Pres. Bola Tinubu
GlaxoSmithKline: LCCI, NACCIMA urge FG to ‘address inclement business environment in Nigeria’
Worried over the mass exodus of multinational companies from the country, the Organised Private Sector (OPS) has urged the Federal Government to speedily address the inclement business environment to prevent more businesses from folding up.
This is also it said the recent exit of pharmaceutical firm, GlaxoSmithKline from the country ‘reflects Nigeria’s poor ranking on ease of doing business.’
In separate reactions to the recent exit of GlaxoSmithKline, the Lagos Chamber of Commerce and Industry (LCCI) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) said the decision by pharmaceutical company to shut its operations in the country after over five decades ‘would have adverse effects on the economy.’
The bodies noted that despite offering international businesses access to the largest market on the continent, the country still faced economic slowdowns due to rising costs of doing business, an unreliable power supply, and weak infrastructure.
“With justification, the chamber is concerned that if the trend persists, the nation’s economic growth potential will not be realised. GlaxoSmithKline’s decision critically reflects on the nation’s poor ranking on ease of business measures, which the chamber has constantly spoken about. It is time the government took appropriate action to reverse the saddening trends in the business clime in Africa’s largest market.
“Factor cost, as an integral element of the profit equation, is viewed with utmost seriousness by business people. In the face of rising costs, business people will likely search for cost-friendlier locations.
“The chamber is inclined to suggest the government take a holistic view/review of the business environment and take steps to make the nation’s business clime more competitive for growth,” LCCI said.
On its part, also reacting via a statement signed by its President, NACCIMA expressed deep concern over the exodus of companies from Nigeria.
It said the recent announcement of GlaxoSmithKline’s exit from Nigeria had dealt a major blow to the country’s manufacturing sector, which was already experiencing significant collapse among its local businesses.
According to NACCIMA, the sudden rise in the price of petrol and the abolition of the official naira rate has caused a significant backlash.
It claimed that that had eroded the already earned income and trading capital of several multinational companies that had established their previous earnings based on the official naira rate at the time.
That, it said, had led to a steady exodus of multinational companies and the collapse of several local companies, resulting in significant job losses and economic damage.
“NACCIMA urges the government to urgently review the short-term impact of its economic policies as it relates to commitments already concluded for remittances/raw materials by the affected companies/businesses to reverse the trend of companies leaving Nigeria.
“We call on the government to focus on creating a conducive environment for businesses to thrive and provide access to single-digit short and long-term financing to reduce the cost of doing business. The government should prioritise investments in infrastructure and power supply, provide tax incentives to encourage businesses to invest in Nigeria, and improve the ease of doing business by reducing bureaucratic bottlenecks,” the NACCIMA statement read.
According to NACCIMA, it is crucial for the government to take urgent action to reverse the trend of companies leaving Nigeria and restore confidence in all sectors of the economy.
“NACCIMA maintains that sustainable development can only be achieved through collaboration between the private and public sectors, and we are committed to working with the government to ensure Nigeria’s economic success,” it stressed.
