Relocation of Nigerian companies to Ghana causes stir in country’s industries

The relocation of Nigerian companies to Ghana is causing stirs in the country’s industries, the Nigeria Stock Exchange, Manufacturers Association and Lagos Chamber of Commerce have all joined in calls to check the trend before the worse hits Nigeria’s economy.

Reports in the Nigerian media say the country’s stock exchange is worried about the movement of capital into other countries including Ghana.

Some of the factors that are pushing the businesses out of Nigeria are the country’s worsening energy problem.

Nigeria’s stock exchange is unsure of its future as these companies move out and take capital out.

Some of the noted companies that have already moved their operations out of Nigeria into Ghana include Mitchelin, Unilever and PZ, according to reports available to ghanabusinessnews.com.

The energy shortfall has forced Dunlop to stop production of tyres in the country. The company instead has divested into the importation of tyres.

Ghana as compared to Nigeria, which is the most populous country in West Africa with an estimated population of 140 million is obviously a larger market. Ghana has an estimated population of 22 million, but the country has political stability and is considered more secure than Nigeria.

Ghana also has its own energy challenges but the country has made huge investments in augmenting its energy needs with a thermal plant. There are also efforts to encourage private investments in the energy sector to boost industry.

By Emmanuel K. Dogbevi