Victor Ezeja
Labour Party Presidential candidate in the February 25 election, Mr Peter Obi, has reacted to the news of the exit of British multinational pharmaceutical and biotechnology company, GlaxoSmith Kline (GSK), from Nigeria.
Obi, who expressed sadness over the development, said that GSK’s decision to leave Nigeria will lead to the loss of jobs by over one thousand people and worsen Nigeria’s poverty index.
Join our WhatsApp ChannelPrime Business Africa reported that GSK Consumer Nigeria has announced its decision to shut down operations in the country and pay off its shareholders after receiving approvals from the Securities and Exchange Commission (SEC).
READ ALSO: How UK Drug Producer Forced GSK Nigeria To Shutdown Operations
The company in a statement sent to Nigerian Exchange Limited (NGX), disclosed that it was ceasing operations because GSK UK has terminated its vaccines and medicines distribution contract with the company and decided to adopt a third-party direct distribution model for its pharmaceutical products.
It said the board after weighing options, concluded that there is no alternative but to cease operations.
Reacting to that, Obi in a statement via his verified Twitter handle, said it is a reflection that the Nigerian environment is no longer conducive for business.
According to him, it is a consequence of the cumulative poor management of the economy.
He said: “Today, I was saddened to hear that GlaxoSmithKline (GSK), is exiting Nigeria after 51 years of operation. Their reason for leaving Nigeria is even more disheartening; they no longer perceive a prospect for the country as a business environment that would be anchored on productivity.
“We have painfully come to that point in our nation’s journey where multinationals are leaving the country and the local ones are closing down.
“These are some of the consequences of the cumulative poor management of our economy. As a result, millions are losing their jobs and our poverty index is worsening, even though we’re already being perceived as the world’s poverty capital.”
He noted that the multinationals that are leaving the country “have not only created jobs but have created immeasurable training that contributed immensely to our human capital development over the years. Now they are leaving our shores one after the other.
He added that “GSK which has a manufacturing facility in Agbara, Ogun State on over 25 hectares of land had directly employed over 400 highly technical workers like pharmacists, microbiologists, biochemists, chemists, dentists, doctors etc, and also employed over 1000 other staff.
“It indirectly provided jobs and business opportunities for thousands of Nigerians across the nation. They are now leaving all these behind, and pushing more people back into unemployment.”
The former Anambra State governor maintained that in reforming the country’s the economy there must be a shift from consumption to production, adding that doing so includes “encouraging and supporting local and foreign investments, like GSK, in the country.”
“The creation of an environment that creates and sustains multinationals to invest in our country is key to our dream of greatness.
“In the new Nigeria that we seek to create, the emphasis on production will encourage investors to stay and expand on our shores.
“Our people will keep their jobs and grow their prosperity,” he added
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
