The growing number of multinational companies scaling down or ending their operations in Nigeria has raised fresh concerns over the country’s business environment, as analysts identify high operating expenses, weak consumer purchasing power and regulatory uncertainty among the challenges confronting businesses.
Uber, the global e-hailing company, became the latest major firm to announce its departure from Nigeria on Wednesday, September 2, 2026.
The company’s exit comes amid a wider trend that has seen several multinational firms either leave the Nigerian market, sell parts of their businesses or reduce their operations since 2023.
Companies that have scaled back or discontinued some of their activities in Nigeria in recent years include Unilever Nigeria Plc, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, Shoprite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, Bolt Food and Jumia Food Nigeria.
Between January and October 2024, several other major companies also exited the market or reduced local production as they faced increasing pressure from the operating environment.
They included Microsoft Nigeria, TotalEnergies Nigeria, PZ Cussons Nigeria Plc, Kimberly-Clark Nigeria and Diageo Plc.
Some other companies have opted for restructuring rather than a complete exit. Heineken/Champion Breweries sold a majority stake to EnjoyCorp, while Bolt Food ended its food delivery operations. Pick n Pay also sold its 51 per cent stake and withdrew from Nigeria’s retail sector.
Netflix similarly stopped commissioning Nigerian original productions, raising concerns about the attractiveness of the Nigerian market to international investors.
When companies that exited or substantially reduced their presence are traced back to 2020, the number is approaching 75.
Although some multinational exits are influenced by factors unrelated to Nigeria, analysts argue that the wider trend reflects persistent difficulties within the country’s business environment.
This is happening despite recent improvements in some macroeconomic indicators. Nigeria’s Gross Domestic Product expanded by 4.43 per cent in real terms in the second quarter of 2026, while inflation fell to 15.43 per cent in July.
The naira has also maintained relative stability following the liberalisation of the foreign exchange market in 2023, trading at N1,320.56 to the dollar on Monday, September 7, 2026.
However, analysts say improvements in macroeconomic figures have not necessarily translated into better conditions for businesses and consumers.
Reacting to the development, financial expert and Professor of Accounting at Lead City University, Godwin Oyedokun, said the continued departure or downsizing of multinational companies should concern the government and policymakers.
He, however, warned against attributing Uber’s exit solely to the Tinubu administration, noting that the company’s decision was also connected to its international restructuring and business strategy.
“The continued exit or retrenchment of multinational companies from Nigeria, including Uber, should concern policymakers, although it would be wrong to attribute every corporate exit directly to the Tinubu administration. Uber’s decision also reflects its global restructuring and strategic shift.”
Oyedokun said the trend demonstrates the difference between improving macroeconomic statistics and the conditions businesses face daily.
“However, the broader pattern highlights an important contradiction in Nigeria’s economy: macroeconomic indicators may be improving, while the microeconomic environment remains challenging. GDP growth, improved foreign reserves and moderating inflation are positive developments, but businesses still face high energy and financing costs, exchange-rate risks, weak consumer purchasing power and regulatory uncertainties.
“The real test of President Tinubu’s reforms is therefore not only whether the macroeconomic statistics look better, but whether businesses are investing, expanding and creating jobs. Nigeria must now move from macroeconomic stabilisation to genuine economic competitiveness. Good statistics are important, but they must ultimately translate into stronger businesses, more investment, jobs and improved living standards for Nigerians,” he told DAILY POST.
Meanwhile, the CEO of SD & D Capital Management, Gbolade Idakolo, said multinational companies were initially drawn to Nigeria largely because of its huge population and the potential for profitable business opportunities.
According to him, rising operating costs and declining purchasing power have significantly reduced the expected returns for many of these companies.
“The Nigerian economy under the Tinubu administration has been improving; at least some key indices have turned positive. However, the business environment remains hostile because most of the government’s reforms have not translated to real-time economic reprieve for businesses and Nigerians as a whole.
“The cost of doing business in Nigeria is still very high, with infrastructural gaps yet to be filled, coupled with security challenges.
“Most of these multinationals were attracted by the population of the country and believed that if they could get a share of the business in their sector, it would definitely be profitable. The projected profits have been eroded by the reduction in the purchasing power of Nigerians, which can be attributed partly to the higher exchange rate and inflation.
“The businesses also battle with high operating expenses, which are caused by the high cost of energy. Most of these companies that still remain in the country have either downsized or sold part of their business.
“Those that cannot withstand the economic realities in the country have exited the country and moved their operations elsewhere,” he told DAILY POST.
