ADC Blames Tinubu’s Economic Policies for Uber, Other Business Exits

By Peter Emmanuel |

The African Democratic Congress (ADC) has blamed the economic policies of Bola Tinubu’s administration for the exit of Uber and the shutdown or scaling down of operations by several major businesses in Nigeria.

The party said the departure of the global ride-hailing company after 12 years in Nigeria was evidence of the increasingly difficult operating environment facing businesses across the country.

In a statement issued on Thursday by its National Publicity Secretary, Mallam Bolaji Abdullahi, ADC said the growing number of companies leaving Nigeria or reducing their operations exposed what it described as a widening gap between government claims of economic progress and the reality facing businesses and citizens.

The party questioned the celebration of a 0.2 percentage-point improvement in GDP growth at a time when, according to its claims, businesses were shutting down, jobs were disappearing and millions of Nigerians were struggling with rising living costs.

ADC said the development raised concerns about the sustainability of the economic policies being implemented by the Tinubu-led government and their impact on businesses and ordinary Nigerians.

ADC Says Uber Exit Signals Loss of Confidence in Tinubu’s Policies

ADC said Uber’s exit reflected the increasingly hostile business environment in Nigeria, particularly the rising cost of energy and transportation.

The party argued that the departure of major companies should prompt the government to examine why international businesses were finding it increasingly difficult to operate in the country.

According to ADC, the exit of Uber should not be viewed in isolation, as it came alongside reports of several other international companies shutting down or scaling back their Nigerian operations.

The party listed Microsoft, Jumia and Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among companies it said had either shut down or reduced their operations in Nigeria.

ADC also cited a Manufacturers Association of Nigeria report which it said showed that 767 manufacturing companies, including 20 major global brands, had shut down or ceased operations, while hundreds more were distressed.

Party Questions 0.2% GDP Growth Amid Rising Poverty, Hardship

The ADC questioned the significance of the reported 0.2 percentage-point improvement in GDP growth, arguing that economic growth should translate into tangible improvements in the lives of Nigerians.

The party said the reported growth was inadequate to justify what it described as the severe hardship being experienced across the country.

ADC claimed that Nigeria’s poverty rate had risen to 63 per cent, affecting an estimated 140 million Nigerians, and challenged the Tinubu administration to explain how the reported economic growth had improved their living conditions.

The party also pointed to workers whose salaries had lost purchasing power, businesses struggling with energy costs and households forced to reduce the quantity and quality of food they consume.

“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.

ADC Blames Fuel, Energy Costs for Worsening Business Environment

The party linked the difficulties facing businesses to rising fuel and energy costs, as well as the impact of the naira’s devaluation.

ADC said fuel prices had increased significantly following the removal of the fuel subsidy and the devaluation of the naira, thereby raising the cost of transportation and production.

It argued that higher operating costs were putting additional pressure on businesses and making it difficult for companies to remain competitive in Nigeria.

The party said the situation was particularly concerning for manufacturers and other businesses that depend heavily on fuel and electricity to operate.

ADC maintained that the government needed to urgently address the cost of production and create a more supportive environment for businesses to survive and expand.

Party Backs Atiku’s Targeted Fuel Subsidy Proposal to Cut Costs

ADC said its presidential candidate, Alhaji Atiku Abubakar, had proposed the restoration of a targeted fuel subsidy as part of measures to reduce the cost of fuel, transportation and production.

The party argued that a targeted intervention could help cushion the effect of high fuel prices on households and businesses without returning to the previous subsidy regime in its entirety.

ADC said reducing transportation and production costs would help businesses remain operational while also easing pressure on consumers.

The party also questioned the claim that Nigeria had “turned the corner” economically, asking why several major businesses were still leaving or reducing their presence in the country if confidence in the economy was improving.

ADC cited GlaxoSmithKline’s exit from local manufacturing after five decades as an example of the concerns it said should compel the government to reassess its economic policies.