Nigeria’s external reserves have risen by $54 billion to a new epoch, but the celebration is being tempered by a wave of exits.
Specifically, the reserves have crossed the $54 billion mark for the first time since December 2008, reaching $54.08 billion as of September 3, 2026.
However, several international companies, including Uber, P &G, GSK, Shoprite, among others, have had to either completely withdrawn their services from the Nigerian market, stopped local manufacturing, transferred distribution to third parties or sold specific businesses and retained a presence in the country in the past three years.
Analysts say the same economic policies driving the reserve growth — subsidy removal and foreign exchange reforms, have forced several multinationals including Uber, P&G, GSK, Shoprite, Binance, Equinor and Kimberly-Clark to either quit, scale down, or transfer operations over the past 36 months.
Metrobusinessnews.com (MBN) review shows that in the past three years, the firms were forced to take these measures, citing naira volatility, inflation, weak purchasing power and rising operating costs triggered by subsidy removal and FX reforms.
P&G for instance, stopped manufacturing and moved to importation. GSK sold its business. Shoprite sold to a local franchisee. Uber scaled back. Binance faced regulatory issues. Equinor sold assets. Kimberly-Clark exited manufacturing.
The analysts express doubts over the fundamentals of the economy noting that the rising reserves was ocassioned, majorly by higher oil receipts as well as remittances.
Also, the reforms by the Central Bank, (CBN) were directed at bringing in portfolio investments which have not translated to the much desired Foreign Direct Investments, (FDI) for inclusive growth.
“The challenge for government now is how to turn reserve strength into business confidence.”, says Friday Ameh, Lagos based energy analyst.
“Although the reforms were necessary for macro stability, the short-term pain of naira devaluation, 30%+ inflation, and weak consumer spending made Nigeria unprofitable for many consumer and service firms.” says an analyst in the food and beverage manufacturing sector.
According to an investment banker, Nigeria’s external reserves have risen by $54 billion to a new epoch, but the celebration is being tempered by a wave of exits. The issues are that policies targeted mainly at foreign investments either through high yields on fixed instruments or higher interest rates, would eventually be detrimental to local investors and banks.
According to him, it is an irony of faith that some of the policies driving the reserve growth have forced several local companies as well as multinationals into extinction, adding, “despite Nigeria recording a $54 billion rise in external reserves, investor confidence among local and multinational companies is still very low.”
Some analysts have said that this trend exposes the pitfalls of Tinubu’s economic policies, despite the hyped successes of the reforms.
According to them, the departures and scaling down of operations of these companies point to a challenging operating environment for multinational companies, particularly those dependent on imported inputs, foreign exchange and local consumer spending.
For manufacturers, naira depreciation and higher production costs have made local production more expensive, while weaker household purchasing power has constrained demand.
However, they added that local firms have yet to effectively replace the exited ones in the areas of quality and standards.
Exited Companies
Uber became the latest major multinational to announce ceasing of its ride-hailing operations and departure from Nigeria in September, 2026
Citing review of its business operations, without specific reasons, although it did not provide a specific reason, Uber launched in Lagos in 2014 before expanding to other Nigerian cities. said its decision was icassioned by sing The company said the rising operating costs, fuel expenses, inflation and currency volatility.
In 2021, South Africa’s Shoprite Holdings sold its 25 Nigerian outlets to Ketron Investment Limited, a subsidiary of Persianas Investment, marking a shift from direct ownership to a franchise model.
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However, the locally operated franchise struggled amid worsening macroeconomic conditions, including rising operating costs and declining consumer purchasing power. The challenges led to empty shelves and the closure of outlets in cities such as Ibadan and Ilorin, before the remaining stores were eventually shut down.
The closure brought an end to Shoprite’s nearly two-decade presence in Nigeria, which began in 2005, with the franchise exiting the Nigerian market completely by March 2026.
Also, Norwegian energy company, Equinor, operating since 1992, announced in November 2023 that it would sell its Nigerian business to Chappal Energies.
The transaction was completed on December 6, 2024, after receiving the required approvals, transferring all of Equinor’s Nigerian assets to the Nigerian-owned company.
Equinor said the deal marked its complete exit from Nigeria after more than 30 years in the country. Its assets included interests in OML 128 and the Agbami oil field.
The transaction was valued at up to $1.2 billion, comprising an initial purchase price of $710 million and contingent payments.
GlaxoSmithKline, GSK, announced in August 2023 that it would stop selling its pharmaceutical products directly in Nigeria and transition to a third-party distribution model.
The company cited operational difficulties, including challenges around foreign exchange and the cost of doing business.
Kimberly-Clark, the American manufacturer of Huggies and Kotex, announced in May 2024 that it would exit the country after almost 15 years.
The company said it would close its manufacturing facility and commercial office in Lagos and stop manufacturing, marketing and selling Huggies and Kotex products in the country.
It attributed the decision to changes in its global strategic priorities as well as economic developments in Nigeria.
The company’s departure came only about two years after it reopened a $100 million manufacturing facility in Lagos.
3. Procter & Gamble , P & G, announced in December 2023 that it would wind down its on-ground operations in Nigeria and move to an import-only business model.
The company, whose brands include Pampers, Always, Ariel, Oral-B and Gillette, cited the difficulty of operating as a dollar-denominated company in Nigeria and the broader macroeconomic environment.
With its products still in the Nigerian market, P&G is could be described as having exited local production rather than completely leaving Nigeria.
Cryptocurrency exchange, Binance, discontinued all Nigerian naira services in March 2024 following a regulatory confrontation with the Nigerian government.
The company stopped accepting naira deposits, ended naira withdrawals and delisted naira trading pairs. Remaining naira balances were converted to USDT.
The decision followed increased scrutiny of cryptocurrency exchanges by Nigerian authorities amid concerns over foreign exchange market manipulation and illicit financial flows.
Binance, however, clarified that the move did not mean Nigerian users were completely locked out of the platform. Other Binance services as other cryptocurrencies remained accessible.
