Reps probe closure of local firms, multinationals’ exit

The House of Representatives has called for a thorough investigation into the closure of some local companies and departure of multinational organisations and factors militating against the ease of doing business in Nigeria. The resolution was made following the adoption of a motion by Dr Patrick Umoh, co-sponsored by Hons Paul Ekpo and Lukman Mudashiru. While presenting the motion, the lawmakers said that in the past seven years, several manufacturing companies, especially those in the fast moving goods industries, have either left Nigeria or stopped production. They said companies like Surest Foam Limited, Mufex, Framan Industries, MZM continental, Nipol Industries, Jubilee Syringe, among top pharmaceutical companies have all exited the country due to Nigeria’s operational environment.

According to the lawmakers, the departure of these multinational companies is creating serious concern as it affects the country’s GDP; hinder economic growth, increase unemployment, and poverty, decreased government revenues and investor’s confidence in the capital market. Adopting the motion, the House urged its Committee on Industry, Labour, Employment, and Productivity to investigate the closure of local companies and departure of multinational companies from Nigeria and factors affecting against ease of doing business in Nigeria and report back to the House in four weeks. The House also called on the executive to prioritise investment in infrastructure and power sectors, providing tax incentives to encourage businesses and investors to invest in Nigeria.