GSK exit: LCCI tasks govt. on holistic review of business environment

The Lagos Chamber of Commerce and Industry (LCCI) has tasked the government with taking a holistic review of the business environment and evolving strategies to make the nation’s business climate conducive and competitive for growth.

The Director-General of the Chamber, Dr. Chinyere Almona, said this on Tuesday in Lagos in reaction to the news of the exit of GlaxoSmithKline (GSK) from Nigeria.

Supreme News reports that GSK, a British multinational pharmaceutical and biotechnology company, has announced plans to exit Nigeria after 51 years of operation.

GlaxoSmithKline (GSK), which was incorporated in Nigeria on June 23, 1971, and commenced business on July 1, 1972, under the name Beecham Limited, has informed its board of its intent to terminate its agreement in the coming months and to appoint a third-party distributor for the supply of its consumer healthcare products.

Almona, therefore, said LCCI is gravely concerned about the decision by the pharmaceutical company to shut operations in the country after over five decades.

She added that many multinational firms have taken such decisions in recent years, with their attendantadverse effects on the economy.

According to the LCCI boss, such decisions are often provoked by rising costs of doing business, epileptic power supplies, and weak infrastructure, among others.

She said if the trend of business shutting down persisted, the nation’s economic growth potential would not be realised.

“GlaxoSmithKline’s decision critically reflects the nation’s poor ranking on ease of business measures, which the chamber constantly talked about.

“It is time the government takes appropriate actions to reverse the saddening trend in the business climate in Africa’s largest market.

“Factor cost, as an integral element of the profit equation, is viewed with utmost seriousness by business people. In the face of rising costs, business people will likely search for cost-friendly locations.

“The chamber is inclined to suggest that the government should take a holistic view of the business environment and evolve measures to make the nation’s business climate competitive for growth.”