GSK, Multinational Companies Leaving Nigeria – Peter Obi Gives Reasons, Effects And Solution

Peter Obi, the 2023 Presidential candidate of the Labour Party (LP) has revealed that the exit of multinational company in Nigeria is a consequence of the cumulative poor management of the country’s economy.

VerseNews Nigeria reports that Obi said this in a statement on Friday while regretting to announce the exit of GlaxoSmithKline (GSK) Consumer Nigeria PLC after operating in the country for 51 years.

This Online News Media reported that in a statement, the multinational company, whose primary activities include marketing and distribution of consumer healthcare and pharmaceutical products, said that its parent company, GSK Plc UK, had revealed its intent to cease commercialization of its prescription medicines and vaccines through its Nigerian subsidiary.

Part of the statement read, “In our published Q2 results, we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.”

The company said it will be briefing its employees, whom it promised to “Treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements”.

“Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on the next steps and we will be shortly submitting to the Securities and Exchange Commission, a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital,” it further stated.

Reacting to the development, Obi said; “Today, I was saddened to hear that GlaxoSmithKline (GSK), is exiting Nigeria after 51 years of operation. Their reason for leaving Nigeria is even more disheartening; they no longer perceive a prospect for the country as a business environment that would be anchored on productivity.”

“We have painfully come to that point in our nation’s journey where multinationals are leaving the country and the local ones are closing down. These are some of the consequences of the cumulative poor management of our economy.”

The former Anambra Governor further analyzed the consequences of such economy set back on the citizens which according to him will worsen the country’s poverty index.

DON’T MISS: Bolt, Uber Drivers To Abandon Firms Amid Hike In Fuel

He continued; “As a result, millions are losing their jobs and our poverty index is worsening, even though we’re already being perceived as the world’s poverty capital. The multinationals that are leaving our country have not only created jobs but have created immeasurable training that contributed immensely to our human capital development over the years.”

“Now they are leaving our shores one after the other. GSK which has a manufacturing facility in Agbara, Ogun State on over 25 hectares of land had directly employed over 400 highly technical workers like pharmacists, microbiologists, biochemists, chemists, dentists, doctors etc, and also employed over 1000 other staff. It indirectly provided jobs and business opportunities for thousands of Nigerians across the nation.”

Obi maintained that to turn Nigeria’s economy around, it must be moved from consumption to production which will encourage both foreign and local investors.

“They are now leaving all these behind, and pushing more people back into unemployment. I have consistently maintained that in turning our nation around, we must move the economy from consumption to production, part of which included encouraging and supporting local and foreign investments, like GSK, in the country.”

“The creation of an environment that creates and sustains multinationals to invest in our country is key to our dream of greatness. In the new Nigeria that we seek to create, the emphasis on production will encourage investors to stay and expand on our shores,” Obi added