Why Multinationals Are Scaling Back or Leaving Nigeria Despite Better Economic Data

Financial analysts say multinational firms are continuing to scale back, divest or exit Nigeria because operating conditions remain difficult despite improving headline economic indicators. Uber’s announced exit adds to a growing list of companies that have reduced their Nigerian operations since 2023. Analysts point to high energy and financing costs, exchange-rate risks, weak consumer purchasing power, infrastructure gaps, insecurity and regulatory uncertainty. They argue that these pressures have eroded expected profits for firms drawn to Nigeria’s large consumer market. Nigeria recorded 4.43 per cent GDP growth in the second quarter of 2026, while inflation eased to 15.43 per cent in July. However, experts say the real measure of economic reform is whether businesses can expand, attract investment and create jobs. They add that not every corporate exit is directly caused by local conditions. Uber’s departure, for instance, is also linked to its wider global restructuring and strategic priorities.

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