In a recent statement, Leo Stan Ekeh, the Chairman of Zinox Technologies Ltd., has pinpointed corporate blackmail as the primary reason for the departure of multinationals from Nigeria. Ekeh highlighted the detrimental impact of blackmail on both multinational and indigenous businesses, expressing concern that more companies may follow suit if the issue is not addressed promptly.
Ekeh called upon President Bola Tinubu to tackle the issues of corporate blackmail and bullying, emphasizing the adverse effects on the government’s efforts to improve the ease of doing business in Nigeria. He acknowledged the forex scarcity as a challenge for businesses but stated that with the government’s new initiatives to inject more forex into the system, this challenge could be overcome.
The depreciation of the Naira and the difficulties in procuring forex were cited by exiting multinationals as reasons for closing operations in Nigeria. However, Ekeh asserted that these were merely diplomatic explanations, with many companies facing blackmail and corporate bullying, compounded by the slow judicial process and the legal system’s inability to provide timely protection.
Ekeh emphasized that the escalating corporate blackmail has contributed to the limited attraction of Foreign Direct Investments relative to Nigeria’s market size and potential. He urged the President to adopt policies promoting the patronage of indigenous manufacturers and service providers to stimulate the economy.
Expressing regret over the disregard for local content policies, Ekeh urged the government to prioritize indigenous products and services. Drawing a parallel with India’s restrictions on imports to boost local productivity, he appealed for deliberate measures to encourage indigenous producers, build confidence in the economy, and attract international investors.
Additionally, Ekeh urged the President to expedite the national census, emphasizing the importance of a credible database for informed decision-making and effective allocation of resources. He proposed repurposing the technology and equipment from the census to equip educational institutions nationwide, enabling students to acquire relevant digital skills for global competitiveness.
In conclusion, Ekeh’s call for decisive action against corporate blackmail and his recommendations to support indigenous businesses and prioritize local talent underscore the critical need for sustainable economic development in Nigeria. His insights shed light on the underlying challenges impacting the business landscape and resonate with the imperative to foster a conducive environment for both local and international investments.
