African Democratic Congress (ADC) has said the exit of global ride-hailing company Uber from Nigeria, alongside the shutdown or scaling down of operations by several major companies, reflects growing concerns over the country’s business operating environment.
The party, in a statement issued on Thursday by its National Publicity Secretary, Mallam Bolaji Abdullahi, said the development exposed a gap between government claims of economic progress and the realities confronting businesses and citizens.
The ADC noted that while the Federal Government had celebrated a marginal 0.2 percentage-point improvement in Gross Domestic Product, GDP, many businesses continued to face mounting operational challenges, while households struggled with rising living costs.
“Certainly, a 0.2% growth does not reflect the economic pressure that Nigerians are experiencing,” the party said, adding that poverty remained a major concern, with an estimated 140 million Nigerians affected.
The opposition party challenged the government to explain how the reported GDP growth had translated into tangible improvements in the lives of Nigerians, including workers, businesses grappling with high energy costs and families facing rising household expenses.
“When the President and his party say things are getting better, we expect them to tell us what has improved in the lives of Nigerians. They should tell us how much food their GDP growth has put on the tables. They should tell us which bill it has paid,” the party stated.
The ADC said Uber’s exit from Nigeria after 12 years was an indication of the difficulties confronting businesses in the country, particularly rising energy and transportation costs following the removal of fuel subsidy and the devaluation of the naira.
“This is precisely why the ADC Presidential Candidate, Alhaji Atiku Abubakar, has proposed the restoration of a targeted fuel subsidy to bring down the cost of fuel, transportation and production,” the party said.
It also cited a report by the Manufacturers Association of Nigeria which, according to the party, indicated that 767 manufacturing companies had shut down or ceased operations, while hundreds more had become distressed since May 2024.
The party also listed Microsoft, Jumia Food, Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among companies it said had either shut down or scaled back operations in Nigeria.
“Therefore, when the President announces that Nigeria has turned the corner, we ask which indicators support that position. If there is confidence in the economy, why are businesses closing shop and moving elsewhere?” the ADC asked.
The party cited GlaxoSmithKline as an example, saying the pharmaceutical company shut down its manufacturing operations in Nigeria after 50 years.
According to the ADC, every major business exit or downsizing has implications for employment, household income and economic activity.
“When the APC and its government celebrate even the most negligible shift in GDP numbers as evidence that things are getting better, it contrasts with the reality that many Nigerians are experiencing increased cost of living.
“Those who had jobs yesterday are not sure how long it will take before their employers close shop, and those earning salaries are struggling even to transport themselves to work,” the statement added.
The ADC reiterated that its presidential candidate’s proposal to subsidise fuel production costs would help reduce the cost of living, improve business profitability and create jobs across sectors.
Credit: Nigerian Tribune