Multinationals May Exit Nigeria in 2024 Amid Economic Environment- Report

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A recent report by financial solutions firm Cardinal Stone suggests that multinational firms in the Fast Moving Consumer Goods (FMCG) subsector may consider exiting the country in 2024 if the operating environment doesn’t see improvement.

The report titled ‘Strategic Resilience: Sailing Through Business Disruptions,’ emphasized that high operating costs are expected to persist for FMCG firms, making the sector vulnerable to changes in commodity prices, exchange rates, import duties, and freight costs.

The FMCG sector, according to the report, may not benefit from the moderation in global commodity prices due to the significant depreciation of the naira. The report highlights the challenges faced by companies in the sector, urging them to reimagine operational strategies for cost efficiency in 2024.

The report also cautions that if improvements are not realized, multinational firms might resort to drastic measures such as exiting the operating environment.

Source: PUNCH

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