5 major companies exit Nigeria in 2023 to date

Some businesses have departed from Nigeria because of some difficulties of operation in the country, such as high inflation, volatile currency, and regulatory concerns, which have caused them to reconsider their activities within the nation.

This article looks at the recent exits of several significant companies from Nigeria, such as Equinor, Bolt, Binance, PZ Cussons, and GlaxoSmithKline. Gaining insight into these changes is essential to understanding Nigeria’s economic climate today and how it may affect foreign investment in the future.

Here are 5 major companies that exited Nigeria in 2023 to date

PZ Cussons

PZ Cussons, a popular household brand with roots in Nigeria dating back to 1899, sells items including Cussons Baby and Imperial Leather. The business declared a partial exit from the Nigerian market in 2023–2024 due to the inability to sustain operations at the same size with high inflation, currency depreciation, and diminished purchasing power.

Despite staying in the market, PZ Cussons’ decision to reduce operations is a strategic change brought on by economic pressures.

GlaxoSmithKline (GSK)

GSK is a prominent pharmaceutical company that has maintained a substantial presence in Nigeria since 1971. But in 2023 declared its departure, pointing to growth-stifling regulatory complexity and economic difficulties. Many were surprised by the healthcare giant’s exit because GSK has traditionally supplied necessary medical supplies.

Bolt

Bolt, a ride-hailing service established in Estonia which made its debut in Nigeria in 2016 and swiftly spread to several locations decided to reduce operations in 2023, to focus mostly on large cities like Lagos. Bolt has refocused on regions with greater demand and more advantageous circumstances despite its continued dedication to the Nigerian market which has helped it better handle the difficulties of doing business in the country’s vibrant metropolitan setting.

Binance

One of the biggest cryptocurrency exchanges, Binance, debuted in Nigeria in 2020, as interest in digital currencies grew throughout Africa. However, the Securities and Exchange Commission (SEC) of Nigeria stepped up its scrutiny, forcing Binance to temporarily halt some of its operations in 2023.

A halt has been imposed while Binance attempts to handle the intricate regulatory environment because regulatory bodies expressed concerns regarding investor protections and compliance issues. This has demonstrated how digital financial firms are negotiating the particular difficulties Nigeria faces in a highly regulated economy.

Equinor

Equinor, a Norwegian energy company, has been involved in Nigeria’s oil and gas industry since the early 1990s. Nevertheless, the business decided to leave the Nigerian market in 2023, mostly as a result of operational expenses and regulatory pressures.

Additionally, this choice is consistent with Equinor’s overarching plan to concentrate on renewable energy initiatives as part of a global movement toward sustainability.

The exit of Equinor highlights the larger trend of energy firms reassessing their participation in Nigeria’s oil sector in light of changing regulatory and environmental standards.