Global healthcare giant Johnson & Johnson Innovative Medicines is planning to shut down its operations in Nigeria due to the country’s worsening economic climate.
The decision is attributed to soaring inflation, foreign exchange scarcity, rising production costs, and unpredictable government policies, which have made operations unsustainable.
The company’s departure is expected to leave a significant gap in the healthcare supply chain, potentially limiting Nigerians’ access to essential medicines in Oncology, Immunology, and Mental Health spaces.
Johnson & Johnson Innovative Medicines has been a vital supplier of pharmaceutical and medical products to the Nigerian market.
In the past year, the company has reduced its staff strength to about 20%, a significant shrinkage.
This is not the first time Johnson & Johnson has scaled down its operations in Nigeria; its Consumer Healthcare arm quietly exited the country in 2022.
The exit of Johnson & Johnson Innovative Medicines sends a worrying signal to other global investors, underscoring the deepening struggles of multinational companies in Nigeria.
The company’s departure highlights the challenges faced by businesses in the country, including:
Rising costs of production and living, foreign exchange challenges – scarcity and volatility, high tax burdens on businesses and persistent power supply issues.
This development is likely to further strain Nigeria’s economy and deter potential investors.
The Nigerian government faces pressure to address these economic challenges and create a more favorable business environment to prevent further exits and attract new investments.
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