Deloitte has revealed that multinational companies are exiting Nigeria and Ghana due to high inflation, currency instability, and dollar illiquidity, according to its 2025 outlook report.

The firm highlighted that Nigeria’s rising operational costs, exacerbated by inflation and the depreciation of the naira, contributed to the departure of several multinational firms, including Procter & Gamble, GSK, and Bolt Food. Deloitte noted that the illiquidity of the dollar and the volatility of the currency were also significant factors behind these exits.

In Ghana, economic challenges led to the departure of multiple firms, including Glovo, Nivea, Jumia Foods, and Bet 365, between 2023 and 2024. Companies such as Dark and Lovely cited the tough economic environment and rapid industry changes as reasons for their exit, while Jumia attributed its closure of food delivery services to unsustainable market conditions.

Despite some stability in the naira in the latter part of 2024, Deloitte warned that further multinational exits could occur if inflation and high-interest rates persist into 2025.

To cope with economic pressures, Deloitte suggested that companies in both countries may increasingly adopt strategies like sachetization to offer more affordable products. The firm also noted that localization strategies would likely be used to provide cheaper alternatives while minimizing costs.

Source:TheDotNews