Why GHK Left Nigeria.

I saw a post where Reno Omokiri was accusing an entire tribe of importing fake drugs into the country and thus end up pushing GHK ouf of Nigeria. One with a rational mind, that is not biased, as most Nigerians are, which in my opinion is nothing but ignorance laced with tribal hate, will do a simple Google search to find out the reason behind GSK exist from Nigeria.
Bellow are the reasons as culled from various news sources:

From their linkden page:

The recent announcement by GlaxoSmithKline (GSK) UK Group to wind down operations in Nigeria due to the country's forex crisis has sent shockwaves through the pharma space. As we delve into the implications of this decision, Lekan Adekoya Director of Retail, Operations Sales and Customer Success at OneHealth at OneHealth, explores the potential impact on consumers, pharmacies, HMOs, healthcare services, pharma investors, and employers offering health benefits. 
This article aims to shed more light on GSK's popular products whose prices would be affected by the change, provide alternatives that are available to the public, and draft out effective strategies that can be used to overcome the implications for various stakeholders.

Earlier this week,  GlaxoSmithKline (GSK) announced that it would cease its operations in Nigeria, according to a recent report by Business Day, GSK officially announced its intent to cease operations in Nigeria but will treat its employees fairly and will meet all applicable legal and consultation requirements and would provide shareholders with a cash distribution.
The company also stated that its shareholders will also be provided with a draft Scheme of Arrangement, which may see them receive an accelerated cash distribution and return of capital.

GSK Nigeria said that it has been working with its professional advisors to agree on the next steps, and will be submitting the Scheme of Arrangement to the Securities and Exchange Commission (SEC) shortly. The company announced its plans to engage a local third-party distributor in Nigeria for the distribution of its products.
"We are grateful for the support of the GSK Group in this endeavour, and we aim to share comprehensive details in the near future," the company said.
This decision by GSK was due to the forex crisis in Nigeria, which has made it difficult for GSK to import its products into the country.
The organization is a British multinational pharmaceutical company that has been operating in Nigeria for over 50 years. Its products are used by millions of people in Nigeria, and its decision to cease operation is a major blow to not only the country's healthcare system but to the Nigerian economy as a whole because as of 2020, GSK's total economic contribution to Nigeria was estimated to be $1.2 billion. 


With Nigeria being an import-dependent country the current forex crisis has had a huge effect on a lot of businesses, and they have found it difficult to import goods and services, which is a result of the naira constantly depreciating against the US dollar, making it more expensive for businesses to buy foreign currency.
GlaxoSmithKline (GSK)  imports most of its products into Nigeria, and the forex crisis has made it difficult for the company to obtain the foreign currency it needs to import its products. This led to the decision for GSK to cease its operations in Nigeria, this decision has raised concerns among the company's stakeholders, such as shareholders and consumers.
Shareholders are concerned about the impact of the decision on GSK's profits. As the company's revenue from Nigeria is significant, this decision could lead to a decline in profits, while consumers are concerned about the availability of GSK's products in the country as the company's products are used by millions of people in Nigeria, and its decision to leave the market could have a significant impact on the availability of these products.
Read more on https://www./gsks-exit-from-nigeria







Culled from Reuters
ABUJA, Aug 3 (Reuters) - GlaxoSmithKline (GSK) Nigeria (GLAXOSM.LG) said on Thursday it plans to stop doing business after evaluating the options for moving to a third-party distribution model for its drugs and consumer healthcare goods.
GSK Nigeria, which has faced increased competition from local companies and imports from India and China, said its half-year sales had dropped to 7.75 billion naira ($9.82 million), from 14.8 billion naira in the same period a year ago.

Its British parent company GSK (GSK.L), which has been in Nigeria since 1971, said in 2018 that it would cut back its operations in Africa and adopt a distributor-led model instead of marketing medicines in 29 sub-Saharan African markets.
GSK Nigeria said it is working with advisers to agree next steps and plans to submit a scheme of arrangement to Nigeria's Securities and Exchange Commission, which if approved will see it return cash to shareholders except its parent GSK.

