P&G exit : Why more investors will leave Nigeria – Atedo Peterside - Newstrends
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P&G exit : Why more investors will leave Nigeria – Atedo Peterside

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Atedo Peterside

P&G exit : Why more investors will leave Nigeria – Atedo Peterside

An Economist and Founder of the Stanbic IBTC Bank, Mr. Atedo Peterside, has stated that businesses that value rule of law, policy consistency, macroeconomic stability and level playing field would continue to depart from Nigeria, saying only investors who know how to “partner” with politicians would stay.

Peterside’s sober and penetrating insights to the factors behind the trend where some multinational manufacturing concerns were shutting down operations and leaving the country followed the announcement by Procter &Gamble (P&G) to stop its manufacturing activities in Nigeria.

Peterside wrote on his X (Twitter) handle: “Another way to look at this @ProcterGamble exit story is that multiple investors who cherish the rule of law, policy consistency, macroeconomic stability, a level playing field etc. are running away from Nigeria.

“They are being ‘replaced’ only partially by investors who know how to ‘partner’ with politicians and/or game the system through waivers, exemptions etc.”P&G is the third multinational to announce its exit from Nigeria after GlaxoSmithKline Consumer Nigeria Plc (GSK) and Sanofi-Avantis Nigeria Limited, a French pharmaceutical company had announced similar decisions.

Also reacting to P&G’s decision to quit Nigeria, the Director General of Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Ayorinde, urged the federal government to take proactive action to stop businesses organisations from moving out the country because, “these regrettable departures will persistently undermine the federal government’s efforts to attract Foreign Direct Investment, rendering its initiatives ineffective.

”NECA, according to Ayorinde, “strongly emphasised the immediate need for decisive measures to halt the ongoing trend of companies divesting from the country.

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“We urge a quick and definitive action to arrest the continuous exit and divestment of legitimate organisations in Nigeria.

In the last few years, hitherto strong brands, both multinationals and strong local brands have either closed shop or divested fully or partially.”He noted that Nigeria’s “challenging business landscape, marked by stringent regulatory and legislative activities, insufficient infrastructure, and policy inconsistencies collectively exacerbates the difficulties faced by businesses.”

He observed that the situation whereby, “regulatory bodies tasked with fostering business growth persist in prioritising revenue generation at the expense of their core mandate while legislators, in the guise of oversight functions, consistently create impediments for organised businesses, hindering their operations” would frustrate businesses and foster their exit from Nigeria.

Oyerinde, “earnestly implored President Bola Tinubu, as well as the Minister for Finance and the coordinating Minister of the Economy, to prioritise the survival of local businesses as the primary step before actively seeking Foreign Direct Investment.”He, however, commended the federal government for supporting the Small and Medium Enterprises (SMEs), and manufacturers through the disbursement of N125 billion as part of Presidential Palliative Programme (PPP).The Director General of Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, described the increase in exit plans, or a reduction in involvement in the Nigerian market, by the multinationals as worrisome.

Almona said: “In Nigeria, lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, have taken a toll on many businesses in the country.“The chamber recommends that the government should implement measures to stabilise and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments.

“The LCCI also implores the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.“Furthermore, the chamber urges the government to engage multinational corporations and the business community to understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria.“The CBN should prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability.”

Recently, the Chief Financial Officer of P&G, Mr. Andre Schulten, stated at the Morgan Stanley Global Consumer & Retail Conference that “we have 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.”

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Schulten added that “the other 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.“So with that in mind, we are announcing a restructuring program with the intent to adjust operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point.”

The P&G, in its 2023 annual report for the fiscal year that ended on June 30, 2023, which was prepared in pursuant to Section13 or 15(d) of the United States Securities and Exchange Act of 1934, categorically identified conditions that might cause it to remove its operation from any country.It stated that there would be “need to de-consolidate or even exit certain businesses in particular countries” where its business, operations or employees have been and could continue to be adversely affected by “geopolitical conflicts, political volatility, trade controls, labor market disruptions or other crises or vulnerabilities in individual countries or regions (including) deterioration in the creditworthiness of local governments, particularly in emerging markets.

“Our business could be negatively impacted by reduced demand for our products related to one or more significant local, regional or global economic or social disruptions. These disruptions have included and may in the future include: a slow-down, recession or inflationary pressures in the general economy; reduced market growth rates; tighter credit markets for our suppliers, vendors or customers; a significant shift in government policies; significant social unrest.

