GlaxoSmithKline Exit: It is Time the Govt Took Appropriate Actions to Reverse the Saddening Trends -LCCI
The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to provide enabling environment for businesses to thrive to prevent more companies from exiting the country or indigenous companies from shutting down operations.
The chamber gave the charge based on the recent GlaxoSmithKline (GSK) announcement of it’s exit from Nigeria. The company is considering a third-party distribution model for its drugs and consumer healthcare goods.
in a statement signed by the Director-General, LCCI, Dr Chinyere Almona and made available to Brand Times, it stated that the decision of GlaxoSmithKline to shut down its operations in the country after over five decades is one of the many multinational firms have had to make in recent years with their adverse effects on the economy.
It pointed out that “Despite presenting international businesses with the largest market in the continent, the nation still suffers from worrying economic slow-down decisions like this, which are often provoked by the rising cost of doing business, exposed by the epileptic power supply, and weak infrastructural backing, amongst others.
“With justification, the Chamber is concerned that if the trend persists, the nation’s economic growth potential will not be realized. GlaxoSmithKline’s decision critically reflects on the nation’s poor ranking on the ease of business measures, which the Chamber has constantly spoken about. It is time the government took appropriate actions to reverse the saddening trends in the business clime in Africa’s largest market.”
It added that “Factor cost, as an integral element of the profit equation, is viewed with utmost seriousness by businesspeople. In the face of rising costs, businesspeople will likely search for cost-friendlier locations.”
It tasked the government to put measures in place to help businesses grow. “The Chamber is inclined to suggest the government take a holistic view/ review of the business environment and take steps to make the nation’s business clime more competitive for growth.”