South African grocery retailer Pick n Pay has announced plans to exit Nigeria by selling its 51% share in a joint venture, marking another international business departing from the Nigerian market. According to CEO Sean Summers, this decision aligns with the company’s strategic restructuring beyond its South African home base. Pick n Pay entered Nigeria under five years ago through a partnership with A.G. Leventis (Nigeria) and currently operates two stores in the country, as reported by Reuters.

Pick n Pay’s exit reflects a broader trend, with multinational companies increasingly leaving Nigeria due to challenges in the business environment. In a significant recent departure, beverage giant Diageo sold its 58.02% stake in Guinness Nigeria to Tolaram Group in June 2024. Also this month, Nigerian President Bola Tinubu approved ExxonMobil’s share transfer to Seplat Energy.

Economists estimate that this wave of exits has cost Nigeria a staggering N94 trillion in economic output over the past five years, according to Dr. Vincent Nwani, former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry. The exodus began in earnest in 2020, with companies like Standard Biscuits Nigeria Ltd and Deli Foods Nigeria Ltd ceasing operations. Over the following years, the trend accelerated:

• In 2021, more than 20 companies exited, including Tower Aluminium Nigeria PLC and Framan Industries Ltd.
• By 2022, over 15 major brands, such as Universal Rubber Company Ltd, left the market.
• In 2023, notable exits included Unilever Nigeria PLC, GlaxoSmithKline Consumer Nigeria Ltd, and ShopRite Nigeria.
• In the first half of 2024 alone, five major players, including Microsoft Nigeria and Total Energies Nigeria, departed.
This wave of exits underscores the pressing need for economic reforms to stabilize Nigeria’s investment climate and retain foreign business interests.