President Tinubu Begs Multi-Nationals Not to Quit Nigeria, But Concrete Steps Needed for Business Success
By: Al Humphrey Onyanabo
In recent times, Nigeria has witnessed the departure of multinational companies like GSK and P&G, a worrisome trend that threatens the future of the country’s economy. President Bola Ahmed Tinubu, in a meeting with a SHELL delegation, urged multinational corporations not to pull out of Nigeria. While his words may offer a glimmer of hope, it is imperative that he goes beyond mere promises and takes concrete actions to revitalize the business environment. In this article, we will explore the complexities surrounding Nigeria’s business landscape, highlight the key issues, and emphasize why tangible actions are needed for the sake of the country’s future.
Lingering Challenges:
One of the primary concerns for multinational companies in Nigeria is the delayed remittance of funds. President Tinubu promised to address the issue of overdue remittances to airlines, a critical problem that has not been resolved. This lack of action erodes trust and confidence in the government’s commitment to the business sector. To foster a conducive environment for business, it is crucial that the President fulfills his promises promptly.
Another major issue is the struggle to obtain foreign exchange. Companies are forced to resort to the black market to acquire the necessary currency to import raw materials. This not only increases costs but also exposes businesses to legal risks. President Tinubu must work towards the establishment of transparent and efficient foreign exchange mechanisms to provide necessary liquidity to businesses.
Additionally, the high cost of doing business in Nigeria poses a significant challenge. Multinational companies face exorbitant costs due to the need to generate their own power and comply with multiple tax requirements. These obstacles stifle growth and deter foreign investments. The President must implement measures to reduce the cost of electricity generation and streamline tax regulations to attract and retain multinational corporations.
The Way Forward:
To secure the future of Nigeria’s economy, President Tinubu must go beyond mere words and implement tangible solutions. Here are some key steps that can be taken:
1. Facilitate prompt remittances: The President should establish a mechanism for ensuring the timely remittance of funds to airlines and other businesses. This will build trust and confidence among multinational companies.
2. Enhance foreign exchange availability: The government should prioritize the establishment of a transparent and efficient foreign exchange system, ensuring adequate liquidity for businesses. This will reduce reliance on the black market and improve the ease of importing raw materials.
3. Streamline business costs: The President must work towards reducing the cost of doing business in Nigeria. This can be achieved through investing in reliable power infrastructure to reduce reliance on self-generated power and simplifying tax regulations to minimize the burden on businesses.
4. Engage in dialogue: President Tinubu should actively engage with multinational companies, industry experts, and stakeholders to gain firsthand insights into the challenges faced by businesses. This will enable him to make informed decisions and implement targeted solutions.
5. Encourage local partnerships: The government should promote collaboration between multinational companies and local businesses. This fosters knowledge transfer, enhances job creation, and strengthens the local economy.
The departure of multinational companies from Nigeria raises serious concerns about the future of the nation’s economy. President Bola Ahmed Tinubu’s call for multinational corporations to remain in Nigeria is a step in the right direction. However, it is imperative that he goes beyond mere words and takes concrete actions to address the challenges faced by businesses. By fulfilling promises, improving foreign exchange availability, reducing business costs, engaging in dialogue, and promoting local partnerships, President Tinubu can pave the way for a thriving business environment in Nigeria. The time for action is now, as the future of the country’s economy depends on it.
By; Al Humphrey Onyanabo ( the StoryTeller)
Tel; +2347054674906
Email; Nigeria360online@gmail.com
