J.K. Randle Asks FG To Investigate ‘Imminent Departure’ Of Multinational Companies From Nigeria

Eko Hot Blog reports that the former president, Institute of Chartered Accountants of Nigeria, Bashorun J.K. Randle, has raised the alarm over the “imminent closure/departure” of some multinational companies from Nigeria.

The author of many books shared his concern in a terse statement issued on Monday.

His statement came less than a week after Procter & Gamble (P&G) announced its intention to halt local production in Nigeria.

P&G, which makes products such as Oral-B toothpaste, Always pampers, and many other home essentials, said it would focus solely on importing its products as it winds down its on-ground presence in Nigeria.

Similarly, in August, GlaxoSmithKline (GSK) Consumer Nigeria Plc, which produces Augmentin, Neosporin, Panadol, Sensodyne, Advair, Ventolin, Theraflu, among others, announced plans to cease operations in Nigeria and transfer its business activities to a third-party company.

Reacting to the trend, Bashorun Randle expressed worry that Nigeria’s economy may be significantly hurt, while warning that some multinational companies are planning their exit.

The chartered accountant, therefore, called on President Bola Tinubu to swiftly task relevant ministries and agencies of the Federal Government to get to the root of the problem.

Bashorun Randle, who lamented that thousands of Nigerians are being laid off two/three weeks before Christmas, warned that the Nigerian economy may suffer “monumental and irreversible” damage as it did in 1972.

“The imminent closure/departure of multinational companies from Nigeria calls for SWIFT and MASSIVE/ROBUST dialogue to be initiated by Mr President who would mandate the relevant agencies–Ministry Of Finance; Central Bank of Nigeria; Ministry Of Trade & Industry; Bank of Industry and the Organized Private Sector plus leading businessmen/ women plus Ambassadors and professionals to get to the root of the problem,” the statement reads.

“After all, the situation in Ghana is worse but the same companies are still operating there.

“We faced a similar situation after the 1972 Indigenisation Decree and again subsequent to the Structural Adjustment Programme (SAP).

“The damage was monumental and irreversible.”

Earlier on Monday, Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria (MAN) expressed regret over P&G’s exit from Nigeria, saying other manufacturers may follow suit.

Speaking with Channels TV, he said there will be more exits in the manufacturing sector until the federal government implements clearly defined measures to address the issues facing the nation’s manufacturers.

“Obviously, we received it (P&G exit) with sadness but it is not totally unexpected and more may happen because there is no doubt that we operate in an environment that is challenged,” he said.

“Manufacturing in any economy is a strategic choice, the government has to make up its mind whether it wants its country to be an industrialised one.

“Once that decision is taken, you have to do all that is needed to remove the binding constraints that limits the performance of that sector, Nigeria has not done so and that is why you can see there are closures.

“I think it is news because it is Procter and Gamble, it is news because it is GlaxoSmithKline, it is news because they have been in the country for a very long time, but there are several others that have died quietly and for reasons that are clearly avoidable.”

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