Atedo Peterside, founder of Stanbic IBTC Bank has noted that investors who value rule of law have been running away from Nigeria.
Peterside, and Anap Foundation, made this assertion in a statement via his X handle on Thursday, in reaction to the exit of P&G, which became the latest foreign company to leave the country.
According to him, businesses that value rule of law, policy consistency, macroeconomic stability, and a level playing field would continue to depart from Nigeria.
He added that only investors who know how to “partner” with politicians would stay.
Peterside stated, “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 announced similar decisions.
Recall that the Chief Financial Officer of P&G, Mr. Andre Schulten, recently 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.”
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.”