In a constantly changing global economic context, more and more international companies are making the strategic decision to leave Nigeria and set up operations in other countries. This worrying trend highlights the economic challenges facing the country, with significant potential consequences for foreign investment and economic development.
According to a recent report by the International Business Research Corporation, many national oil companies in Nigeria are showing interest in acquiring the assets of international oil companies that are withdrawing from the market. However, it is emphasized that these local companies may not have the financial capacity to sustain these investments in the long term, which could lead to further economic instability.
This hemorrhage of foreign investment could be attributed to a difficult business environment characterized by corruption, nepotism, persistent insecurity and a significant infrastructure deficit. It is imperative that the country’s authorities take measures to ensure an attractive and stable business environment, in order to encourage investments and foster economic growth.
Over the past decade, Nigeria has seen the departure of many large companies, both in the manufacturing and consumer goods sectors, and more recently, in the oil sector. Multinationals such as Shell, Total, Chevron, ExxonMobil and Eni have expressed their intention to divest from some of their operations in the country, mainly on land sites in shallow waters.
It is essential that Nigeria takes steps to improve its business climate, strengthen transparency and combat corruption, in order to reassure potential investors and foster an environment conducive to economic growth. The changing global economic situation post-pandemic highlights the importance for Nigeria to put in place appropriate policies and reforms to attract and retain foreign investments essential for its sustainable economic development.