Procter & Gamble (P&G), a global consumer products giant, may be leaving Nigeria, which might lead to the loss of over 5,000 jobs and a significant drop in foreign investment in the most populous country in Africa.
This comes after another multinational, GlaxoSmithKline Consumer Nigeria, declared in August that it would be leaving the nation following 51 years of business.
Muda Yusuf, chief operating officer of the Center for the Promotion of Private Enterprise (CPPE), told BusinessDay on Wednesday that “the impact of the market on the company’s overall net worth is due to two key factors – intensified competition within the industry and a declining consumer purchasing power.”
He went on to say that the recent devaluation of the naira highlights the current state of the Nigerian market and presents serious issues for any company with a large amount of foreign exchange exposure.
According to certified financial coach Kalu Aja on X, Nigeria will run out of small and medium-sized enterprises (SMEs) if this trend continues.
“It’s cheaper to import into Nigeria, as I keep stressing. The consequences for the economy are more dire than an atomic weapon.
P&G, which has been doing business in Nigeria for more than 30 years, announced on Wednesday that it intends to convert the country’s operations to an import-only model, so ending its physical presence there due to unfavorable macroeconomic circumstances.
emerges in several of these markets is that operating and creating wealth in US dollars becomes more and more challenging. “Thus, the macroeconomic environment makes it difficult for us to operate when you consider places like Nigeria and Argentina.”
The company, which produces the toothpaste brands Oral B and Ariel soap and Always, has made millions of investments in the manufacturing industry. The most significant of these investments was the $300 million, ultra-modern facility that was completed in Agbara, Ogun State, in 2017.
In addition to creating over 200 SME positions, the 2017 plant launch resulted in the creation of over 5,000 direct and indirect jobs through its offices, suppliers, and distributors.
But a year later, it closed the plant, primarily due to an operational reorganization.
