The decision by GlaxoSmithKline Nigeria to shut down its operations in the country after over five decades is as a result of the adverse effects of the economy on many multinational firms in recent years. The view of the Lagos Chamber of Commerce and Industry (LCCI) was presented in a press statement signed by the Director General, Dr Chinyere Almona, FCA.
Despite presenting international businesses with the largest market in the continent, the nation still suffers from worrying economic slow-down decisions like this, which are often provoked by the rising cost of doing business, exposed by the epileptic power supply, and weak infrastructural backing, amongst others.
With justification, the Chamber is concerned that if the trend persists, the nation’s economic growth potential will not be realized. GlaxoSmithKline’s decision critically reflects on the nation’s poor ranking on the ease of doing business measures, which the Chamber has constantly spoken about. It is time the government took appropriate actions to reverse the saddening trends in the business clime in Africa’s largest market.
Factor cost, as an integral element of the profit equation, is viewed with utmost seriousness by businesspeople. In the face of rising costs, businesspeople will likely search for cost-friendlier locations. The Chamber is inclined to suggest the government take a holistic view/ review of the business environment and take steps to make the nation’s business clime more competitive for growth.
