Relocation of companies from Nigeria to Ghana: Why Nigerians think Guinness would not move

guinnessThe Nigerian economy is jittery as a result of movements of some companies from the country to Ghana. Businesses in West Africa’s most populous country are relocating to Ghana because Nigeria has serious power shortage.

Following the flight of companies, the Nigerian Stock Exchange, and the Lagos Parliament have all expressed concern, fearing disaster for the Nigerian economy and its consequences of youth unemployment and attendant social problems.

One of the companies that has been cited as planning to relocate to Ghana is Guinness Nigeria, but a Nigerian publication, the Guradian argues that the company is not likely to move to Ghana giving some reasons.

According to the Guardian, it has found out after investigations that “although the company is making frantic efforts to sustain production capacity at optimum level, it has no plans to close production lines in Nigeria a market that is adjudged its second largest in the world.”

While the publication admits that it was unable to get officials of the company to comment on “the alleged plan, by the company, to close production lines in Nigeria and invest in a more ‘economically viable’ Ghana”, it quotes a former marketing executive of the company, who is still privy to some operations of the company, who maintained that “Guinness had no intention to leave Nigeria for whatever reason at this time.”

The former official told the Guardian that “hauling its products from Ghana -a smaller market – to Nigeria, would not only be a bad business decision, but also entail an additional burden on the company’s operating cost and harm its profitability.”

“They are not leaving Nigeria, because of any power situation. The power problem in the country is not new; it has been a recurring problem that has been with us for ages (and I agree that it is worsening) but the company has been running on generators for the bulk of the time,” the source was quoted as saying.

There is no doubt that the relocation of Nigerian companies to Ghana is a big blow to the country’s pride as the leader in West Africa. A clear example of this notion was expressly revealed by some prominent Nigerians including senators, over President Obama’s decision to visit Ghana and not Nigeria. Media reports showed that some Nigerians even tried to downplay the significance of the visit.

One Nigerian politician even told the BBC that if Obama by visiting Ghana, was trying to convey a message to Nigeria, then that message has not been conveyed well enough.

Certainly, the decision of companies to relocate to Ghana, is a business decision, executives of the companies are solely responsible for. And Obama’s visit to Ghana, was his decision, Ghana, as a nation did not invite President Obama nor compelled him to visit. In the same way the people of Ghana are not dragging the businesses that are moving into the country by the hand.

It is hoped that the Nigerian authorities would do what ought to be done and put their acts together, because no amount of actions or words to disparage Ghana would stop the companies from moving, if the situation in Nigeria is nothing but one that makes good business sense to relocate to Ghana.

By Emmanuel K. Dogbevi

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  1. Bright says

    I like the drift of the article but there was little information to support or show that indeed Company X or Y has relocated to Ghana or has expanded capacity in Ghana and reduced capacity in Nigeria and taken advantage of some factors-resources in Ghana.
    Plus the case of Guiness contemplating moving to Ghana was neither corroborated by a senior Guiness Gh or Nigeria staff.
    Better work next time!!

  2. John Ojeah says

    Emmanuel Dogbevi, please can you name any Nigerian company that has relocated to Ghana? It sure doesn’t make any business sense. If they move Ghana’s power generating system will be strained severly. The demand for power is large and they will end up bringing down your power system, unless your government has plans to expand your power generating capacity.

    In Nigeria, it is a known fact that most opposition will always blow everything out of proportion and it was disproportionate noise that brought the military back in 1983. I still regard all those talks about Nigerian companies relocating to Ghana as noise and propaganda by the opposition, since they are yet to name one. Guiness recently completed a multimillion dollar plant in Nigeria (making it 4), that doesn’t sound like a company that wants to relocate.

    So, remember your assignment : name one company that you know that has CLOSE shop in Nigeria and relocated to Ghana (not a company that has opened a branch there, since investing or expanding is different from relocating).

  3. John Ojeah says

    Note also that the people making the most noise about companies relocating to Ghana are mainly Nigerians. Dogbevi, typical of his trademark rank-xerox journalism, will just copy and paste without carrying out any investigation.

  4. Omoigiade says

    Ghana seems to be relishing the visit of Obama with so much importance. With all the news and recent pride about its economy, its still relatively smaller than that of Lagos and Rivers states. Nigeria has a thriving local investors to fuel the economic growth of our country.

    The drift in the article shows one who is using this medium to cast aspersions on Nigeria. Ghanaians should desist from this. It will not help the West African sub continent. I was in Accra a few months ago and what i saw shows that Ghana’s economy is almost an extension of Nigeria’s. Our major brand names dominate their landscape. They surely need Nigeria more than we need them.

