Asian, Turkish firms take over in Nigeria Asian and Turkish companies taking over as western multinationals depart Nigeria

 Despite the potential to offer a vast market for consumer goods due to population strength, major economic problems including, surging inflation, depreciating currency, rampant insecurity and electricity shortages are driving US and European multinationals out of Nigeria.

However, as these multinationals exit Nigeria, Asian and local companies are stepping in to fill the void, Bloomberg reported.

Last week, London-based Diageo Plc sold its controlling stake in Guinness Nigeria Plc to Singapore’s Tolaram Group Inc. The Fouani Group, a local firm, now operates a diaper and sanitary pad plant in a complex where Cincinnati-based Procter & Gamble Co. shut down a US$300 million facility making similar products.

Similarly, Lagos-based Fidson Healthcare is picking up the slack created by GSK’s departure by expanding its range and exporting its products.

Since becoming the president of Africa’s once-largest economy, President Bola Tinubu has introduced several policies, including fuel subsidy removal and currency depreciation, aimed at boosting government revenue and revitalizing the ailing economy.

However, these policies, criticized by many for poor implementation, have resulted in a haemorrhaging economy.

For instance, the naira has fluctuated wildly in recent months and has dropped 56 percent against the dollar over the past year, more than any other African currency. Hence, companies that rely on imported goods, raw materials, or equipment experience heightened costs, resulting in decreased profit margins. While the exits reflect how challenging the Nigerian consumer market has become, they also show the success of companies like Hayat and Tolaram. These firms have effectively adapted to the local market conditions, turning their brands into household names, according to Bloomberg. – Business Insider Africa

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