Investors Who Cherish Rule of Law are Being Replaced by Those Who Know How to Game The System – Atedo Peterside

Important Nigerian banker and economist Atedo Peterside has stated that investors who respect the rule of law, continuity in policy, macroeconomic stability, and fair competition are finding Nigeria’s business climate to be more and more unfriendly.

Peterside noted this in a tweet in response to the announcement that Procter and Gamble (P&G) will be importing its products instead of continuing with local production. Known for producing well-known household brands like Pampers, Always, Oral B, Ariel, Ambi-pur, SafeGuard, Olay, and Gillette, P&G is a global consumer goods corporation.

According to Peterside, P&G’s move was a sign of the challenges faced by foreign investors in Nigeria who value things like the rule of law, consistent policy, macroeconomic stability, and fair competition.

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He went on to say that these investors were only partly being replaced by people who knew how to “partner” with legislators and/or manipulate the system by getting waivers, exemptions, and other special treatment.

“Another way to look at this @ProcterGamble exit story from @thecableng is that multiple investors who cherish the rule of law, policy consistency, macroeconomic stability, a level playing field etc are running away from Nigeria. They are being ‘replaced’ only partially by investors who know how to ‘partner’ with politicians and/or game the system through waivers, exemptions etc,” he tweeted.

P&G had declared on Tuesday that it was reorganising its activities in Nigeria in order to provide a more profitable business operation both today and in the future. The largest non-oil investment by the United States in the largest economy in Africa was the withdrawal from local production in Nigeria.

Andre Schulten, the company’s chief financial officer, made this announcement in New York at the Morgan Stanley global consumer & retail conference. He explained that the harsh business climate in Nigeria and the challenge of generating US dollar value were the reasons behind the decision.

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The import charges that must be paid on seventy-five percent of imported raw materials contributed to the high cost of production, which the company had been finding difficult to manage. Another issue was the high cost of power generation. In contrast to some of its rivals, the business allegedly refused to sacrifice its principles or take shortcuts in order to survive in the marketplace.

Many Twitter users have responded to Peterside’s message, offering their thoughts on the state of business in Nigeria as well as the effects of P&G’s departure on the economy and customers.

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