Continued Exit Of Multinationals Worries Nigerians

…Seek Review Of Unfavourable Business Policies

…Task FG On Multiple Taxation, Other Financial Burdens

LAGOS  – Dr John Kome, the Peo­ples Democratic Party (PDP) House of Assem­bly candidate for Ikeja Constituency 1 in the last general elections, has blamed the Feder­al Government for allowing the conditions that are driving away multinational companies from Nigeria.

Dr. Kome is one of those who spoke to SUNDAY INDE­PENDENT on the development which they described as scary on account of its economic im­plications.

He maintained that no coun­try survives on local content when it comes to industrialisa­tion, not even the big industri­alised nations like the US, UK, China, South Africa, etc.

According to him, “When you visit these countries, you find out that other nationals own several companies and firms operating there.

“Big investors take advantage of one or more friendly environ­ments palatable for business cre­ated by the Governments of those countries.

“Ours in Nigeria is opposite. Instead of wooing investors, mul­tinationals are leaving Nigeria, both the government and the people kept mute.

“This is a bad omen for the Ni­gerian citizens whose intention is to run out to these industrialised nations for the same jobs that can be created back home by every­one.

“The government alone can­not create the enabling environ­ment for industries to thrive. Nigerians themselves have a huge part to play, no matter how small.”

Kome stressed: “For example, our attitude to work is quite dis­couraging to investors; whether local or foreign investors.

“Personally, I have set up and created jobs through small scale firms, but dishonesty, greed for quick money making, lackadaisi­cal attitude to work, etc, brought my investment to total closure of these micro companies.

“Yes, the cost of running busi­nesses in Nigeria is not encourag­ing due to absence of electricity, insecurity, exchange rates of the Nigerian currency, bad leader­ship on the part of we politicians, weak fiscal and financial policies and many more absurd reasons.”

Kome added: “The Federal Government should declare a State of Emergency on the power sector and make a deliberate and conscious effort to overcome the demon that has plagued electric­ity generation for decades.

“It can be done, and whichev­er Nigerian President that will fix this power palaver will go into the historical minds of Nigerians forever and ever as the best Pres­ident ever.

“Yes, the cost of running busi­nesses in Nigeria is discouraging, instead of encouraging.

“In addition, it will suffice us to know that there are lots of Nigerians in the Diaspora who are willing and ready to repatri­ate their legitimate wealth made overseas, back home to help their home country by investing in in­dustries, healthcare, etc, but they are afraid not to lose their hard earned resources back home for reasons enumerated earlier.”

Dr Bolaji O Akinyemi, a cler­ic and Convener, The Apostolic Round Table (ART), stated: “The question is: Why are they leav­ing?

“The basic reason will be the cost of doing business as a result of our prostrate economy compli­cated by the rising cost of dollars and that of energy.

“The government has to re­juvenate the economy vis a vis taming the rise of the dollar and by attending to the industrial en­ergy needs of the country.

“The only way to do that is to show their commitment to grow the economy through a national cultural evolution of preference for made in Nigeria goods.

“Attracting Direct Foreign Ex­change may take time, but moti­vating local production of needed products by such multinational companies is an alternative, par­ticularly in the pharmaceutical industry with direct implications on the health of the citizens.

“It is unfortunate that NAF­DAC is rather complicating things for small and medium en­terprises. The primary purpose of that agency is not for revenue generation, but safe consump­tion. They seem to have inverted their purpose.

“The relevant National As­sembly Committees should step up their oversight duties of min­istries, agencies and parastatals as it affects doing business in Nigeria.

“There is no reason, for example, why the Senate Com­mittee on Industry should not call for a stakeholders’ meeting to resolve the crisis created by the exit of a big pharmaceutical company at bridging the supply gap through local alternative production.”

Bishop Joseph Ighalo Edoro, a cleric and public affairs com­mentator, in his response stated: “Multinational companies con­stitute and provide a great posi­tive impact on our economy. This is evidenced in job creation and corporate social responsibilities. This is expected.

“However, the reasons for multinationals and their com­panies leaving Nigeria are due to a number of factors, namely regime change and policy fluc­tuations, insecurity, taxation and multiple taxation, inability to re­patriate funds back to their home countries and more.

“Nigeria, bedeviled by a lot of problems, has had to see the exit of Procter and Gambo, Glasgow SmithKline, Uber, to mention a few.

“The prevailing conditions are making it very difficult for these companies to operate. The issue of enabling the environ­ment, which can take cognisance of the above issues, will see these companies staying back.

“The fall of the naira, the is­sue of high cost of fuel and diesel and the issue of electricity will continue to scare multinationals and their investments.

“Government cannot say they are wooing foreign investors when the environment is not working. Nobody wants to put his or her money into growing a business in a fractured environ­ment.

“Today, the result is that a high rate of these multinationals has exited Nigeria for a friendlier environment like Ghana.

“Nigerian government must, as a matter of urgency, relax its measures on taxation and multi­ple taxation as well as thin down its harsh policies in terms of re­patriation of funds.

“Security must be key. As these multinationals leave in droves, unemployment is reach­ing an alarming rate. This also comes with consequences.”

Comrade Aluh Moses Odeh, National Leader, All Middle Belt Youth Forum (AMBYF), stated: “Multinational companies leav­ing the country in droves should give the government a serious concern to sit back and have a rethink on what could be the reasons.

“President Bola Tinubu must understand that no businessman would be interested in investing where he cannot get his return on investment.

“When you dare to invest in a business in Nigeria, over taxa­tion and unfriendly investment policies will kill that business immediately. Government should create an enabling environment for businesses to thrive.”