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No sign of companies relocating from Nigeria to Ghana, says BusinessDay

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investmentsAs the hoopla about the relocation of companies in Nigeria to Ghana continues, a Nigerian publication says despite media reports of relocation to Ghana because of the country’s power problems, these companies cannot be located in Ghana.

A report carried by BusinessDay, which is also circulated in Ghana, says it has found after extensive enquiries and investigations that the claims of relocation cannot be supported by the facts on the ground in Accra.

Earlier publications in some sections of the Nigerian media which has also been carried by ghanabusinessnews.com identified specific companies that have relocated their businesses to Ghana citing the unreliable power supply in Nigeria and Ghana’ more conducive business environment including incentives offered by the Ghana government to foreign businesses.

Some of the noted companies that the media reported to have already moved their operations out of Nigeria into Ghana include Mitchelin, Unilever, PZ and Guinness.

The reports also said, the energy shortfall has forced Dunlop to stop production of tyres in the country. The company instead has divested into the importation of tyres.

In one report the Vanguard, another Nigerian publication quoted a former President of the Association of National Accountants of Nigeria (ANAN), Dr. Samuel Nzekwe. Dr. Nzekwe the report said called on the Nigerian government to concentrate on developing infrastructure to discourage the industrialists from relocating.

Another Nigerian publication LeadershipNigeria reporting on the relocation of companies said the matter came up in the Lagos State House Assembly. Hon. Sanai Agunbiade, Chairman of the Committee on Commerce and Industry told the House under matters of urgent public importance that “manufacturing companies in Nigeria are already folding up to relocate to Ghana and take advantage of the country’s liberal investment incentives. And they are leaving Nigeria because of the country’s acute power shortage.”

The BusinessDay report however citing an interview with Ghana’s Trade and Industry Minister, Hannah Tetteh, said there are no facts to support the claims.

Ms. Tetteh told the publication: “I am not aware of any. What I am aware of is Nigerian banks opening subsidiaries here. We also have some Nigerian companies that were already in the energy sector doing oil business like Sahara. We have some in computer assembly like OMATEK. They are few others but not the kind of wholesale scale as your media will have it.”

In specific reference to Dunlop, Mr. Cletus Kosiba, executive director of the Association of Ghana Industries (AGI), told the publication that he has no knowledge of the development.

A Ghana Investment Promotion Council (GIPC) source also told the newspaper that he has no knowledge of companies in Nigeria relocating to Ghana.

A ghanabusinessnews.com source who recently arrived in Ghana from Nigeria and is pricy to industry information, however said, Cadbury is folding up its operations in Nigeria.

He said the company has shut down all its production units, except the production of “Tomtom” candies. He said even though, the Nigeria operations of Cadbury is much bigger than the Ghana operations, Cadbury plans to move its operations to Ghana by next year.

By Emmanuel K. Dogbevi

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  1. Now you are talking. It makes no business sense for them to RELOCATE, rather I would say expand into Ghana. I have always believe that this is the handiwork of some unprofessional Nigerian journalists (since they were the one that started the rumuors anyway) that are too lazy to carryout any investigative journalism.

  2. Why don’t you shut up Uncle. Businesses are closing down their factories in Nigeria. Does it really matter if they move to Ghana or not. The fact remains that they are closing down in Nigeria mostly due to the power problem but they’re not closing down like this in Ghana. Why can’t you just think straight and say the truth even if it’s only the first time in your life. If things continue like this, what lies ahead for us and our children. No one can escape the consequence, even your own children.