South African grocery retailer Pick n Pay has announced plans to exit Nigeria by selling its 51 percent stake in a joint venture, becoming the latest multinational to pull out of the Nigerian market.
Pick n Pay’s Chief Executive Officer, Sean Summers said the decision is part of the company’s broader restructuring strategy for its international operations.
The retailer entered Nigeria less than five years ago, partnering with A.G. Leventis to open two stores in the country.
The move follows a pattern of recent withdrawals by international companies citing Nigeria’s challenging economic and business conditions.
In June, South African retailer Shoprite closed its store in Abuja following a similar shutdown in Kano earlier this year.
The decision was reportedly based on financial assessments and concerns over the local business environment.
Another prominent exit came in December 2023 when Jumia, Africa’s largest e-commerce platform, announced it would discontinue Jumia Food, its food delivery service in Nigeria, citing unsustainable market conditions.
Beyond retail, multinationals in various sectors have also scaled back or ceased operations in Nigeria. In recent years, companies such as GlaxoSmithKline Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark have left the market, each pointing to the increasingly difficult economic landscape.
Many businesses have struggled with inflation, foreign exchange shortages, and regulatory complexities, leading them to reevaluate their operations within Nigeria.
The exits underscore growing concerns about Nigeria’s economic stability and highlight the challenges of sustaining long-term investments in one of Africa’s largest markets.
