International investors withdraw N310 billion in assets as P&G and Equinor exit Nigeria
With an increasing number of multinational companies withdrawing from ground operations in Nigeria, the country's economy is anticipated to suffer a loss of $335 million (approximately N310 billion) in Foreign Direct Investments (FDI).
This figure symbolizes the aggregated value of assets corresponding to the recent exits disclosed by Procter & Gamble (P&G), a significant global participant in the Fast-Moving Consumer Goods (FMCG) sector, and Equinor, another global player in the upstream oil sector.
Procter & Gamble (P&G), an American multinational consumer goods company, has announced its intention to shift from local production to importing its products entirely, as the company concludes its physical presence in Nigeria.
Equinor is exiting the Nigerian market after selling its business, including its stake in the Agbami oil field, to Chappal Energies, a Nigerian-owned energy company.
Explaining the decision, Andre Schulten, Chief Financial Officer of P&G, cited the "challenging business environment in Nigeria" and difficulties in creating US dollar value.
Equinor’s Senior Vice President for Africa Operations, Nina Koch, stated, “Nigeria has been an important part of Equinor’s international portfolio over the past 30 years. This transaction realizes value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas.”
In the latter half of this year, two other major multinational companies, GlaxoSmithKline (GSK) Consumer Nigeria Plc and Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, withdrew assets valued at over $800 million from Nigeria, citing a challenging operating environment.
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