Nigerians should not lose sleep over Shoprite exit ― Finance expert

A finance expert has said the imminent exit of Shoprite, the South African retail giant from Nigeria is nothing Nigerians should lose sleep over.

The professor of Finance at Nasarawa State University, Uche Uwaleke in a statement on Monday wondered “what is the net contribution of the company to the Nigerian economy?”

He, however, said that the exit of Shoprite, or any other foreign business for that matter, ordinarily should be a cause for concern especially for a country like Nigeria that is in dire need of foreign direct investment.

“Beyond the menial jobs, how many Nigerians are in the employ of the SA firm?

“Aside the crowding out effect of Shoprite on local competitors, its operations in Nigeria have also contributed to dwindling foreign reserves through imports that serve to satisfy the appetite of wealthy Nigerians for foreign goods.

“So, I think the type and quality of FDIs should matter for Nigeria.”

According to him, “what the country needs now are foreign direct investments in manufacturing, agriculture value chain, telecoms and IT and not businesses that promote the consumption of foreign goods and perpetually leave us import-dependent.

“Which is why I think Nigerians should not lose sleep over the exit of Shoprite.

“Where possible, the company should be bought over by Nigerians.

“As Shoprite is exiting, some other companies are waiting to berth.

“The right business environment post Covid-19 will bring this about.

“The country’s economic potentials and market size are such that the world cannot ignore.”

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