Nigeria is playing a dangerous game with its biggest employers and investors. Companies like MTN Nigeria, Airtel Nigeria, and even businesses founded by notable Nigerians like Mike Adenuga’s Glo and Dangote Refinery, which all together employ over 1.5 million Nigerians directly and indirectly, are facing constant harassment from regulators and highly placed individuals within the government.
Take MTN Nigeria and Airtel Nigeria for example, these telecom giants alone faced over ₦1 trillion in regulatory demands last year, while MultiChoice has battled multiple regulatory showdowns over the same issues.
It’s like being punished twice for doing business and it seems like these companies have had enough.
If these major corporations decide to leave Nigeria, and even the Nigerian owned businesses decide to exit their home country and focus on other countries, the impact would be catastrophic.
Let’s break it down: MTN Nigeria contributes about 4.5% to Nigeria’s GDP, and Dangote Refinery is projected to add $21 billion to Nigeria’s GDP annually. Together with BAT Nigeria and Airtel Nigeria, these companies make up at least 10% of our formal employment sector.
That’s not just statistics, it’s real people.
We’re talking about your neighbor who sells MTN recharge cards at Nkoplu bus stop in Port Harcourt, your cousin who just started working at Dangote Refinery, your friend who’s a mid level manager at BAT Nigeria, or that funny guy you meet occasionally at the barbershop in Ojodu Berger that drives one of the Glo Ogas.
But the damage goes deeper. When industry leaders like Dangote Refinery or MultiChoice face constant regulatory battles that bleed them in the Nigerian market thanks to various macroeconomic issues, long-running attacks and de-marketing by various regulatory bodies, politicians and misinformed citizens, it scares away other investors. Nigeria’s foreign direct investment for Q2- 2024 dropped to $29.83 million (65% decline compared to Q2- 2023).
Think about it: if you hear that BAT Nigeria, after 110 years in Nigeria, is struggling with multiple regulatory agencies, would you invest here? Global investors are watching as our largest telecommunications companies continue to battle through one regulatory crisis after another. Each time MultiChoice or Airtel Nigeria makes headlines for regulatory disputes, we lose potential investments worth billions of dollars.
Do we want to follow the path of countries where corporate harassment led to economic collapse? Or should we learn from business-friendly African nations that are attracting the same companies we’re pushing away? The consequences – will affect every Nigerian, from the street vendor selling DStv subscriptions to the thousands employed in Dangote’s supply chain.