“Results of elections, referendums, sanctions or other political processes and pressures in certain markets in which our products are manufactured, sold or distributed could create uncertainty regarding how existing governmental policies, laws and regulations may change, including with respect to sanctions, taxes, tariffs, import and export controls and the general movement of goods, materials, services, capital, data and people between countries.

“The potential implications of such uncertainty, which include, among others, exchange rate fluctuations, new or increased tariffs, trade barriers and market contraction, could adversely affect the company’s results of operations and cash flows.”

It stated further that it is “a global company, with operations in approximately 70 countries and products sold in approximately 180 countries and territories around the world.

“Fluctuations in exchange rates for foreign currencies have and could continue to reduce the U.S. dollar value of sales, earnings and cash flows we receive from non-U.S. markets, increase our supply costs (as measured in U.S. dollars) in those markets, negatively impact our competitiveness in those markets or otherwise adversely.

“Moreover, discriminatory or conflicting fiscal or trade policies in different countries, including changes to tariffs and existing trade policies and agreements, could adversely affect our results.”

P&G exit : Why more investors will leave Nigeria – Atedo Peterside

(THISDAY)

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Opinion

2027: Competence, Not Zoning, Should Decide Nigeria’s Next President — Imasuagbon

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Nigerians should look beyond ethnicity, region and the longstanding debate over rotational presidency when choosing the country’s next leader, according to a chieftain of the African Democratic Congress (ADC), Kenneth Imasuagbon.

The former Edo State governorship aspirant said the priority ahead of the 2027 election should be finding a president with the ability to confront Nigeria’s economic, security and infrastructure challenges.

Speaking to journalists in Benin, Imasuagbon argued that presidential rotation is not a requirement of the Nigerian Constitution and should therefore not outweigh the question of competence.

He said voters should be more concerned about replacing poor schools with better ones, improving healthcare and addressing hardship than debating where the next president comes from.

Imasuagbon specifically appealed to voters in the South to support former Vice President Atiku Abubakar, who is contesting the 2027 presidency on the ADC platform.

According to him, Atiku has demonstrated the experience and determination needed to improve the country, describing the former vice president as someone capable of promoting national unity and fairness.

He also accused the Bola Tinubu administration of worsening economic pressure through policies including the removal of fuel subsidy, while expressing concern about the condition of roads, electricity and other infrastructure.

Imasuagbon argued that the next administration must focus on practical improvements in areas such as power, transportation, employment, security and public services.

The ADC chieftain also dismissed the idea that the ruling All Progressives Congress (APC) would automatically benefit from its incumbency advantage in 2027.

He maintained that the electorate ultimately determines the outcome of an election, arguing that voters could change the political direction of the country if they were determined to do so.

Imasuagbon further criticised what he described as regional and ethnic considerations in the distribution of political appointments and opportunities, insisting that the next president should give Nigerians across different parts of the country a sense of belonging.

His comments come as political parties and their candidates intensify preparations for the 2027 presidential election.

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Lesson from Dotun Oladipo’s Brave Daughters, by Bamidele Johnson

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Lesson from Dotun Oladipo’s Brave Daughters, by Bamidele Johnson

 

I hope to grow old. I want to see my kids become real adults, find their own feet, make mistakes, recover from them, and perhaps one day complain that their own children are giving them grey hairs. I want that plainly stated before anything else, as everything that follows might read as a man agreeing to an early exit rather than a man simply being honest about the odds.

I want the decades. I want to become the grandfather who repeats the same stories until nobody bothers correcting him anymore. But wanting a thing and being granted are different things. The last year has made that difference harder to ignore than I would like. I have lost many friends recently to keep thinking that optimism is my natural resting state. Some of these men had better blood pressure than mine, better habits, better everything that is supposed to count. It did not save them.

There is no formula I know that reliably separates the men who make it to 70 from those who do not. Anyone who says he knows one is selling something. So, I do not assume that old age is an already booked destination. Even if I once did, which I doubt, the last three years have cured me of such an illusion. As such, I treat it as a hope rather than an expectation, and I have found that a more honest way to live.

It is exactly why I want something placed on record now, while I am still able to place things on record, rather than leave it for people to guess what my wishes were in the fog of a funeral week. If I do not make old bones, my children are not to be asked to read tributes at my funeral. Not one line, however short, however lovingly written.

