Peter Obi blames Tinubu’s government poor economic management as Panadol manufacturer GSK ends operations in Nigeria after 51 years

The presidential candidate of the Labour Party (LP) in the 2023 general elections, Peter Obi, has blamed the proposed exit of the British pharmaceutical giant, GlaxoSmithKline (GSK) from Nigeria after 51 years on poor economic management by the President Bola Ahmed Tinubu-led Nigerian government.

In a statement sent to the Nigerian Exchange Limited, the multinational pharmaceutical company said it would transition to a third-party direct distribution model for its pharmaceutical products.

At the same time, the company said it is now working with its advisers to agree on the next steps, while it plans to submit a scheme of arrangements to the Securities and Exchange Commission for the possible return of cash to its local shareholders.

GlaxoSmithKiline was incorporated in Nigeria in June 1971 and commenced business the following year.

The multinational pharmaceutical company, initially known as Beecham at its incorporation, is well-known for products like Panadol, Ribena, Lucozade, Macleans, and Andrews Liver Salt, among other products.

Reacting to the development, the former governor of Anambra State who regretted the exit of the company said that the company’s reason for leaving Nigeria was disheartening as they no longer perceived a prospect for Nigeria as a business environment that would be anchored on productivity.

He said that Nigeria had painfully come to a point where multinationals were leaving the country and the local ones were closing down, describing it as consequences of cumulative poor management of the country’s economy.

Obi, who said this on his Twitter handle on Friday night 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. The multinationals that are leaving our 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. 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.

“I have consistently maintained that in turning our nation around, we must move the economy from consumption to production, part of which included 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.”

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