Uncertainty in Nigeria affects Indian auto, pharma, and consumer firms

Nigeria is a major destination for Indian pharmaceutical companies, especially mid-sized ones

Exports of Indian automotive, pharmaceutical, and consumer goods companies are likely to be impacted in the near term by the political uncertainty, demonetisation, and poor economic growth in Nigeria.

Among the factors affecting the outlook for Indian firms is the contested result of the presidential elections in Nigeria, won by Bola Ahmed Tinubu, which the Opposition has threatened to challenge in court. Apart from that, there is the Nigerian central bank’s October 2022 decision to demonetise 200, 500, and 1,000-naira notes, which was implemented in February.

On Friday, Nigeria’s Supreme Court ordered the central bank to extend until December 31 the use