Nigeria Loss -$4.1bn Due To Di-investment of 5 Multinational Corporations by Kenny Odugbemi

555 Views

1, America Multinational consumer goods company Procter and Gamble has announced the termination of her ground operation in Nigeria, now prepared to transform into an import-focused market.
P&G vitals:
Net sales $50m,
Portfolio estimate at group level $85bn,
Employment capacity in Nigeria 5000, who will hence forth be jobless.
This decision will only have minimal impact on their group balance sheet in terms of sales and profitability.

Thank you for reading this post, don't forget to subscribe!

2, Glaxo SmithKline announced withdrawal from Nigeria due to the Standard and poor rated Nigeria economy.
Secondly, their global strategy and the challenges of the global supply chain crisis had a major impact on their relocation of their manufacturing operation.

3, Haleon plc also announced termination of their distribution agreement and is now ready to appoint a third party

4, Sanofi a French pharmaceuticals company, also announced their exit to appoint a third-party distributor to handle their commercial portfolio from February 2024

4, Bolt food also announced a difficult decision to discontinue its food delivery so as to streamline her resources to maximize overall efficiency.
Their major concern is increase of fuel price fee (20-50)% in economic environment where consumer power spending has been greatly eroded by rising inflation.
All these anomalies inhibited them not to be able to cover their operational costs to attain productivity

ALSO READ  Nigeria Economic Growth (Turbulent Times & Warning Lights)

Bolt ride also have similar challenges in their logistics operation

Problems Facing Nigeria

Major problems are connected with increased difficulties occasioned by continued devaluation of Naira, state of insecurity due to terrorism, kidnapping, killings and destruction of properties, power crisis coupled with unpredictability of Nigeria foreign exchange rate despite unification.

Economic Vitals
Fy 2022 Manufacturers cumulatively spent $144bn to provide alternative power

Review of manufacturing sectors
Manufacturing is almost dead because of complex macro economic variable

Power system optimization

Resolving power supply problems is now Germaine and Sacrosanct
We had in 1980 developmental energy plan of 6000MGW to be completed by 1985, all efforts were truncated by unpatriotic cabal involved in sales and distribution of generators, if we had shown more seriousness, we ought now to be self reliant.

Current situation
Self generation of power, aforementioned is too expensive
Capitalizing to establish Solar farms can only be through development partner injection, millions of dollars

Nigerian citizen
We have low per Capital income
Men + money = Market (Reference Olu False formula)
We have extremely poor infrastructure without reasonable capital injection, Disco’s did not invest in anything substantial. The three tier generation, transmission and distribution FG wasted injection of N2.6trn despite privatization of generation which is epileptic due to inadequacy of gas and continuous collapse of government run transmission line.
Discos, still using legacy PHCN, frustrated distribution of prepaid meter, rather prefer ridiculous estimate
We are faced with the current hike in kWh cost for residential, N60- N100 rate for residential estate

ALSO READ  "Majority of you here are foolish and stupid, do you expect me to join your poverty caliber" Bobrisky blast fans on instagram.

Present government effort about improving power

Deregulation of power plus removal from exclusive list to concurrent list of Nigeria constitution hence State can independently generate, transmit and distribute power with three tier license.
Power capacity at 1MGW does not require a license

Reduction of debt service in Fy 2024 budget

Removal of subsidy

Signing of power with Germany to provide 12000MGW
If this improvement can be stable, available, affordable it will have ripple effect on supply chain across all sectors to improve productive capacity

Provisions of fossil fuel

Nigeria to conclude major repairs on old PH refineries 60,000lpd,
new PH
Warri
Kaduna

These refineries but these must be sold to a very competent global manager to avoid current politicization which gulps over N12trn over 8years yet were abandoned for many decades

We are now investing $1.5bn for turn around

Fuel prices need to come down remarkably
We do not want any importation
We should only have the cost of production + reasonable margin
Many are benchmarking oil prices by international standards this must be discarded
God has endowed us with a quantum of oil as natural resources, why are we suffering now with many Indus tries collapsing and life now hellish putting 63% in multidimensional poverty

ALSO READ  MEET MICHELLE WU FIRST FEMALE MAYOR OF BOSTON

National issues
PBAT must appoint a new Petroleum Minister for the purpose of transparency and accountability

On Security
FG must restructure this sector just like in the past where we have the following:
Nigerian police force
Western police force + same for other regions.
Community police strictly native

New government style

We must go back to a new administration that recognizes regions, states and local governments with separation and devolution of power

Resources control
We need to recognize where these resources are domicile
We shall have moritarium to pay all our debt
We need allocation of 5-10% to develop Mineral deposit across different states

Regional empowerment

The six regions must have thier respective constitution
They must be able to develop these infrastructure
Port operation
Prison
Power station
Airport
Rail service
Water ways

Conclusion
For us to have economic prosperity
PBAT must restructure, recalibrate and reposition
Set result oriented benchmarks based on
KPAs
KPIs
Balance score card with nationally acceptable metrics
PBAT must institute a value proposition
Merit
Pragmatism
Honest and
Accountability

rainsmediaradio https://rainsmediaradio.com

Media enthusiast and music lover on a journey to becoming a global media mogul. I am taking it a step at a time.

You May Also Like

More From Author