Nigeria’s minister in charge of Industry, Trade, and Investment has revealed that African countries, including Ghana, are lobbying companies operating in the country to leave the country and relocate to them.
Niyi Adebayo made the disclosure when he appeared before the House of Representatives Committee on Public Accounts to answer queries from the Auditor General of the country.
Some companies previously operating in Nigeria are known to have relocated to Ghana, one of them being Dunlop, the tyre producer. Such a move was said to have been prompted by the challenging operating environment in Nigeria.
Adebayo told the Committee that the countries lobbying the companies to relocate had raised the capital allowances of the companies, and pointed out that companies still operating in Nigeria are only doing so because of the size of the country. He said the government was making efforts to support investments in the country.
“Our duty is to support investment growth in Nigeria. It is public knowledge that getting these investments is increasingly becoming difficult today,” the minister said.
Nigeria currently faces challenges in its economic environment. Companies face rising operating costs occasioned by decrepit infrastructure, including an epileptic power supply, a shortage of diesel to power industrial plants, and high price of aviation fuel that has led to increased airfares.
The country’s manufacturers have warned that the country faces the risk of job cuts and reduced output unless these challenges are tackled quickly.
