Unhealthy Business Environment: Another Blow To Nigeria’s Economy As Johnson & Johnson Plans Exit 

The deepening unhealthy business environment in Nigeria is again about to compel another multinational company, Johnson & Johnson Innovative Medicines (J&J), to commence exit plan from Nigeria

With the latest planned move by global healthcare giant Johnson & Johnson Innovative Medicines (J&J), on its preparation to shut down its operations in Nigeria, it will be the joining the likes of Norwegian energy company Equinor, Holcim AG, Diageo, Pick n Pay, Kimberly-Clark, among other multinational companies which has left Nigeria because of growing unhealthy business environment confronting businesses in Nigeria.

The planned exit, according to reliable source, who disclosed this to  Commerce and Industry Correspondents Association of Nigeria (CICAN), was due to Nigeria’s worsening economic climate occasioned by soaring inflation, foreign exchange scarcity, rising production costs, and unpredictable government policies.

According to the source, who chose to remain anonymous, Johnson & Johnson Innovative Medicines has supplied vital pharmaceutical and medical products to the Nigerian market, but the deteriorating business environment has now made its operations unsustainable.

“Over the past one year, they had reduced their staff strength to about 20% shrinking significantly. In 2022, the Consumer Healthcare arm of the company had also quietly left the country.

“This is not just about one company leaving. When a healthcare leader like Johnson & Johnson cannot survive in Nigeria, it sends a worrying signal to other global investors.”

Johnson and Johnson Innovative Medicines departure is expected to leave a significant gap in the healthcare supply chain, potentially limiting Nigerians’ access to essential medicines in the Oncology, Immunology and Mental Health spaces.