According to a report by the Nigerian Communications Week, Samsung has begun the scaling down of their operations in Nigeria with the decision to drop their interest in setting up a manufacturing plant in the country. The manufacturing plant was set to represent the beginning of heavy expansion into the West African country.
The Guardian Nigeria reported that the decision was down to the dwindling economic fortunes of the country and that although the federal government claimed it was on top of the situation, companies throughout Nigeria are closing shops in large numbers.
Samsung has also started reducing their investments in Nigeria by shutting down the Business to Business (B2B) Unit as well as the Corporate Social Responsibility (CSR) Unit. These shutdowns have resulted in over 100 Nigerians losing their jobs.
This revelation comes in the backdrop of a poor economic climate in Nigeria, which has had a negative impact on Foreign Direct Investment in the Information and Communication Technology (ICT) sector of the country.
This claim has been backed by the Association of Telecommunications Companies of Nigeria (ATCON) whose president, Olusola Teniola, has called on the federal government to realise that ICT is a sector that is critical to the diversification of the economy.