Tinubu administration, Tinubu and Edun, among others, have been speaking on efforts being put in place towards revamping the economy, encouraging Foreign Direct Investment (FDI) and also making local industries vibrant and competitive.

Whether the assurances of Edun, who, on the Channels Television’s Sunday Politics programme, said, “recent executive orders signed by President Bola Tinubu have improved the investment climate … and also disclosed that tax reform proposals aimed at simplifying doing business for local and foreign manufacturers are being considered as part of an Economic Stabilization Package,” would stem the flow of multinationals exiting the country, only time will tell. (Sunday Vanguard)

News

BREAKING: US, Nigerian Forces kill ISIS Commander in Nigeria, Says Trump

Published

on

Donald Trump
Spread the love

United States and Nigerian forces Friday killed a senior ISIS commander, Abu-Bilal al-Minuki, believed to be the second most dreaded terrorist in the world.

US President Donald Trump broke the news in a Truth Social post late Friday night.

“Tonight, at my direction, brave American forces and the Armed Forces of Nigeria flawlessly executed a meticulously planned and very complex mission to eliminate the most active terrorist in the world from the battlefield,” Trump said.

“Abu-Bilal al-Minuki, second in command of ISIS globally, thought he could hide in Africa, but little did he know we had sources who kept us informed on what he was doing.

“He will no longer terrorize the people of Africa, or help plan operations to target Americans. With his removal, ISIS’s global operation is greatly diminished.

“Thank you to the Government of Nigeria for your partnership on this operation. GOD BLESS AMERICA! President DONALD J. TRUMP.”

Maduka College Advert

This is not the first strike Trump has ordered on terrorists in Nigeria, who he has accused of persecuting Christians in the West African country.

In December, Trump said he had directed a “powerful and deadly strike against ISIS” in northwestern Nigeria, who he said had been killing innocent Christians.”

See Trump’s full statement on Truth Social media below

 

Continue Reading

News

U.S.-based Nigerian jailed 115 months for money laundering, romance scam

Published

on

Spread the love

A Nigerian man, Charles Nnamdi Emesim, has been sentenced to 115 months in prison in the United States for conspiracy to commit money laundering linked to a decade-long romance and internet fraud scheme that defrauded at least 23 victims of more than $700,000.

The sentence was handed down on Wednesday by U.S. District Judge Robert Wier, according to a statement issued on Thursday by the U.S. Department of Justice.

The statement said Emesim, 53, who is legally resident in Newark, New Jersey, was convicted for conspiracy to commit money laundering after authorities found that he received and laundered proceeds from “internet- and telephone-enabled scams,” including romance scams, lottery scams, inheritance scams, investment scams, government imposter scams, and medical expense scams.

According to the department, between December 9, 2013, and June 28, 2024, Emesim operated at least 17 bank accounts under his name and the names of his companies, Chadon Export and Chadon Trucking.

Investigators said at least 23 victims across the United States were defrauded into sending more than $700,000 through cash deposits, cashier’s checks, money transfers, and wired payments into accounts controlled by Emesim.

One of the victims, described as “a senior citizen and widow living in the Eastern District of Kentucky,” was allegedly deceived through a romance scam involving a man identified as “Michael Oliver.”

Maduka College Advert

The victim was reportedly made to believe she was in a romantic relationship and was introduced to a supposed “customs agent” identified as Samuel Rock to facilitate a transfer of wealth.

According to the statement, the victim later travelled to Lexington airport in Kentucky, where she met the supposed Customs agent in person, handed him additional money, drove him to a local store, and bought him a computer tablet.

“The Court found that Emesim was the individual who impersonated ‘Customs Agent Rock’ when meeting with this victim in person,” the statement added.

Authorities said the victim lost “tens of thousands of dollars” through cash payments, cashier’s checks, prepaid debit cards, and gift cards sent to Emesim and his associates.

The Justice Department further stated that Emesim frequently withdrew victims’ funds in cash or transferred the money into accounts belonging to relatives, businesses, or family members in Nigeria.

Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky, described romance scams and financial fraud schemes as “predatory crimes” that rely on “deception, emotional manipulation, and calculated exploitation.”

He said the defendant “spent years helping funnel stolen money from hardworking Americans,” including an elderly victim who “was manipulated into believing she was building a genuine relationship.”

“These criminals do not see victims as people—they see them as targets,” Parman said, adding that authorities would continue to “aggressively pursue and prosecute those who exploit trust, devastate families, and profit from fraud.”

Also commenting, Federal Bureau of Investigation Louisville Field Office Special Agent in Charge, Olivia Olson, said Emesim “preyed upon trusting men and women” for more than a decade.

She added that the sentencing shows that law enforcement agencies remain committed to pursuing “criminals who operate financial scams at the expense of innocent Americans.”

During the sentencing hearing, the court described Emesim’s conduct as “heartless and unquestionably reprehensible,” saying the crimes caused severe financial, emotional, and psychological harm to victims.

Under U.S. federal law, Emesim is required to serve 85 per cent of his prison sentence and will remain under supervision for three years after release.

The case was investigated by the FBI, while Assistant U.S. Attorney Kate Dieruf prosecuted the matter on behalf of the United States government.

Continue Reading

News

Nigeria’s inflation rises to 15.69% in April

Published

on

Nigeria’s inflation rate climbs to 26.72%
Spread the love

Nigeria’s headline inflation rate rose to 15.69 per cent in April 2026, up from 15.38 per cent recorded in March, reflecting a 0.31 percentage point increase, according to the National Bureau of Statistics (NBS).

According to the data released on Friday, Consumer Price Index (CPI) stood at 138.3 in April, marking a 2.9-point increase from 135.4 in March. The NBS said the increase followed the agency’s recent rebasing to a 2024 base year with 2023 as the weight reference period.

Despite the uptick in the annual rate, the bureau stated that the pace of price increases slowed, with month-on-month inflation easing to 2.13 per cent in April from 4.18 per cent in March.

The NBS data also shows a sharp moderation when compared with April 2025, when headline inflation was significantly higher at 26.82 per cent.

“The National Bureau of Statistics is pleased to announce the release of the latest Consumer Price Index (CPI) figures for April 2026. Following the completion of the recent rebasing exercise, this report is centred on a new CPI base year of 2024 and a weight reference period of 2023. Hence, the Consumer Price Index (CPI) increased to 138.3 in April 2026, and reflects a 2.9-point increase from the preceding month.

“On a year-on-year basis, the headline inflation rate for April 2026 stood at 15.69%, when compared to 15.38% and 26.82% recorded in March 2026 and April 2025; respectively. The month-on-month headline inflation rate in April 2026 was 2.13%, which was 2.05% lower than the rate recorded in March 2026 (4.18%),” the NBS stated.

Maduka College Advert

At the divisional level, price pressures were driven mainly by Food and non-alcoholic beverages, restaurants and accommodation services, and transport, while recreation, alcohol and tobacco, and insurance recorded minimal impact.

“The three major contributors to the headline inflation were Food and non-alcoholic Beverages: 6.40%, Restaurants & Accommodation Services: 3.56%, and Transport: 1.70%; while the least contributors were Recreation, Sport, and Culture: 0.01%, Alcoholic Beverages, Tobacco, and Narcotics: 0.01%, and Insurance and Financial Services: 0.03%,” the bureau added.

It also said food inflation stood at 16.06 per cent year-on-year in April, lower than 24.68 per cent recorded in the same period last year, while the monthly rate slowed to 3.63 per cent from 4.17 per cent in March, reflecting softer increases across key staples.

The statistics bureau further said core inflation, which excludes volatile agricultural produce and energy, came in at 15.86 per cent year-on-year, with the monthly rate dropping sharply to 1.03 per cent from 4.03 per cent in March.

Across locations, it noted that urban inflation stood at 15.40 per cent year-on-year, while rural inflation was higher at 16.36 per cent, with both segments recording slower monthly increases compared to March.

Continue Reading

Trending

Maduka College Advert