Reps moves to probe closure of local companies, exit of multinationals

Reps moves to probe closure of local companies, exit of multinationals

The House of Representatives has called for a thorough investigation on the closure of local companies and departure of multinationals companies and factors militating against the ease of doing business in Nigeria.

The House resolution was made following the adoption of a motion on urgent public importance brought to the floor of the House during recent plenary by Hon. Dr. Patrick Umoh, co-sponsored by Hon. Paul Ekpo and Hon. Lukman Mudashiru.

Debating the motion, the lawmakers said that in the past seven years, several manufacturing companies especially those in the fast moving goods industries have either left Nigeria or stopped production.

They said companies like Surest Foam Limited, Mufex, Framan Industries, MZM continental, Nipol Industries, Jubilee Syringe among top Pharmaceutical companies have all exited the country due to Nigeria’s operational environment.

According to them, the departure of these multinationals companies is creating serious concern as it affects the Country’s GDP, hinder economic growth, increase unemployment, increased poverty, decreased government revenues and investor’s confidence in the capital market.

Adopting the motion, the House urged its committee on Industry, Labour, Employment, and Productivity to investigate the closure of local companies and departure of multinationals companies from Nigeria and the factors affecting against ease of doing business in Nigeria and report back to the House in four (4) weeks.

The House also called on the Executive to prioritize investment in infrastructure and power sectors, providing tax incentives to encourage businesses and investors to invest in Nigeria.