Nigerian Lawmakers Launch Probe into Mass Exit of Foreign Companies

The House of Representatives has resolved to establish a special committee to investigate the mass exit of multinational companies from Nigeria.

The committee will probe the reasons behind the exit of these companies and recommend measures to halt the trend.

The resolution was sequel to a motion moved by Babajimi Benson (APC, Lagos) on the exit of Kimberly-Clark, an American multinational consumer goods and personal care corporation, less than three years after it invested $100 million in setting up in Nigeria.

Benson expressed worries over the trend of companies leaving the country due to a hostile working environment, high cost of power, and high cost of raw materials.

He noted that the exit of Kimberly-Clark will lead to massive job losses, affect the Nigerian economy, and cause difficulty in getting safe and healthy sanitary products at affordable prices in Nigeria.

The legislator proposed that the management of Kimberly-Clark should rescind its decision to close down its business and exit the Nigerian business environment pending intervention by the House.

He also prayed the House to mandate the Committee on Commerce to urgently meet with the management of Kimberly-Clark and relevant government MDAs to discuss their challenges and reasons for exiting Nigeria to proffer lasting solutions to these challenges.

Speaking on the motion, Isiaka Ibrahim (APC, Ogun) said multinational companies are exiting all sectors of the economy, including the oil and gas sector.

He stated that the motion should not be restricted to only Kimberly-Clark but all multinationals that are about to leave the country.

Consequently, he moved an amendment to the motion that a special committee be constituted to conduct a holistic investigation into the exit of multinational companies from the country.

The motion was adopted as amended when it was put to vote by the presiding officer, Deputy Speaker Ben Kalu.

The development is coming at a time when many foreign companies are exiting Nigeria due to various challenges, including the current foreign exchange crunch and devaluation of the naira, which means lower earnings for foreign companies in dollar terms.

Some of the companies that have exited Nigeria in recent times include Procter & Gamble (P&G), Unilever, and GlaxoSmithKline, among others.

The exit of these companies has raised concerns over the impact on the Nigerian economy and the livelihoods of Nigerians who depend on them for employment and other benefits.

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