APC Chieftain Sounds Warning Bell: Multinational Exits Could Lead to Economic Downturn

A prominent member of the All Progressives Congress (APC), Olatunbosun Oyintiloye, has expressed concern over the recent departure of multinational corporations from Nigeria. Oyintiloye urged President Bola Tinubu to continue making concerted efforts to enhance the economy and attract more investments to the nation, rather than witnessing the departure of those already established within its borders.
The APC leader conveyed his sentiments during a press briefing in Osogbo yesterday. Oyintiloye, a former legislator, warned that the continuous exodus of multinational corporations from Nigeria, if left unchecked, could result in decreased foreign investment inflows, substantial job losses, and diminished economic output, among other consequences.

The APC official highlighted the unsettling news of Kimberly-Clark, a multinational corporation renowned for its Huggies brand, deciding to exit the country. He further mentioned that GlaxoSmithKline Consumer Nigeria Plc, French pharmaceutical giant Sanofi-Aventis Nigeria Limited, and Procter and Gamble have either fully or partially ceased operations in Nigeria. Additionally, in 2023, Unilever ceased the production of its renowned OMO, Sunlight, and Lux brands in a cost-cutting move to focus on more lucrative growth opportunities.
Oyintiloye emphasized that the departure of these multinational corporations not only impacts the manufacturing sector but also affects the oil industry. He revealed that approximately 26 oil companies and investments have divested and transferred their interests to local investors. Among the notable oil mining multinationals that have exited are Shell, ExxonMobil, and ENI, largely due to heightened security concerns in the Niger Delta and the government’s failure to provide the required funds for joint venture agreements to explore new oilfields.

Oyintiloye, a former member of the erstwhile APC Presidential Campaign Council (PCC), cautioned that the departure of these corporations would lead to job losses, disrupt the value chain, and hinder the growth of Nigeria’s Gross Domestic Product (GDP). While acknowledging the president’s efforts to stabilize the economy, Oyintiloye stressed the urgent need for the government to address the business environment challenges cited by departing companies. He urged the President to reinstate Nigeria as an attractive destination for multinational corporations and support local manufacturing industries.
Despite acknowledging the government’s initiatives to revive the economy, attract foreign direct investments, and enhance local industries’ competitiveness, Oyintiloye emphasized the necessity of addressing the factors leading to multinational corporations’ exits. He recommended the implementation of a more flexible and transparent foreign exchange policy to mitigate scarcity issues, combat the inflationary trend impacting consumer demand and purchasing power, provide tax incentives, and review economic and fiscal policies.
Furthermore, Oyintiloye proposed incentivizing the remaining multinational corporations operating in Nigeria to foster a conducive business environment. However, Oyintiloye expressed optimism that with the president’s economic revitalization policies, Nigerians would soon experience positive outcomes.