Bola Ahmed Tinubu, the President of Nigeria, has implored multinational corporations not to close down their operations in the country, emphasizing his administration’s commitment to eliminating any obstacles hindering their business activities. He gave assurances that his administration is devoted to resolving all investment-related concerns efficiently. We possess an unwavering determination to eradicate any obstacle hindering our relentless pursuit to transform Nigeria into the prime destination for substantial investments across various vital sectors, he said.
During a meeting held at the State House in Abuja, the President expressed the importance of mutual reliance to a visiting delegation of Shell management led by Ms. Zoe Yujnovich, the Global Integrated Gas and Upstream Director. Tinubu made this statement following the departure of numerous multinational corporations from the country in recent months. In the last 10 months, it has been observed that multiple corporations, not less than five, have made distinct notices indicating the closure of their operations in Nigeria.
Bolt Food ceased its food delivery services in Nigeria.
Earlier in march, Unilever made a decision to withdraw from the domains of home care and skin cleansing, as it altered its business model. Unilever justified these departures by pointing to factors like the newly introduced forex policy by the CBN, the depreciation of the Naira, and the prevailing economic crisis. Also in August, GlaxoSmithKline (GSK) Consumer Nigeria Plc, the nation’s second largest pharmaceutical manufacturer, stopped operations in the country. The company had earlier said it encountered difficulties in sustaining the availability of its medical products in Nigeria owing to a lack of dollars for importing essential ingredients.
In a similar vein, Sanofi, French pharmaceutical multinational, has communicated its partial exit from its Nigerian venture. Sanofi expressed that, commencing February 2024, it has engaged a third-party distributor to oversee its range of medicine products. Also, Bolt Food, in a released statement, confirmed its resolution to cease its food delivery services in Nigeria due to business-related factors. The prevailing issues of a shortage in foreign currency, economic crisis, frequent power outages, burdensome tax obligations, widespread insecurity, and inadequate infrastructure have forced many companies out of the country, hampering the Nigeria business landscape.
Nigeria is on global quest for new investments.
On the other hand, Tinubu remains optimistic about the possibility of Shell Petroleum Development Company of Nigeria increasing their investments, as stated in a statement signed by Ajuri Ngelale, the President’s Media and Publicity Special Adviser. Highlighting the historical relations between Shell and Nigeria, the President expressed firm dedication to safeguarding and nurturing present as well as future investments. Adding to his statement, the President acknowledged advancements made since the previous encounter and confirmed ongoing support and motivation towards their shared objectives.
He continued highlighting his strive in leading Nigeria global quest for new investments considering the significant emphasis on investment on the continent. Given our enduring bond formed over the years, it is without doubt that we seek your extended involvement. We are more than willing to provide support and encouragement in any manner feasible, he said. Representing the Shell Group, Zoe Yujnovich, confirmed that the company remains dedicated to upholding its long-standing commitment to investing in Nigeria.
$1bn investment committed to Nigeria local gas value chain.
Yujnovich said the commitment towards deepwater and gas sector prospects is a key aspect, with a promised investment of $1 billion over the coming ten years to amplify the local gas value chain and boost the Nigeria Liquefied Natural Gas initiative. She said Shell’s strong dedication to the nation’s energy sector is exemplified by the declaration of an imminent investment worth $5 billion in the Bonga North project situated off Nigeria’s coastline. Yujnovich showed enthusiasm toward moving forward with this momentous endeavor and noted numerous potential investments her company is contemplating in Nigeria.
Related Link
Wikipedia: Website