This, for me, was settled today rather than re-opened. At Dotun Oladipo’s funeral service, his three daughters took turns to read their tributes to their dad, and I found myself watching them with awe. There was a kind of strength in them that I do not possess. It is the strength needed to stand in front of a hall brimming with grieving adults and speak about a man they have just lost. Forever. Strength, however, is not the same as ease. I could see plainly what that strength was costing them as they read. Their voices caught. Their composure held and then did not hold and then held again through sheer will.

In front of them, in the pews, men and women considerably older than them came undone in ways the girls themselves were somehow managing to resist. I went mightily close. Some of the sobbing was quiet, the type people try to fold into a handkerchief. Some of it was not quiet at all, the kind that announces itself whether or not you want it.

Those young women honoured their father with a grace that is beyond me. What they did was astonishing. So, what I am attempting is an observation of a custom I have now watched wound people. This was not the first time I had watched this particular ritual extract more than it should from people already running on fumes. I saw an earlier and harder version of it at a friend’s wake back in 2015.

The first son was called forward to read his father’s tribute, and he could not do it. He tried, but the words would not come, and he stood there in front of a crowd of mourners, with his grief simply refusing to organise itself into sentences. The officiating minister, rather than releasing him from the task, urged him to continue. I sat fizzing with sorrow and ire. He could not go on and, eventually, the minister accepted, but not before insisting a while longer than it should have reasonably taken. His younger brother was called up next, presumably on the theory that if one grieving son could not manage it, maybe another one could. He flunked it in the same way. Grief does not distribute itself more conveniently among siblings just because a programme has been printed and needs to be followed.

I have turned that memory over many times since, trying to work out why this part of the rites is treated as mandatory in the first place. I have not found a satisfying answer. Maybe it comes from a belief that a child’s words carry more weight than anyone else’s, which may even be true, but weight is exactly the problem when those carrying it are struggling to hold themselves together with nothing but adrenaline and the fear of dissolving in public.

Maybe it is simply inertia, the reason we still do a hundred things at funerals that nobody can explain the original purpose of. Either way, I have stopped looking for the justification. I no longer think one exists that is good enough to weigh against what I watched happen to that boy in 2015.

So, let this stand as my instruction rather than my preference, the kind of thing I would rather state plainly now than leave for my children to infer later from how uncertain I sound when the subject comes up in passing. If I do not get the old age I am hoping for, my children will not be asked to read a single word over my body. Someone else can speak for me. A friend, a stranger with a steadier voice and a smaller stake in the loss, anyone whose grief will not be quite so total that standing upright becomes almost impossible.

My children, of course, will sit in front and fall apart if that is what the day requires of them, but without the microphone. That, at least, is one small mercy I intend to arrange for them while I am still here to arrange it.

Dotun deserved every bit of the send-off his daughters gave him today, and I suspect he would have been the first to tell them to sit down and let someone else carry the weight for a while. He did not get a say in that, as none of us ever do once we are the ones being spoken of rather than the ones speaking. Rest well, Dotun. You raised three young women whose strength I will not soon forget. That alone says everything worth saying about the man you were.

 

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‘Tinubu Will Win Again in 2027’ — Charismatic Bishops’ Secretary

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‘Tinubu Will Win Again in 2027’ — Charismatic Bishops’ Secretary

A senior Nigerian cleric, Archbishop Chivir Chianson, has declared that President Bola Tinubu will retain the presidency after the 2027 general election, attributing the prediction to a message he said came from God.

Chianson, who serves as Secretary General of the Charismatic Bishops’ Conference of Nigeria, made the statement while appearing on Arise Television on Saturday.

Rather than basing his prediction on political calculations, the archbishop said his confidence came from what he described as the prophetic role of bishops.

He maintained that the conference had previously spoken about Tinubu’s political future based on what he said was divine revelation and that the President would return for another term.

Chianson also predicted that Tinubu’s performance would improve if he wins the 2027 election.

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Addressing the political opposition, the cleric said the bishops could not be blamed if rival parties failed to unite or organise themselves effectively ahead of the election.

He also sought to clarify the position of the bishops when dealing with government, saying their role in speaking truth to power did not mean they should approach political leaders with hostility or disrespect.

According to him, the Constitution, alongside their religious convictions, should guide how they engage the President and the country.

Chianson said he was sufficiently confident in his prediction to promise that he would return to the Arise TV studio after the 2027 election, when he expects the result to demonstrate that the bishops’ prophecy was correct.

His comments add a religious dimension to the increasingly active political conversation surrounding the 2027 presidential race.

‘Tinubu Will Win Again in 2027’ — Charismatic Bishops’ Secretary

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