Business & Economy News

GSK Exit from Nigeria: Shareholders Demand Compensation

Shareholders have demanded fair compensation for their investment, following the announced closure of operations of British pharmaceutical company, GlaxoSmithKline Consumer Nigeria Plc, in the country.

The Nigerian subsidiary of GSK in a statement signed by its Company Secretary, Frederick Ichekwai, on Thursday, revealed that it planned to stop doing business in the country, and move to a third-party distribution model for its drugs and consumer healthcare goods.

Speaking on the development, the Chairman Emeritus of the Independent Shareholders Association of Nigeria, Sunny Nwosu, faulted the government for creating an unfavourable business climate that was pushing out businesses.

He, however, demanded that Nigerian investors must be adequately compensated.

He said, “That is a global decision. They have done it in South Africa, East Africa, North Africa, but the point is, Nigeria’s government is owing most of them. I have been saying this if anyone imports dollars to do business in Nigeria, that company is eligible to repatriate its profits.

“All these things have been piling up for a very long time. They never bothered to say let’s do a budgetary allocation for their outstanding profits of companies participating in business in the country.

“They must pay adequate compensation to Nigerian investors, who kept the business going all these years. It is easy in and easy out. Once that is done, I believe Nigerian shareholders will be happy to say, ‘okay they are leaving, we are receiving good compensation.’ So they will invest somewhere else.”

Professor of Economics from the University of Kaduna, Seth Akutson, said, GSK’s exit would have an effect on unemployment in Nigeria and send a wrong signal to the international business community.

He said, “It will also send a wrong signal to the international community. The economy will be impacted. The cost of production, the cost of infrastructure, the economic climate, multiple taxation, and ease of doing business are not friendly. These are the things driving them away. So they will go to climates where they can do business.”

Related posts

VIDEO: Maltina Encourages Lagosians to Explore Water Transportation

Desmond Ekeh

Smirnoff Sparks Reconnections Inside the Big Brother Naija House through the ‘Smirnoff We Do We’ Challenge

Precious Chinaza

Banks Offer Youths N2b Agric Loan At 5% Interest – CBN

Desmond Ekeh

Leave a Comment