South African grocery retailer Pick n Pay announced plans to exit Nigeria by selling its 51% stake in a joint venture as part of a broader strategy to restructure outside its home market, according to CEO Sean Summers.
The company currently operates two stores in Nigeria, having entered the market less than five years ago through a partnership with A.G. Leventis (Nigeria), as reported by Reuters.
This move adds to a growing trend of international companies withdrawing from Nigeria amid increasing challenges to their operations.
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Many multinationals have reduced their presence in the country, whether by scaling back operations, transferring ownership, or selling their stakes.
A recent example is Diageo’s sale of its 58.02% share in Guinness Nigeria to Tolaram Group on June 11, 2024. Additionally, President Bola Tinubu approved the transfer of ExxonMobil’s shares to Seplat Energy earlier this month.
The exodus of multinationals has significantly impacted the Nigerian economy, resulting in an estimated N94 trillion loss in output over the past five years, according to Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry.
In 2020 alone, over ten companies ceased operations, including Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd.
The trend continued in 2021, with more than twenty companies exiting the market, such as Tower Aluminium Nigeria PLC and Framan Industries Ltd.
In 2022, at least fifteen well-known brands, including Universal Rubber Company Ltd and Mother’s Pride Ventures Ltd, left Nigeria.
In 2023, over ten major firms, including Unilever Nigeria PLC, Procter & Gamble Nigeria, and ShopRite Nigeria, also exited.
In the first half of this year, five listed major companies departed Nigeria, including Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC.
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