The African Democratic Congress (ADC) has described Uber’s reported exit from Nigeria as another sign of what it called the worsening business environment under President Bola Ahmed Tinubu’s administration.
The opposition party said the development, coming amid reports of several multinational companies shutting down or reducing their operations in Nigeria, showed that businesses were losing confidence in the country’s economic climate.
In a statement issued on Thursday in Abuja, the ADC National Publicity Secretary, Mallam Bolaji Abdullahi, said the reported business exits exposed what he described as a gap between the Federal Government’s claims of economic progress and the realities confronting businesses and ordinary Nigerians.
The party questioned the significance of the reported 0.2 percentage-point increase in GDP growth being celebrated by the government, arguing that the figure had not translated into meaningful relief for Nigerians.
“Certainly, a 0.2% growth does not justify the extreme hardship that Nigerians are suffering,” the party said, putting Nigeria’s poverty rate at 63 per cent and estimating that about 140 million Nigerians were affected.
The ADC challenged the Federal Government to explain how the reported economic growth had improved the lives of Nigerians, particularly workers battling declining purchasing power, businesses struggling with high energy costs and households cutting spending on basic food items.
“When the President and his party say things are getting better, we expect them to tell us what has improved in the lives of Nigerians,” the party said.
The opposition party linked Uber’s reported departure after about 12 years of operations in Nigeria to rising operating costs, particularly the cost of energy and transportation.
It argued that petrol prices had risen sharply following the removal of fuel subsidy and the depreciation of the naira, putting additional pressure on businesses and consumers.
The ADC said the situation reinforced the argument of its presidential candidate, Alhaji Atiku Abubakar, for a targeted intervention to reduce fuel costs.
“This is precisely why the ADC Presidential Candidate, Alhaji Atiku Abubakar, has proposed the restoration of a targeted fuel subsidy to bring down the cost of fuel, transportation and production,” it said.
The party also cited figures attributed to the Manufacturers Association of Nigeria, claiming that hundreds of manufacturing companies, including major international brands, had shut down or stopped operations in Nigeria since the beginning of the Tinubu administration.
It listed Microsoft, Jumia, Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline (GSK), Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among companies it said had either exited, shut down or scaled back their Nigerian operations.
The ADC specifically cited GSK’s reported decision to end local manufacturing after decades in Nigeria as evidence of the challenges facing businesses in the country.
It questioned the Federal Government’s repeated claims of economic recovery, saying such claims were difficult to reconcile with reported business closures and operational cutbacks.
“Therefore, when the President announces that Nigeria has turned the corner, we wonder which corner he is talking about,” the party said.
The opposition party warned that business closures went beyond corporate losses, stressing that every company that shuts down or cuts operations could lead to job losses, reduced investment and greater hardship.
“The painful truth is that Tinubu has turned Nigeria into a graveyard of businesses,” the ADC alleged.
The party maintained that business exits were important indicators of investor confidence and the overall health of the economy.
“Every business that shuts down or pulls out is a vote of no confidence in the Tinubu administration and its capacity to manage the economy,” it said.
The ADC also criticised the government’s reliance on GDP figures as evidence of economic improvement, arguing that growth figures would mean little to Nigerians without increased purchasing power, more jobs and lower living costs.
The party reiterated its support for Atiku’s proposal for targeted intervention in fuel production costs, saying the measure would help reduce energy and transportation expenses, improve business profitability and boost job creation.
