South African Company Closes Shop In Nigeria Over Economic Realities
BEVERLY HILLS, February 19, (THEWILL) – A South African retail company, Truworths has shut its outlets in Nigeria as a result of the prevailing economic realities in the country, coupled with Federal Government's policies aimed at strengthening the battered Naira.
Disclosing this development to Reuters, the company's Chief Executive Officer, Michael Mark said “We were unable to operate the stores properly any longer because we were unable to send merchandise to the stores because there's regulation preventing that”.
Aside being unable to stock its shelves, the clothing retailer disclosed that it was struggling to pay its rent and get access to foreign exchange which has dried up due to a collapse in oil prices.
His comments about the economy suggest that attempts by the President Muhammadu Buhari-led government to boost local industry are hurting foreign investment.
THEWILL is aware that in an attempt to boost local manufacturing and prop up the ailing Naira, the Central Bank of Nigeria, CBN has banned 41 items from accessing foreign exchange from official sources.