  5. oye says

    I am beging the nigeria govt in the name of GOD to see that no company moves to Ghana,Nigeria may regret this movement tomorrow, and when this damage is done now, please bear in mind that the next generatin will not for give you all, you may say that this damages will be after you had gone, but I could assure you that , you will not have a rest of mind whereever you maybe,it could be in hell, so try to discourage any company trying to go to Ghana re to the poor energy in Nigeria.God will take control, I know that this probleme is beyound the govt.power,this is due to the corruption in NIGERIA, only God can put a stop to this,I wonder where are these corrupt leaders taking the money to. God bless nigeria.

  6. Olusola GB says

    I think it doesn’t make any sense for any MD/CEO of a company to wake up one day and decide to move your company to Ghana, Look at the population of Ghana and compare it with that of Nigeria. Look at the size of Nigeria’s labour force and compare it to Ghana’s labour force. Also look at the professionalism and capabilty in Nigerians. It’s just like saying you want to move your company from China to Ghana because of some silly thing. It’s true that power supply is not alright in Nigeria but we are hoping that someday, it would be alright but if a company decides to move, let them move to hell or any where they want to move to. Let them close their factory and sell it to people who are willing to stay with Nigeria in the Dry season and let us see true Nigerian companies. This is the times to fish out the true Nigerian companies from the assholes that are just coming to make money from the system and run away to other places. After they run to Ghana to make money, they will take all their money and run away from Ghana too. And Ghana will be in trouble waters.
    When Nigeria becomes better, they will be the ones begging to come back because the system will be changed. They will hyave to compete with their competitor in Nigeria after they leave and Nigeria becomes better. Nigeria market is more fatter(bigger) than the ghana market. If they choose to leave, let them leave and sell their stakes to true Nigerian companies.

  7. Jaiye-Gbenle Tosin says

    There are 4 ways to which companies respond to infrastructural deficiency..
    1. Provide for your self
    2. reduce production
    3. factor substitution
    4, relocate
    There is no stable electricity supply in Nigeria, water, roads to move your goods with ease, customs would milk you for bringing raw materials in, the ports are snail slow. corruption increases the cost of production. How long does it take you to establish a business in Nigeria? There is no peace and stability like there is in Ghana. What more does a company want?
    If your manufactured products sell in Nigeria, in no time imitations would flood the market.
    I am Nigerian… but given these circumstances, I would rather invest in Ghana than invest in Nigeria.
    If the right infrastructure are in place then people can put ideas to work. Nigerians are Smart (the only thing we have now is the internet and we are making use of ever slow it can be).
    Imagine a country with good roads, constant electricity supply and more less corruption. We would lead Africa out of its problems.

  8. john the baptize says

    Well. Nigeria is Nigeria we are bad let us be.. we can’t change the world unless we change ourselves. so people should not judge us. good luck open your eyes and read what people talking about Lagos. let Abuja be great dont allow poor people from outside country to come and live there. both shoe makes , this is how lagos feed all africa right now they are complaining that lagos is dirty.

  9. Shola-Akinyemi says

    A mental shift and mind revamp helps a man stand to take responsibility and stop blaming God or some “gods” for mishaps or corruption…………I can bet u that u would wait till 4eva if u’re praying against corruption in ur bedroom while we all don’t see it as our collective responsibility to fight it.

    The Government is a direct reflection of the people and the people get the type of leader they deserve………….the devil or evil spirits are not the ones behind power shortage………I have never seen a country in the world where “angels” came from heaven to build roads, hospitals, library etc……………Let us drop this deception and hypocrisy that makes us feel helpless and then say we need to pray more.There is no developed nation that says we needed 2pray and fast 4us to build a bridge………..A wise man once said “Religion is the opium of the poor” (poor here means poor in spirit, in mind, in intelligence and mind power).

    I strongly suggest that It’s time for the upcoming generation to start generating “Mind power” less they fall into the trap of their “fathers” and also leave Nigeria in perpetual darkness!We may not be able to do anything to change our today cos some men designed it yesterday but we surely can do something about our tomorrow if we see a new crop of men stand up to re-create a glorious future today. Nigeria would surely take its rightful place in the comity of great nations if we do it right.Stay inspired.

    U can also feed me back on sholaakinyemiatgmaildotcom if you need us 2talk about initiatives/projects that help create the future u and i desire.Cheers.

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