Nigeria’s large and growing population is impossible for business to ignore and a recent exodus from the West African state won’t last, South African billionaire Christo Wiese said in an interview on Bloomberg TV.

“How do you ignore an economy like this?” said the former chairman of Shoprite Holdings Ltd., the continent’s largest grocer which left Nigeria in 2021.

“Sooner or later the big players will enter again,” the billionaire declared.

In December Procter & Gamble Co. also ditched Nigeria, with at least three other global conglomerates in recent months announcing they are exiting Africa’s most populous nation, and second-biggest economy.

Many African countries, like Nigeria, developed as single-commodity economies which has meant that when the price of that product falls, the currency and consumer spending take a hit, making it difficult for foreign investors to get a return.

“Most foreign investors, including South African investors, I think have adopted an attitude when it comes to Nigeria that it’s too early,” Wiese said. “We’ve got to wait for things to settle, for the economy to develop more and then for governments that adopt the correct policies.”

The entry of several global firms into Nigeria was heralded with fanfare.
For example as Nigeria’s vice president cut the ribbon on Procter & Gamble Co.’s diaper production line in 2017, the $300 million facility near Lagos was hailed as a symbol of the country’s economic ambitions. In December, P&G said it was leaving the West African state.

The US consumer goods giant is not alone. In recent months at least three other global conglomerates have announced they are exiting Africa’s most populous nation, and second biggest economy. Among them GSK Plc, Bayer AG and Sanofi SA. Last year Unilever Plc cut some of the products it was manufacturing in the country. Nestle SA has posted losses from its operations.

At the heart of the exodus is a scarcity of the dollars international businesses need to repatriate earnings. The central bank has devalued the naira twice in the past eight months and is still struggling to clear a backlog of demand for greenbacks companies require to pay debts and import raw materials. A near complete absence of a reliable electricity supply and congestion at Nigeria’s ports are compounding the malaise.

“It’s news because it’s P&G. It’s news because it’s GSK. It’s news because they have been in the country for a long time — but there are others that have died quietly,” Segun Ajayi-Kadir, director general of The Manufacturers Association of Nigeria advocacy group said on local television after the P&G announcement. “If the current situation doesn’t improve, certainly we’ll have more closures.”

Some of the world’s largest oil reserves, ample fertile land and a rapidly growing population should have created a lucrative market for consumer goods producers following the restoration of democracy in 1999. Instead policy missteps, corruption and an over-reliance on oil fueled dysfunction in the economy. The middle class didn’t expand as much as expected.

The implications for Nigeria are hard to ignore. Its oil-dependent, $394 billion economy is already hobbled by high levels of imports. The corporate exits — $187 million in investment left the country in 2022 compared with an inflow of almost $9 billion in 2011 — will only exacerbate pressure on the naira, which has depreciated 86% over the last eight years, and deal a further blow to long-standing diversification efforts.

SOURCE: https://businessday.ng/news/article/business-exodus-from-nigeria-wont-last-south-african-billionaire-wiese-says/

Fergie001
Mynd44

Let me reiterate this here. If your plan is to be wealthy in life, like very wealthy, then you have nothing to do with japa. There's nowhere in the world to accumulate wealth like Nigeria because we're an emerging economy with an enormous population. All you have to do is to be able to use your brain, think of something useful to create, be serious and diligent, and watch how you amass wealth.
Think about it, almost everything a society can need has been created in the developed nations, in every sector, so how can anyone think they can penetrate such an economy and make plenty of money? No way.
I understand the fact that things aren't as they should be currently, we have so many unfortunate people managing the affairs of the country. But trust me, it's not going to be like this forever, the big players know this, you should too.

The hioe for this country is bleak... But, Nigerians will survive!

I commend the MSMEs for being able to hold on despite multiple taxations, no power, and high interest rates from banks.

The ease of doing business in Nigeria is worrisome.

Nigeria..a geographical business conglomerate designed to be raped in dollars and Naira for a few highly connected to the corridors of power

Allah Akbar

I pray for Asiwaju Bola Tinubu everyday.
Nigeria must begin to move away from oil and gas, that's the only solution to the problem of Nigeria.
Asiwaju must be bold in dismantling the stranglehold of those who don't want Nigeria to develop.
Like it was stated in the article, Nigeria has become a mono economy with Oil and gas accounting for more than 60% of our Dollar Revenue.
There's a bigger revenue earner for Nigeria if only Government can try to harness its potential.
It's time for Government to allow states develop their natural resources,at least let only oil and gas be the only natural resource on the exclusive list,all other minerals should be moved to the concurrent list.
Also oil and gas should be removed gradually and handed over to the States.
I really pray Asiwaju uses his power to enforce these laws that will decentralize the finances of states in Nigeria..
God bless Nigeria......

COMRADES, tinubu has either bribed this man for this article or the man is looking for ways to establish his businesses in Nigeria

Melagros:
COMRADES, tinubu has either bribed this man for this article or the man is looking for ways to establish his businesses in Nigeria

That u reason this way shows how myopic u are

U actually believe its impossible for analysts or even random people to see things from a diff lens?

Its even funny that u couldnt rule out any of this points with a very sound claim

i give up Obidients... This isnt a group for the intellectuals

Faiththatworks:
I pray for Asiwaju Bola Tinubu everyday.
Nigeria must begin to move away from oil and gas, that's the only solution to the problem of Nigeria.
Asiwaju must be bold in dismantling the stranglehold of those who don't want Nigeria to develop.
Like it was stated in the article, Nigeria has become a mono economy with Oil and gas accounting for more than 60% of our Dollar Revenue.
There's a bigger revenue earner for Nigeria if only Government can try to harness its potential.
It's time for Government to allow states develop their natural resources,at least let only oil and gas be the only natural resource on the exclusive list,all other minerals should be moved to the concurrent list.
Also oil and gas should be removed gradually and handed over to the States.
I really pray Asiwaju uses his power to enforce these laws that will decentralize the finances of states in Nigeria..
God bless Nigeria......

A man who broke into a house through the window can't be expected to clean the house.