The African Democratic Congress (ADC) has described the reported exit of global ride-hailing company Uber from Nigeria as another indication of what it called the increasingly difficult business environment under the administration of President Bola Ahmed Tinubu.
The opposition party said the decision by Uber to leave Nigeria, alongside the reported shutdown or scaling down of operations by several international companies, amounted to a “vote of no confidence” in the government’s economic policies.
National Publicity Secretary of the ADC, Bolaji Abdullahi, stated this in a statement issued on Thursday, arguing that the development contradicted claims by the Federal Government that the economy was improving.
Abdullahi said it was particularly concerning that the government was celebrating a marginal improvement in economic growth while businesses were allegedly shutting down, reducing their operations or leaving the country.
“Certainly, a 0.2% growth does not justify the extreme hardship that Nigerians are suffering,” the party said.
The ADC challenged the Tinubu administration to explain how the reported economic growth had translated into improved living conditions for Nigerians, particularly workers, businesses and households facing rising costs.
“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. They should tell us how much food their GDP growth has put on the tables. They should tell us which bill it has paid,” the party said.
The opposition party linked the challenges confronting businesses to the removal of fuel subsidy, naira depreciation and rising energy and transportation costs.
According to the ADC, the cost of fuel had risen significantly since the removal of subsidy, putting additional pressure on businesses and consumers.
The party also cited what it described as an earlier report by the Manufacturers Association of Nigeria that hundreds of manufacturing companies had shut down or ceased operations, with several multinational companies also scaling down their presence in the country.
It listed companies including Microsoft, Jumia, Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among businesses it said had either shut down or reduced their operations in Nigeria.
The ADC argued that the development raised questions about the sustainability of the government’s economic reforms.
“Therefore, when the President announces that Nigeria has turned the corner, we wonder which corner he is talking about,” the party said.
The party cited the exit from manufacturing in Nigeria by GlaxoSmithKline after decades of operations as another example of the challenges facing multinational businesses in the country.
“The painful truth is that Tinubu has turned Nigeria into a graveyard of businesses. 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,” the ADC said.
It further argued that business closures and reductions in operations could have consequences for employment and household incomes.
The party also used the opportunity to restate the economic proposal of its presidential candidate, Atiku Abubakar, which includes what it described as a targeted subsidy aimed at reducing fuel and production 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 ADC maintained that reducing production costs would help businesses remain profitable, preserve jobs and ease the cost-of-living pressures confronting Nigerians.
The party urged the Federal Government to focus on policies that would make Nigeria more attractive to domestic and foreign investors rather than relying on headline economic growth figures.
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