Director General Lagos Chamber of Commerce and Industry Dr. Chinyere Almona has urged the government to undertake a comprehensive assessment of the overall business environment with the need to create a more competitive landscape that fosters growth.
According to a statement released by the Lagos Chamber of Commerce and Industry (LCCI) Dr. Almona described the decision of GlaxoSmithKline (GSK) to cease its operations in Nigeria after a presence spanning over five decades as one that has raised significant concerns she described the closure of GSK’s operations as part of a broader trend where several multinational corporations have chosen to discontinue their operations in Nigeria, causing detrimental effects on the economy.
The LCCI expressed its deep apprehension over the persistent nature of these trends, as they threaten the nation’s potential for economic growth. The decision by GlaxoSmithKline serves as a stark reflection of Nigeria’s unfavorable ranking in terms of ease of doing business, an issue that the Chamber has been vocal about in the past.
The LCCI contends that the time has come for the government to take proactive measures to reverse the downward trajectory of the business environment in Africa’s largest market.
The cost factor plays a pivotal role in the profitability equation for businesses. As costs continue to rise, entrepreneurs and business owners are likely to explore more cost-effective alternatives elsewhere. The
Despite being a hub for international businesses and possessing the largest market on the continent, Nigeria has been grappling with economic slowdown due to decisions such as these. The underlying factors contributing to these decisions include the escalating costs associated with doing business in the country, exacerbated by issues like inconsistent power supply and inadequate infrastructure.
The closure of GlaxoSmithKline’s operations serves as a wake-up call for the Nigerian government to address the pressing issues within the business climate. The statement by the Lagos Chamber of Commerce and Industry emphasizes the urgency of implementing strategic reforms to attract and retain multinational corporations, thus bolstering economic development and growth prospects for the nation.