GSK Company, Other Multinationals Are Sadly Leaving Nigeria Over Government’s Poor Economic Management – Peter Obi | #NwokeukwuMascot
|Mr Peter Obi
The presidential candidate of the Labour Party (LP) in the 2023 general elections, Peter Obi, has blamed the proposed exit of the British pharmaceutical giant, GlaxoSmithKline (GSK) from Nigeria after 51 years on poor economic management by the President Bola Tinubu-led Nigerian government.
SaharaReporters on Friday reported that GlaxoSmithKline, GSK Nigeria announced its plan to cease operations in Nigeria after evaluating the options for moving to a third-party distribution model for its drugs and consumer healthcare goods.
GSK Nigeria, which has faced increased competition from local companies and imports from India and China, said its half-year sales had dropped to N7.75 billion ($9.82 million), from N14.8 billion in the same period a year ago.
GSK Nigeria said it is working with advisers to agree next steps and plans to submit a scheme of arrangement to Nigeria's Securities and Exchange Commission, which if approved will see it return cash to shareholders except its parent GSK.
Reacting to the development, the former governor of Anambra State who regretted the exit of the company said that the company’s reason for leaving Nigeria was disheartening as they no longer perceived a prospect for Nigeria as a business environment that would be anchored on productivity.
He said that Nigeria had painfully come to a point where multinationals were leaving the country and the local ones were closing down, describing it as consequences of cumulative poor management of the country’s economy.
Obi, who said this on his Twitter handle on Friday night said, “Today, I was saddened to hear that GlaxoSmithKline (GSK), is exiting Nigeria after 51 years of operation. Their reason for leaving Nigeria is even more disheartening; they no longer perceive a prospect for the country as a business environment that would be anchored on productivity.