The harsh economic environment continues to hurt foreign investors who are leaving Nigeria for more conducive climes. The departure of one of the world’s largest conglomerates Britain’s GlaxoSmithKline goes beyond their products becoming less visible in pharmacies and hospital shelves. For a company that built its first office in Lagos to commence operations in 1972, quitting at this time the government is harping on Foreign Direct Investment (FDI) will send wrong signals to potential investors who may need a lot of convincing to enter a market that has been abandoned by a top player, after 51 years. The exit door is ajar. Procter and Gamble (P&G), the well-known American multinational consumer goods corporation, is out, following the footsteps of Deli Foods, Nipol Industries, Surest Foam, MZM Continental and a host of others.

Since we operate an unpredictable economy, there is little to suggest that things will get better soonest. The country was littered with textile companies in the past. Presently, out of the former count of 175 running industries, just 20 are still breathing, although some are on life support, eagerly awaiting a turn around that will boost production. With businesses folding up, there will be massive unemployment. Already, the rate is 35 per cent. As the labour market continues to expand, homes will be affected as many workers will be unable to fend for their families. Some may not even survive the emotional torture. Unemployment breeds insecurity. The Federal Government must be more proactive.

Hiking the security budget is not the best solution to the scourge of Boko Haram, bandits and kidnappers. Keeping and creating job opportunities is a far better option and will go a long way in stemming insurgency. There is no blaming a company like GlaxoSmithKline which witnessed a sharp dip in sales. In the first half of 2023, sales dropped to N7.75 billion from the N14.8 billion that came as profit in the first half of the previous year. It is the duty of the government to create an enabling situation for conglomerates to thrive. The removal of subsidy on petroleum products that led to the hike of pump price of Premium Motor Spirit (PMS) from N184 to N617 per litre, has left many Nigerians having to juggle their meagre salaries on more pressing needs like feeding and health rather than on other items not considered “essential”.

Besides, the astronomical increase in the price of diesel due to the crash of the exchange rate, has left many industries gasping for air. While manufacturers were still grappling with that, the Foreign Exchange crisis began. The new monetary policy has made it nearly impossible for many manufacturers to source for dollars to remain relevant in the very large Nigerian market which prides itself as a leading African economy. The last few years have been hectic for the conglomerates. Earlier in the year, Unilever stopped the production of some of its household brands like Omo detergent, Sunlight cleaning soap and the always available Lux bath soap. This is a company that has been around in Nigeria since 1920. Small and Medium Enterprises are going under in quick succession. If the exit of Procter and Gamble cost 5, 000 workers their means of livelihood, more would have become unemployed in the informal sector.

At this stage, it is difficult to fathom what transpires when the various state governors travel to Abuja for meetings with President Bola Tinubu. If they are not worried about the situation, they may not be worried about even their own jobs. Kaduna was bubbling with textile industries during the years of boom. Perhaps, if there were readily available jobs through this, bandits would not be living in Igabi and Birnin Gwari Local Government Areas of the state. And the Nigeria Army would not have acquired drones to target Tudun Biru. Tinubu and his economic team should take a trip to Agbara Industrial Estate. Located in Ogun State, it is accessible through the Lagos-Seme International Highway.

They should find out the state of the roads during the Muhammadu Buhari Presidency. Some of the companies domiciled in Agbara suffered monumental losses because of the terrible road that they volunteered to fix. Bureaucracy did not permit such. The ease of doing business in Nigeria is a red mark. That is part of the GlaxoSmithKline story. Agbara is no longer a sprawling industrial estate with the best of facilities for workers. It now wears the look of a Memorial Park where dreams of virile Nigerian workers are buried. The ghost of unemployment has taken control of that area. It is sickening that government policies encourage import only movement in an economy that needs diversification, with particular attention to export. The president must not wait until investments are crushed by divestment.

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