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sent to the Nigerian Exchange Limited.
The announcement dropped on the day that GSK Nigeria published its
half-year 2023 financials
, which showed a significant drop in revenue; ₦7.8 billion, from a corresponding value of ₦14.8 billion in the first half of 2022. This is more than a 50 per cent drop in revenue within the same period.
in June that the foreign exchange shortages in Nigeria were negatively affecting its operations, several deductions have been made regarding what caused the company to withdraw from the country. On top of the list is the inability of the company to secure the much-needed foreign currency, which is important to repatriate revenue earned in the country and to purchase raw materials from abroad. A spokesperson for the company pointed out that the challenge of accessing foreign currency affected the ability to maintain a consistent supply of medicines and vaccines in the market. There has also been the view that GSK Nigeria could not keep up with the stiff competition from Indian and Chinese drugs, which had unseated its dominance in the market, as they are cheaper alternatives.
a series of developments have affected not just GSK Nigeria but the country’s manufacturing sector at large. Inflation has been climbing to record levels, reducing the purchasing power of Nigerians. There was also
the cash crunch due to the naira redesign policy
, from which the country is yet to fully recover. The much-needed
of the petrol subsidy and the foreign exchange
have further compounded the situation, given their less-than-stellar implementation. The aforementioned events and their poor execution have translated to increased operational costs for multinationals, with the erosion of income and trading capital.
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