Financial analysts and economists have raised concerns over the continued exit, downsizing and restructuring of multinational companies operating in Nigeria, saying the country’s improving macroeconomic figures have yet to translate into a sufficiently favourable environment for businesses.
The latest major company to announce its departure from the Nigerian market is global ride-hailing giant Uber, which reportedly announced on Wednesday, September 2, 2026, that it would exit the country.
Uber’s decision adds to a growing list of multinational companies that have either completely left Nigeria, divested portions of their businesses or scaled down their operations since 2023.
Among the companies that have reduced or discontinued some operations in Nigeria are Unilever Nigeria Plc, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, Shoprite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, Bolt Food and Jumia Food Nigeria.
Between January and October 2024 alone, several major companies either exited the Nigerian market or reduced local production, amid growing concerns over the cost and difficulty of operating in the country.
The companies included Microsoft Nigeria, TotalEnergies Nigeria, PZ Cussons Nigeria Plc, Kimberly-Clark Nigeria and Diageo Plc.
Other firms have also undertaken major changes to their Nigerian businesses. Heineken/Champion Breweries sold a majority stake to EnjoyCorp, while Bolt Food discontinued its food delivery service in the country. Pick n Pay also sold its 51 per cent stake and withdrew from the Nigerian retail market.
Netflix, meanwhile, stopped commissioning Nigerian original productions, prompting fresh questions about the attractiveness of the Nigerian market and whether the returns on investment still justify the capital required to maintain operations.
When companies that exited or significantly reduced their Nigerian presence from 2020 are included, the number is estimated to be approaching 75.
Although some of the exits, including Uber’s decision, may have been influenced by factors unrelated directly to Nigeria’s economic conditions, analysts argue that the broader trend points to persistent structural weaknesses in the country’s business environment.
The concerns come despite signs of improvement in some key macroeconomic indicators.
Nigeria’s real Gross Domestic Product expanded by 4.43 per cent in the second quarter of 2026, while inflation eased to 15.43 per cent in July.
The naira has also recorded relative stability following the foreign exchange market reforms introduced in 2023, trading at N1,320.56 to the dollar on Monday, September 7, 2026.
However, economists say improvements in headline economic figures have not necessarily translated into better conditions for businesses or households.
Uber exit raises fresh concerns
Financial expert and Professor of Accounting at Lead City University, Godwin Oyedokun, said the continued departure or downsizing of multinational companies should be treated as a significant warning for policymakers.
Oyedokun cautioned against attributing every corporate exit to the administration of President Bola Tinubu, noting that Uber’s decision was also influenced by the company’s broader global strategy.
“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.”
He nevertheless said the wider pattern of multinational companies leaving or reducing their presence exposes a major disconnect between Nigeria’s macroeconomic performance and the realities confronting businesses.
According to him, companies continue to contend with expensive energy and financing, foreign exchange uncertainties, weak consumer purchasing power and regulatory unpredictability.
He said government efforts should now move beyond stabilising macroeconomic indicators and focus on creating an environment where businesses can operate competitively, expand their investments and generate employment.
Oyedokun said the ultimate measure of the government’s economic reforms should be whether the improvements recorded in economic statistics translate into increased business activity and investment.
“However, the broader pattern highlights an important contradiction in Nigeria’s economy: macroeconomic indicators may be improving, while the microeconomic environment remains challenging. GDP growth, improved foreign reserves and moderating inflation are positive developments, but businesses still face high energy and financing costs, exchange-rate risks, weak consumer purchasing power and regulatory uncertainties.
“The real test of President Tinubu’s reforms is therefore not only whether the macroeconomic statistics look better, but whether businesses are investing, expanding and creating jobs. Nigeria must now move from macroeconomic stabilisation to genuine economic competitiveness. Good statistics are important, but they must ultimately translate into stronger businesses, more investment, jobs and improved living standards for Nigerians,” he told DAILY POST.
High operating costs squeeze profits
The Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, attributed the difficulties faced by multinational companies largely to the rising cost of doing business and the weakening purchasing power of Nigerian consumers.
Idakolo explained that Nigeria’s huge population and perceived market potential initially made the country attractive to international companies seeking profitable opportunities.
However, he said the economic realities confronting consumers and businesses have significantly altered that calculation.
“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.
“The cost of doing business in Nigeria is still very high, with infrastructural gaps yet to be filled, coupled with security challenges.
“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, which can be attributed partly to the higher exchange rate and inflation.
“The businesses also battle with high operating expenses, which are caused by the high cost of energy. Most of these companies that still remain in the country have either downsized or sold part of their business.
“Those that cannot withstand the economic realities in the country have exited the country and moved their operations elsewhere,” he told DAILY POST.
The analysts’ comments suggest that Nigeria’s challenge may no longer be limited to achieving macroeconomic stability but also ensuring that those gains are reflected in the day-to-day operating environment.
For multinational companies, the combination of energy costs, infrastructure deficiencies, financing expenses, foreign exchange exposure, security concerns and reduced consumer spending can significantly affect profitability.
The continued restructuring and exit of major companies therefore places renewed pressure on the government to ensure that economic reforms translate into a more competitive environment capable of attracting and retaining both domestic and foreign investment.
The key question now is whether Nigeria’s improving economic indicators can eventually produce tangible improvements in business confidence, investment, job creation and household purchasing power.