Nigerian Lawmakers To Investigate Exit Of Multinationals From Country

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nigerian lawmakers to investigate exit of multinationals from country

Nigerian lawmakers have resolved to investigate the departure of some multinational companies from the country amid a volatile macroeconomic environment.

The resolution was reached by the House of Representatives following the adoption of a motion moved by Patrick Umoh (APC, Akwa Ibom) and two other legislators during Tuesday's plenary session.

The co-sponsors are Lukman Mudashiru and Paul Ekpo.

Foreign companies, especially manufacturers and energy firms, have been leaving Nigeria with many citing the current foreign exchange crunch and devaluation of the naira, resulting in lower earnings for foreign companies in dollar terms, as reasons.

Moving the motion on the need for intervention to halt the exit, Mr. Umoh listed about a dozen companies that have left the country or ceased production due to the harsh economic environment.

Some of the companies listed by the lawmaker include Surest Foam Limited, Mufex, Framan Industries, MZM Continental, Nipol Industries, Moak Industries, Stone Industries, Procter and Gamble , Sanofi-Aventis, and Equinor.

He added that Bolt Food discontinued food delivery due to economic challenges, while Jubilee Syringe Manufacturing also declared temporary redundancy due to unforeseen business challenges.

Mr Umoh said the mass exit of companies hinders economic growth potential, leads to job losses, increased poverty, decreased government revenue, and diminished investor confidence in the Nigerian market.

"Multinational companies are exiting or closing operations in Nigeria due to economic uncertainties, challenging business environments, lack of electricity, constant naira devaluation, high taxes, insecurity, poor infrastructure, port congestion, and stringent government policies," he said.