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- Johnson & Johnson is set to shut down its Nigerian operations due to worsening economic conditions, including forex scarcity and high production costs
- The exit follows a major downsizing of its workforce and the earlier withdrawal of its Consumer Healthcare division in 2022
- Industry experts warn that J&J’s departure signals broader challenges for multinationals in Nigeria and could disrupt access to critical medicines
Legit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology, Banking and the Economy.
Global healthcare giant Johnson & Johnson Innovative Medicines (J&J) is set to wind down its operations in Nigeria, highlighting the worsening difficulties multinational firms face in Africa’s largest economy.
According to information shared with members of the Commerce and Industry Correspondents Association of Nigeria (CICAN), the company’s decision stems from Nigeria’s harsh economic realities, including rising inflation, foreign exchange shortages, escalating production costs, and unstable government policies.
Source: UGC
J&J exit may threaten access to vital medicines
According to The SUN, a source familiar with the matter, who requested anonymity, disclosed that J&J has long supplied essential medical and pharmaceutical products to Nigeria but can no longer sustain operations under the prevailing business climate.
The source added that the company had already scaled down its workforce by about 20% over the past year, while its Consumer Healthcare division had quietly exited the country in 2022.
The source stressed:
“This development goes beyond a single company. If a global leader in healthcare like Johnson & Johnson finds it impossible to continue in Nigeria, it sends a very troubling message to foreign investors.”
J&J’s withdrawal is expected to create a noticeable vacuum in the country’s healthcare sector, particularly in areas such as oncology, immunology, and mental health, where its products play a crucial role.
Recall that Legit.ng had earlier reported that Dr. Segun Omisakin, Chief Economist and Director of Research at The Nigerian Economic Summit Group (NESG), had disclosed that business closures and multinational divestments cost Nigeria N94 trillion.
Reacting to the situation, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Sola Obadimu, told Saturday New Telegraph that Nigerian businesses are enduring one of their toughest periods in recent history.
Obadimu said:
“Businesses are going through a period of downturn. If you check the audited reports of most multinational companies for last year (2024), they ran massive losses, some of them are contemplating leaving Nigeria, which of course, you know this.”
He further noted that inflation, foreign exchange instability, multiple taxation, energy challenges, difficulty in repatriating profits, and a generally hostile operating environment are pushing companies to the brink of survival.
Multinationals’ Exodus from Nigeria
Johnson & Johnson’s exit adds to a growing list of multinational corporations that have abandoned the Nigerian market in recent years.
Several multinational firms have recently exited or reduced their operations in Nigeria, citing the country’s difficult business climate.
In 2023, American consumer goods giant Procter & Gamble announced its exit, just seven years after investing $300 million in a manufacturing facility in the country.
In August of the following year, British pharmaceutical company GlaxoSmithKline (GSK) disclosed plans to wind down its Nigerian operations and delist from the Nigerian Exchange.
Similarly, French drugmaker Sanofi-Aventis decided to end its direct presence in Nigeria and shift to a third-party distribution model beginning in 2024.
Unilever has also scaled back parts of its production activities, further underscoring the struggles faced by foreign investors in Africa’s largest economy.
These exits have not only disrupted supply chains but also worsened unemployment and eroded investor confidence.
Analysts argue that the departure of such established global brands reflects deeper structural issues in Nigeria’s economy.
Unless urgent reforms are implemented to stabilise the macroeconomic environment, restore investor trust, and ease regulatory bottlenecks, the trend of multinational withdrawals could accelerate, further straining Nigeria’s economy and access to vital goods and services.
FG explains reasons for oil multinationals’ exit
Meanwhile, Legit.ng had reported that the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, attributed the departure of several multinational firms from Nigeria to the dominance of middlemen in the system.
According to him, the involvement of intermediaries has created severe difficulties for foreign companies, particularly in the oil and gas sector, making operations unsustainable.
He stressed that permitting middlemen to infiltrate the sector was a fundamental mistake that has continued to undermine the business environment for global investors.
Source: Legit.ng
