Deloitte: Multinational Firms Exit Ghana and Nigeria Amid Inflation, Currency Weakness

Professional services firm Deloitte has highlighted the increasing exodus of multinational companies from Nigeria and Ghana, attributing the trend to high inflation, dollar illiquidity, and currency depreciation.

In its Sneak Preview of 2025, Deloitte noted that the consumer industry in both countries continues to struggle with the effects of rising inflation, which is driving up the costs of goods and services, eroding purchasing power, and shifting consumer priorities.

“In Nigeria, rising inflation has contributed to the exit of several multinational companies, including Procter & Gamble, GSK, and Bolt Food,” Deloitte explained. “These companies have cited escalating operational costs, the lack of dollar liquidity, and significant currency volatility as key reasons for their departure. The sharp depreciation of the naira against the US dollar has compounded these challenges.”

Although Nigeria’s currency showed some stability in the final quarter of 2024, Deloitte cautioned that high inflation and interest rates could continue to drive multinationals out of the market. However, it acknowledged that the naira’s relative stability in the early part of 2025, coupled with ongoing tax reforms, could help boost consumer and investor sentiment.

In Ghana, a similar trend has unfolded, with around eight multinational firms exiting the market in late 2023 and throughout 2024. Companies such as Glovo, Nivea, Jumia Foods, Dark and Lovely, Bet365, and Game have all pulled out, citing the challenging economic climate.

“Dark and Lovely cited difficulties in the rapidly changing beauty industry, while Jumia closed its food delivery service, citing unsustainable market conditions,” Deloitte noted.

Implications for Businesses

In response to these challenges, Deloitte predicts that companies will increasingly adopt strategies like miniaturization or sachetization—offering smaller, more affordable product sizes to cater to strained consumer budgets. This trend, the firm argues, will likely intensify as companies seek to remain competitive while managing rising costs.

Deloitte concluded that to survive in these tough economic conditions, businesses will need to embrace localization strategies, introduce cost-cutting measures, and offer affordable alternatives to sustain operations and retain market share.