GlaxoSmithKline’s Exit, Bad Omen For Nigeria’s Business Environment, Atiku, Obi Lament

Major Opposition Leaders in Nigeria have lamented the planned exit of British pharmaceutical giant, GlaxoSmithKline (GSK), from Nigeria after more than five decades of operation, saying the development was a sign that all is not well with the country’s business environment.

Consequently, former Vice President and Peoples Democratic Party (PDP) presidential candidate, Atiku Abubakar, opined that Nigeria must revamp its infrastructure, endeavour to enthrone a sustainable regime of energy security and retool its fiscal and monetary policy in order to change the narrative.

Also, international trader and Nigeria’s Labour Party (LP) presidential candidate, Peter Obi, bemoaned the decision of GSK to leave Nigeria after 51 years of operation, describing the situation as a sad one.

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Both opposition figures reacted to the development on their various verified social media handles at the weekend.

Obi, who took to his verified Twitter handle to react to the news Friday evening, said GSK’s reason to quit was even more disturbing as they no longer perceive a prospect for the country as a business environment that would be anchored on.

Former VP Atiku wrote: “The planned exit of GlaxoSmithKline (GSK) from Nigeria after more than five decades of doing business in Nigeria underscores how horrific the environment has become for both local and foreign businesses. Sadly, many international firms have, in recent times, sold their assets and bid farewell to Nigeria after several years of operating in our country.

“These exits have led to further loss of jobs in an environment that is already bleeding jobs. We need to do a lot more not only to encourage investors to make Nigeria their preferred destination but also to encourage companies already operating in our land not to “japa.” To this end, we must revamp our infrastructure, endeavour to enthrone a sustainable regime of energy security and retool our fiscal and monetary policy. -AA.”

For his part, the LP presidential candidate wrote: “Today, I was saddened to hear that GlaxoSmithKline (GSK), is exiting Nigeria after 51 years of operation. Their reason for leaving Nigeria is even more disheartening; they no longer perceive a prospect for the country as a business environment that would be anchored on.”

LEADERSHIP reports that GlaxoSmithKline Consumer Nigeria Plc had announced plans to shut down its operations in the country.

In a statement on Friday, the multinational company, whose primary activities include marketing and distribution of consumer healthcare and pharmaceutical products, said that its parent company, GSK Plc UK, had revealed its intent to cease commercialization of its prescription medicines and vaccines through its Nigerian subsidiary.

Part of the statement stated, “In our published Q2 results, we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.”

The company said it will be briefing its employees, whom it promised to “Treat fairly, respectfully and with care, meeting all applicable legal and consultation requirements”.

“Board is conscious that shareholders will have many questions; we have been working assiduously with our professional advisors to agree on the next steps and we will be shortly submitting to the Securities and Exchange Commission, a draft Scheme of Arrangement which may, if approved, see shareholders other than GSK UK, receive an accelerated cash distribution and return of capital,” it further stated.