CIoD worried over economic repercussions of business closure

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Worried over the mass exit of multinational firms from the country, the Chartered Institute of Directors (CIoD, Nigeria, has warned against the economic repercussions.

Worried over the mass exit of multinational firms from the country, the Chartered Institute of Directors , reliable power, efficient infrastructure and improved security would not only help in mitigating the trend but would also attract new businesses.

This, in turn, it said, would lead to increased investment, job creation and economic growth, ensuring the “Giant of Africa” retains its position as a leading destination for foreign investments in Africa. Director General/Chief Executive Officer, CIoD Nigeria, Bamidele Alimi, in a position paper ‘On the Exodus of Multinationals from Nigeria’, said the exit of businesses has raised concerns about the business climate in the country and the ability to attract and retain foreign investment.

He said with the country experiencing a significant exodus of multinational companies over the past decade, there is a need to understand the reasons behind the trend and explore solutions to achieve economic stability. Mentioning some household names like Procter & Gamble , GlaxoSmithKline and Kimberly-Clark that left the Nigerian market, he said even though some opted to transform to third-party model, they have left behind a trail of lost jobs, investments and economic uncertainty.The volatility in the exchange rate creates untold hardship for businesses.

 

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