In a growing trend of companies exiting Nigeria due to economic challenges, currency volatility, and high operational costs, South African grocery retailer Pick n Pay has announced it will leave the market by selling its 51% stake in a joint venture. The decision, confirmed on Monday, aligns with what CEO Sean Summers described as “the company’s broader restructuring plan outside its home market.”
Pick n Pay entered Nigeria in 2016 through a partnership with A.G. Leventis (Nigeria) and opened its first store in 2021, operating two locations to tap into the country’s expanding consumer demand. However, rising economic and regulatory pressures have now impacted the viability of this investment. Economist Vincent Nwani noted that “over 10 companies shut down operations in 2020 alone, and more than 20 companies exited the country” in subsequent years.
Below is a year-by-year breakdown of companies that exited the Nigerian market from 2020 to mid-2024.
2020:
In 2020, more than ten companies exited the Nigerian market, as the impact of economic instability and other operational challenges became evident. Notable closures included:
– Standard Biscuits Nigeria Ltd
– NASCO Fiber Product Ltd
– Union Trading Company Nigeria PLC
– Deli Foods Nigeria Ltd
2021:
The departure of companies escalated in 2021, with over 20 firms shutting down operations in Nigeria. Among those who left were:
– Tower Aluminium Nigeria PLC
– Framan Industries Ltd
– Stone Industries Ltd
– Mufex Nigeria Company Ltd
– Surest Foam Ltd
2022:
The trend persisted in 2022, with more than 15 prominent brands ceasing operations in the country, including:
– Universal Rubber Company Ltd
– Mother’s Pride Ventures Ltd
– Errand Products Nigeria Ltd
– Gorgeous Metal Makers Ltd
2023:
The wave of exits continued in 2023, as over ten major companies pulled out from Nigeria, citing profitability concerns and challenging business conditions. Notable departures included:
– Unilever Nigeria PLC
– Procter & Gamble Nigeria
– GlaxoSmithKline Consumer Nigeria Ltd
– ShopRite Nigeria
– Sanofi-Aventis Nigeria Ltd
– Equinox Nigeria
– Bolt Food & Jumia Food Nigeria
2024 (January – October):
In the first six months of 2024, at least five significant companies exited, as the business climate remained difficult. These included:
– Microsoft Nigeria
– Total Energies Nigeria (impacted by divestment strategies)
– PZ Cussons Nigeria PLC
– Kimberly-Clark Nigeria
– Diageo PLC
