New Telegraph

How to stop foreign firms from leaving Nigeria, by Nextuer

A public policy advisoAry group, Nextier, has advised the Federal Government to use transparent foreign exchange (forex) dealings and tax incentives to stop multinational companies (MNCs) from leaving the country. It also advised the government to support indigenous startups and industries as well as apply concessionary duties on essential medical products. The advice followed Nextier’s research study on the circumstances leading to the exit of MNCs recently from Nigeria. It noted that within the last 10 months at least five MNCs, including household names in Fast Moving Consumer Goods (FMCG) such as GlaxoSmithKline Nigeria (GSK), Procter & Gamble, Unilever and Sanofi-Aventis Nigeria Limited, had decided to exit Nigeria.

The major reason cited by these MNCs for exiting the country bordered on the harsh business environment, even as available statistics on Nigeria’s business environment support the claim by the MNCs. However, in its report authored by Dr. Chukwuma Okoli, an Associate Consultant and Dr. Ndu Nwokolo, a partner, Nextier recommended that the political and social issues affecting businesses in the country needed urgent, international and locally-led solutions, such that government ought to do things differently to return trust in both local and foreign investments. The report pointed out that the exit of the MNCs should serve as an opportunity for the Nigerian state to deepen support for indigenous industries, firms and start-ups in various sectors, in the form of tax holidays, subsidies for inputs, and funding for research and development in areas that will catalyse innovation beneficial to the local industries. “To this end, there is an urgent need to operationalise the eight pillars of the National Digital Economy Policy and Strategy (NDEPS) and implement the provisions of the Nigeria Start-up Act 2022,” it said.

Read Previous

Super Eagles Gear Up For Guinea Friendly Ahead Of AFCON 2023

Read Next

Technician Electrocuted While Repairing Refrigerator In Ogun