AN X user, @Irunnia_ has listed eight companies that have allegedly left Nigeria since Bola Ahmed Tinubu became Nigeria’s president in May 2023.
Nigeria has been facing the woes of multinational operations in Nigeria, where foreign companies especially manufacturers and energy firms have been exiting in droves since President Tinubu became the president on May 29.
Most of them cited the current foreign exchange crunch and devaluation of the naira, which means lower earnings for foreign companies in dollar terms, insecurity and lower revenue as their reasons for leaving.
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The X user posted, “Since Tinubu became president, these companies have all left Nigeria due to “bad business conditions” in 1 year! PZ Cussons, GSK, Proctor&Gamble, Sanofi, Equinor, Binance, and Microsoft just left, Bolt is packing If you voted in this govt, you will die young & you will not die well.(sic)”
The post has generated over 3000 reposts and more than 8000 likes as of May 18, 2024.
CLAIM
PZ Cussons, GSK, Procter&Gamble, Sanofi, Equinor, Binance, Microsoft and Bolt have left Nigeria.
THE FINDINGS
Findings by The FactCheckHub show the claim is HALF-TRUE. We reviewed the information online and below are our findings:
1. PZ Cussons
Media reports indicated that PZ Cussons Nigeria PLC, a consumer goods company in the business of personal care, home care and electrical products, which has been in Nigeria since 1899, is planning to leave the country.
Premium Times reported that the local unit of British healthcare products and consumer goods giant, PZ Cussons Plc, slipped into a negative net asset position after a free fall in the value of the naira eroded earnings and wiped out its shareholders’ fund in its entirety.
Negative net asset is a financial condition whereby a company’s total liabilities exceed its total assets.
PZ Cussons Nigeria is the maker of notable brands including Devon King’s Vegetable Oil, Mamador, Morning Fresh, Premier Cool, Joy soap and Robb, among others.
Apart from media reports indicating that the company is considering its exit due to business operation-related difficulties in Nigeria and poor sales performance, there has not been an official statement or credible media report regarding the purported exit of the company.
THE VERDICT
The claim that PZ Cussons has left Nigeria is FALSE; the company has not announced its exit despite indications.
2. GSK
GlaxoSmithKline (GSK) announced plans to discontinue direct operations in Nigeria in August 2023, The Cable reported.
This ended its 51-year presence in the country, known for household brands like Panadol and Sensodyne. While the company didn’t explicitly state reasons, experts have attributed their exit to foreign exchange scarcity and increased competition.
GSK opted for a distributor-led model instead of complete withdrawal, meaning their products might still be available in Nigeria, but supplied through a third party.
THE VERDICT
The claim that GSK has left Nigeria is TRUE; the company exited the country in August 2023.
3. Procter & Gamble
In December 2023, Procter & Gamble (P&G), a US consumer goods company, announced that it would discontinue manufacturing in Nigeria and pivot to import-only activity.
This was disclosed at the Morgan Stanley Global Consumer & Retail Conference in New York by Chief Financial Officer, Andre Schulten.
“We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” Schulten said.
He noted that another reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S. dollar value. “So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.”
THE VERDICT
The claim that Procter and Gamble has left the country is TRUE; the company announced its exit in 2023.
4. Sanofi
Sanofi, a French multinational pharmaceutical company, announced its exit from Nigeria in November 2023, the Business Day reported.
The company said it had appointed a third-party distributor to handle its commercial portfolio of medicines from February 2024.
“This strategic move is driven by our commitment to improve access to our medicines continually and better to serve our patients and the Nigerian health system,” Folake Odediran, Sanofi’s general manager (general medicines) and country lead, said.
THE VERDICT
The claim that Sanofi has left Nigeria is TRUE; findings revealed that the company announced its exit in 2023.
5. Equinor
Findings showed that Norwegian oil firm, Equinor announced the sale of its Nigerian business, including its share in the Agbami oil field, to Nigerian-owned Chappal Energies.
The transaction ended its three-decade presence in Nigeria.
THE VERDICT
The claim that Equinor has left the country is TRUE; the company exited Nigeria in November 2023.
6. Binance
Premium Times reported in March 2024 that the crypto exchange platform, Binance, disclosed plans to discontinue all Nigerian Naira (NGN) services on its platform.
This is after the Nigerian government accused the platform of engaging in foreign exchange rate manipulation through currency speculation and rate fixing.
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It later detained two executives of the platform after they flew into the country as part of moves to negotiate with the Nigerian authorities amid a crackdown on the crypto platform.
In a notice sent to its customers, Binance noted that this discontinuation affects NGN services exclusively and users can continue to utilise services and products for other available cryptocurrencies on the platform.
However, a check on its website revealed that users in Nigeria could no longer access its platform or app, except through a Virtual Private Network (VPN).
THE VERDICT
The claim that Binance has left Nigeria is MOSTLY TRUE; the platform had earlier announced the discontinuation of all Nigerian Naira (NGN) services on its platform. Also, its platform is no longer freely accessible to users in Nigeria.
7. Microsoft
The global tech company, Microsoft, recently announced plans to shut down its Africa Development Centre, in Lagos, Nigeria. The firm explained that it was part of its normal organizational workforce adjustments.
A report by Vanguard and clarification by the Nigerian Presidency indicated that the shutdown of the centre does not mean the company is leaving the country.
Reuters also reported that the “company said it would, however, continue to operate in Nigeria, continuing to prioritize and invest in strategic growth areas.”
THE VERDICT
The claim that Microsoft has left Nigeria is FALSE; the company only shut down a centre in Lagos.
8. Bolt
In October 2021, Bolt, a ride-hailing company launched Bolt Food to simplify access to food in Lagos, Nigeria.
Bolt Food extended its reach to other places in Lagos, including Ajah, Sangotedo, Festac, Satellite Town, Egbeda, and Ogba, in April 2023.
In November 2023, the company announced its decision to cease the food delivery services starting from December 7, 2023.
But other services being rendered by the tech-driven ride-hailing platform such as transportation are still operative and there is no indication that the platform has a plan to shut down operations in the country.
THE VERDICT
The claim that Bolt is leaving Nigeria is FALSE; the company discontinued its food delivery service but there is no official announcement that it is exiting Nigeria.
Nurudeen Akewushola is a fact-checker with FactCheckHub. He has authored several fact checks which have contributed to the fight against information disorder. You can reach him via [email protected] and @NurudeenAkewus1 via Twitter.
