Another Multinational Company Plans Exit from Nigeria

Swiss cement giant Holcim has announced plans to exit the Nigerian market, citing challenging economic conditions under the administration of President Bola Tinubu. The decision was reported by The People’s Gazette.
Holcim’s planned withdrawal comes amid persistent economic issues, including high inflation, currency instability, and rising operational costs, which have significantly impacted the business environment in the country.
The company has reportedly been reassessing its strategies in Nigeria, one of Africa’s largest construction markets, but ultimately found the prevailing conditions unsustainable.
Holcim announced the sale of its 84% stake in Lafarge Africa (WAPCO.LG) to China’s Huaxin Cement for $1 billion, as reported by Reuters. The deal, which marks Holcim’s exit from Nigeria, is expected to be finalized by 2025, pending regulatory approvals.
The transaction is seen as part of Holcim’s broader strategy to pivot towards markets with stronger economic prospects, while Huaxin Cement is expected to bolster its footprint in Africa through this acquisition.
The sale has raised questions about Nigeria’s ability to retain foreign investors amid persistent economic challenges, signaling potential ripple effects for the construction and manufacturing sectors. Regulatory bodies in Nigeria are yet to comment on the transaction.
Several other multinationals have also reduced or ceased operations in Nigeria recently. Notably, GlaxoSmithKline (GSK) exited in 2023, while Procter & Gamble (P&G) and Sanofi shifted to third-party distribution models. Norwegian energy firm Equinor sold its stakes in Nigerian oil fields, citing a difficult business environment. Retailers like Shoprite and The Game, alongside service providers like Jumia Food and Bolt Food, have scaled back significantly