Again, another multinational company Johnson & Johnson sets pack away from Nigeria over harsh economic environment

 





**List of multinationals that have left the shores of Nigeria

By allcitynews.blog

Again, another multinational company, Johnson and Johnson Pharmaceutical Company has announced its readiness to  pack away from Nigeria over unfriendly economic situation, swelling the numbers of multinationals that have left  the country about 27 within four years.

Accordingl, in a move that underscores the deepening struggles of multinational companies in Africa’s largest economy, a  global healthcare giant, Johnson & Johnson Innovative Medicines (J&J) is preparing to shut down its operations in Nigeria.

The planned exit, according to reliable source, disclosed to the Commerce and Industry Correspondents Association of Nigeria (CICAN) was due to Nigeria’s worsening economic climate occasioned by soaring inflation, foreign exchange scarcity, rising production costs, and unpredictable government policies.

According to the source, who chose to remain anonymous, Johnson & Johnson Innovative Medicines has supplied vital pharmaceutical and medical products to the Nigerian market, but the deteriorating business environment has now made operations unsustainable.

"Over the past one year, they had reduced their staff strength to about 20% shrinking significantly. In 2022, the Consumer Healthcare arm of the company had also quietly left the country.

“This is not just about one company leaving. When a healthcare leader like Johnson & Johnson cannot survive in Nigeria, it sends a worrying signal to other global investors.”

Johnson and Johnson Innovative Medicines departure is expected to leave a significant gap in the healthcare supply chain, potentially limiting Nigerians’ access to essential medicines in the Oncology, Immunology and Mental Health spaces.

In recent years, Nigeria has witnessed an increasing trend of multinational and local companies shutting down or relocating their operations due to economic challenges, currency volatility and rising operational costs.

The latest company to announce its departure from Nigeria is Johnson & Johnson, a large multinational corporation with more than 275 subsidiaries, and operations in more than 60 countries. The company is a producer of medical devices and pharmaceuticals, and the owner of many well- known consumer brands.

They all are blaming economic challenges, naira instability and regulatory hurdles, multiple taxation, unstable electricity, inability to sell their products due to the dearth of customers purchasing power, among other things as  their reasons for their shutting down.


According to Punch Newspaper, "an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, Vincent Nwani, over 10 companies shut down operations in 2020 alone and more than 20 companies exited the country.

Below is a year-by-year breakdown of companies that exited the Nigerian market from 2020 to mid-2024:

2020:
In 2020, more than ten companies exited the Nigerian market, as the impact of economic instability and other operational challenges became evident. Notable closures included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd

2021:
The departure of companies escalated in 2021, with over 20 firms shutting down operations in Nigeria. Among those who left were:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd

2022:
In 2022, more than 15 prominent brands ceasing operations in the country, including:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd

2023:
The wave of exits continued in 2023, as over ten major companies pulled out from Nigeria, citing profitability concerns and challenging business conditions. Notable departures included:

– Procter & Gamble Nigeria
– GlaxoSmithKline Consumer Nigeria Ltd
– ShopRite Nigeria
– Sanofi-Aventis Nigeria Ltd
– Equinox Nigeria
– Bolt Food & Jumia Food Nigeria

2024 (January – October):
In the first six months of 2024, at least five significant companies exited, as the business climate remained difficult. These included:
– Microsoft Nigeria
– Total Energies Nigeria (impacted by divestment strategies)
– PZ Cussons Nigeria PLC
– Kimberly-Clark Nigeria
– Diageo PLC

Now Johnson & Johnson sets to join the league of those companies.




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