Why exactly are major international firms leaving the Nigerian market?

Nigeria's myriad problems have decades-old origins, but the Tinubu administration bears responsibility for poor rollout of reforms

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I: Rushing for the exits

Last week Diageo, a UK-based alcoholic beverage giant, announced its planned divestment from Guinness Nigeria. The operation was sold for a mere $70m to Toloram, a Singapore-based firm with deep political connections in Abuja, and a controlling interest in the Lekki Deep Sea Port, as well as joint ventures with several producers of consumer products (e.g. Kellanova/Kellogg, Indomie, Huggies, Colgate-Palmolive and others). According to Bloomberg, in March Guinea Nigeria reported “a loss after tax of 61.65 billion naira compared with a 5.87 billion naira profit a year earlier.” Diageo will lease the Guinness brand to Toloram and will continue operating its premium spirits business in Nigeria.

Diageo’s partial exit from the Nigerian market raises an important question: if a beer maker cannot make money in Nigeria, w…