Multinationals exit Nigeria as economic pressures reshape business landscape

A growing wave of multinational exits, divestments and business restructuring has reshaped Nigeria’s corporate landscape since President Bola Tinubu assumed office in May 2023, with several global companies either leaving the country or significantly reducing their local operations.

The decisions have been associated with a combination of foreign exchange constraints, naira volatility, high inflation, weakening consumer purchasing power and rising operating costs.

Among the companies affected are Equinor, Kimberly-Clark, Procter & Gamble (P&G), Binance, Shoprite, GlaxoSmithKline (GSK) and, most recently, Uber.

Equinor Completes Nigeria Exit

Norwegian energy giant Equinor, which had operated in Nigeria since 1992, announced in November 2023 that it would sell its Nigerian business to Chappal Energies.

The transaction was completed on December 6, 2024, following regulatory approvals, marking Equinor’s complete withdrawal from Nigeria after more than three decades.

The deal, valued at up to $1.2 billion, included an initial payment of $710 million and contingent payments. Equinor’s Nigerian assets included interests in OML 128 and the Agbami oil field.

Kimberly-Clark Shuts Manufacturing Operations

Kimberly-Clark, the US-based manufacturer of Huggies and Kotex, announced in May 2024 that it would leave Nigeria after nearly 15 years.

The company closed its Lagos manufacturing facility and commercial office and discontinued the local manufacture, marketing and sale of its products.

The decision came roughly two years after the company reopened a $100 million manufacturing plant in Lagos.

P&G Moves to Import-Only Model

Procter & Gamble announced in December 2023 that it would wind down its on-ground operations and adopt an import-only model.

The company, whose brands include Pampers, Always, Ariel, Oral-B and Gillette, cited the difficulty of operating as a dollar-denominated business amid Nigeria’s challenging macroeconomic conditions.

Unlike a full exit, P&G’s products remain available in Nigeria through imports.

Binance Ends Naira Services

Cryptocurrency exchange Binance discontinued its Nigerian naira services in March 2024 following increased regulatory scrutiny.

The platform stopped accepting naira deposits, ended naira withdrawals and removed naira trading pairs, although other Binance services remained available to Nigerian users.

Shoprite Completes Exit

Shoprite’s Nigerian operations also came to an end in March 2026 after nearly two decades.

The South African retailer had sold its 25 Nigerian outlets to Ketron Investment Limited in 2021, transitioning from direct ownership to a franchise arrangement.

However, the locally operated stores struggled amid rising operating expenses and declining consumer purchasing power, eventually leading to the closure of the remaining outlets.

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GSK Shifts to Third-Party Distribution

GlaxoSmithKline announced in August 2023 that it would stop selling its pharmaceutical products directly in Nigeria and transition to a third-party distribution model.

The company attributed the restructuring partly to operational challenges, including foreign exchange difficulties and rising costs.

Uber Announces Nigeria Exit

Ride-hailing giant Uber announced on September 2, 2026 that it would cease its ride-hailing operations in Nigeria after 12 years.

The company, which launched in Lagos in 2014 before expanding to other cities, said the decision followed a review of its operations but did not give a specific reason for the withdrawal.

The exit comes amid rising fuel and operating costs, inflation and currency volatility in Nigeria’s transport sector.

Uber also said its decision was unrelated to a recent directive by the Federal Airports Authority of Nigeria concerning e-hailing operations at Nigerian airports.

The succession of exits and restructuring decisions has intensified debate over Nigeria’s business environment and the impact of recent economic reforms.

Analysts have argued that the trend highlights the challenges facing businesses dependent on imported inputs, foreign exchange and domestic consumer spending.

However, the divestments have also created opportunities for Nigerian investors and companies to acquire assets previously controlled by multinational corporations, as demonstrated by Chappal Energies’ acquisition of Equinor’s Nigerian business.