GSK is leaving Nigeria and the effect of this news is evident already. Prices of drugs have skyrocketed and there are news that more companies will leave soon. It’s difficult to pinpoint the cause of this decision as there are many factors that can lead to such a decision
So far, the economy has not been favorable for foreign investors mainly because of the fluctuations is exchange rates and the near crippling inflation. If the company isn’t making profit of breaking even, then leaving is probably the best line if action.
Another reason I think they are leaving may be because of low sales as compared to when they had monopoly of the pharmaceutical market in the country. Thats not the case anymore as people are looking for more cost effective ways to survive. There are drugs coming in from china and India with lesser prices than GSK.
While prices have skyrocketed, this is an opportunity for credible pharmaceuticals to actively promote their products as theres a market share up for grabs. My concern though is for the hundreds of Nigerians that will be losing their jobs as a result of this situation.
On the flip side, more Nigerian companies are emerging so this can be good for the economy in the long run. We have been a consumer country for eons and it is time we take natters seriously and begin to develop our country. Of course there will be a lot of adjustments eventually. I remember how rice importation was banned and a lot of Nigerians complained that they do not eat our locally farmed rice because they had a lot of stones in them. Fast forward to years later, Nigerian rice is being sold across the country without stones and tastes very nice too. Many have even forgotten how foreign rice tastes. Whatever the reason for this exit, I hope it is for the best.
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