It also said the Haleon Group (HLN.L) has informed it of plans to terminate a distribution agreement and to appoint a third-party distributor in Nigeria, which faces a cost of living crisis, rising business costs and a shrinking consumer base.
"For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations," GSK Nigeria said in a statement.
Shares in GSK Nigeria, in which British drugmaker GSK has a 46.4% stake and Nigerian shareholders the remaining 53.6%, closed at 8.10 naira, down from a peak of 42.24 naira in 2014.
Inflation in Africa's largest economy, which has been in double digits since 2016, reached 22.79% in June and is set to rise further after new President Bola Tinubu scrapped a popular but costly subsidy on petrol and devalued the currency.
Tinubu hopes the reforms will kick-start growth and attract foreign investors which will help boost inflows into a country that has suffered chronic dollar shortages, making it difficult for companies to import raw materials.

Source:
https://www.reuters.com/business/healthcare-pharmaceuticals/gsk-nigeria-calls-an-end-its-business-return-cash-2023-08-03/



From Guardian

The Managing Director, Merit Healthcare Limited and a fellow of the Pharmaceutical Society of Nigeria (PSN), Dr. Lolu Ojo, has explained why pharmaceutical firm, GlaxoSmithKline (GSK), ceased operations in Nigeria.
The parent body, GSK UK Group, had informed GlaxoSmithKline Consumer Nigeria Plc of its strategic intent to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.


Ojo, who is also a past chairman, Association of Industrial Pharmacists of Nigeria (NAIP) and the Nigerian Academy of Pharmacy (NAP) committee on drug and substance abuse, said before this announcement, GSK products had been very scarce in the market and the few available were very expensive, sometimes sold at six to seven times the normal prices.
He said there were a number of factors that eventually led to GSK’s exit, such as the Nigerian environment, which is hostile to businesses, whether international or indigenous. “Everything is stacked against genuine businesses, and only those who can cut corners are moving on, possibly cheating on the system,” Ojo said.
He said: “It has been extremely difficult to repatriate their (GSK’s) fund or pay for supplies due to scarcity of and fluctuations in foreign exchange. Immediately following are the huge losses attributable to foreign exchange movements.
“The floatation of the naira recently could mean that $10 million (in naira equivalent) waiting to be transferred since January may only amount to $6 million if transferred now.
“Unfortunately, GSK, by its own standard and avowed commitment to ethical ways of doing things, cannot do things the ‘Nigerian way’. There’s also the burden of being part of a Nigerian Public Limited Company with boundaries on what they can do normally.
“They had already exited East Africa, particularly, Kenya, which is their biggest market in that region. They will probably find a way to come back with a third party involvement.
“The market in Nigeria deals with established brands, which is not in alignment with the global strategy. The global focus now is on new molecules which are more profitable.”
Ojo said there’s no need to lament GSK’s exit. Rather, Nigerians should gird their loins and make the country a truly great destination for international and ethical business.
He recalled that this is not the first time big businesses would leave Nigeria. “Let’s remember the exit of Dunlop, Michelin, P & G and a host of others. It’s wake up time. Let the new government do something, positively and quickly too,” he added.


https://guardian.ng/news/why-glaxosmithkline-stopped-operations-in-nigeria-by-ojo/


You can run a research by yourself and get correct information. Dont allow some people who are determined to make Igbos a scapegoat in a failed economy to deceive you. It will never improve your life nor make you better.
If Reno Omokiri is sure of his accusation, then he should call out names and submit to the government so the appropriate action will be taken.

Reno Omokiri, if you are sure of your position, please call out names. List them out so Tinubu government will take action. If not, you are just playing on the sentiments of Nigerians on a serious issue that could lead to break down of laws and order.

I wonder when Igbo leaders will take action on Reno Omokiri over his numerous diatribe against the Igbo people.
Nigerian health sector is in shamble already, and no Igboman is the minister of health. If truly he is sure of those importing fake drugs to the country, the right thing to do is list out their names and let the authority take action.
What Reno is doing is more a like a prelude to a genocide, judging from the intense hate Igbos have faced recently in the country, especially in the South West.