Financial analysts and economists have identified high operating costs, weak consumer purchasing power, exchange-rate risks and regulatory uncertainties as major factors behind the continued exit or downsizing of multinational companies in Nigeria.
Global e-hailing company Uber became the latest major firm to announce its departure from the Nigerian market on September 2, 2026, joining a growing list of multinational companies that have either exited the country, divested or scaled back their operations since 2023.
Other companies that have reduced or discontinued parts of their Nigerian operations in recent years include Unilever Nigeria, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria, Shoprite Nigeria, Sanofi-Aventis Nigeria, Equinox Nigeria, Bolt Food and Jumia Food Nigeria.
Between January and October 2024, several other major companies also exited or reduced their local operations amid mounting economic pressures. They included Microsoft Nigeria, TotalEnergies Nigeria, PZ Cussons Nigeria, Kimberly-Clark Nigeria and Diageo.
Several firms have also restructured their Nigerian businesses. Heineken/Champion Breweries sold a majority stake to EnjoyCorp, while Pick n Pay disposed of its 51 per cent stake and exited the Nigerian retail market. Bolt Food also discontinued its food delivery service in the country.
Netflix, meanwhile, stopped commissioning Nigerian original productions, raising concerns over the viability of investments in the Nigerian market.
When the period is extended to 2020, the number of multinational companies that have exited Nigeria or significantly reduced their presence approaches 75.
While some corporate exits have been driven by global strategies and restructuring decisions rather than Nigeria-specific challenges, analysts say the broader trend highlights persistent weaknesses in the country’s business environment.
This comes despite recent improvements in some macroeconomic indicators.
Nigeria’s Gross Domestic Product grew by 4.43 per cent in real terms in the second quarter of 2026, while inflation moderated to 15.43 per cent in July. The naira has also recorded relative stability following the foreign exchange market liberalisation of 2023, trading at N1,320.56 to the dollar on September 7, 2026.
However, economists argue that improvements in headline economic figures have yet to fully translate into relief for businesses and households.
Uber exit raises fresh concerns
Financial expert and Professor of Accounting at Lead City University, Godwin Oyedokun, said the continued exit or retrenchment of multinational companies should be a major concern for policymakers.
He, however, cautioned against attributing Uber’s decision directly to President Bola Tinubu’s administration, noting that the company’s departure was also linked to its global restructuring and strategic direction.
“The continued exit or retrenchment of multinational companies from Nigeria, including Uber, should concern policymakers, although it would be wrong to attribute every corporate exit directly to the Tinubu administration. Uber’s decision also reflects its global restructuring and strategic shift,” Oyedokun said.
He said the wider pattern of corporate exits exposes a contradiction in Nigeria’s economy, where macroeconomic indicators may be improving while the microeconomic environment remains difficult.
According to him, businesses continue to contend with high energy and financing costs, exchange-rate risks, weak consumer purchasing power and regulatory uncertainties.
Oyedokun urged the government to move beyond macroeconomic stabilisation and focus on creating an environment that encourages businesses to invest, expand and create jobs.
He said the real measure of the Tinubu administration’s economic reforms should be whether improved economic statistics translate into stronger businesses, increased investment, job creation and better living standards.
High operating costs squeeze profits
The CEO of SD & D Capital Management, Gbolade Idakolo, said multinational companies were initially attracted to Nigeria largely because of its huge population and the potential for strong returns.
However, he explained that declining consumer purchasing power and rising operating expenses have significantly eroded those projected profits.
“The Nigerian economy under the Tinubu administration has been improving; at least some key indices have turned positive. However, the business environment remains hostile because most of the government’s reforms have not translated to real-time economic reprieve for businesses and Nigerians as a whole,” Idakolo said.
He identified inadequate infrastructure and security challenges, alongside high energy costs, as major obstacles to doing business in Nigeria.
According to him, the depreciation of the naira and inflation have reduced the purchasing power of consumers, making it increasingly difficult for companies to maintain profitability.
“The cost of doing business in Nigeria is still very high, with infrastructural gaps yet to be filled, coupled with security challenges,” he said.
Idakolo added that companies that remain in Nigeria have increasingly resorted to downsizing, selling parts of their businesses or restructuring their operations.
“Most of these multinationals were attracted by the population of the country and believed that if they could get a share of the business in their sector, it would definitely be profitable. The projected profits have been eroded by the reduction in the purchasing power of Nigerians,” he said.
He noted that rising energy and other operating costs had further weakened the ability of companies to remain profitable, forcing some businesses that could not withstand the pressure to leave Nigeria altogether.
The analysts’ assessment suggests that while recent improvements in Nigeria’s macroeconomic indicators are encouraging, the country still faces the challenge of converting those gains into a more competitive business environment capable of retaining existing investors and attracting new ones.
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