With Procter & Gamble, a global consumer goods corporation, announcing its intention to leave the largest African economy 31 years after entering the country, Nigeria stands to lose 5,000 direct employment.
P&G’s chief financial officer, Andre Schulten, revealed on Wednesday that the business intends to make Nigeria an import-only market.
Therefore, in 2017, the company, which produces consumer goods like as Always, Ariel, Oral B toothpaste, and others, will close its state-of-the-art $300 million plant located in Agbara, Ogun State.
Presidency Reacts As P&G Packs Up From Nigeria After GSK’s Exit
“We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” he said.
He bemoaned the portfolio decline of the corporation from $85 million to $50 million.
He continued by saying that another fact in some of these marketplaces is that it becomes harder and harder to make money in US dollars.
“So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment,” he added.
The announcement of plans to leave Nigeria by another international company, GlaxoSmithKline Consumer Nigeria, came months prior to this incident.
UPDATE: Atiku Reacts To GlaxoSmithKline (GSK) Exit From Nigeria After 51 Years
In response, Dr. Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise (CPPE) and a newly appointed member of the Nigeria Customs Service board, highlighted the realities of the Nigerian market by stating that any business with a significant amount of foreign exchange exposure faces significant challenges as a result of the recent devaluation of the naira.
“Businesses with foreign exchange exposure are struggling”, he stated.
Financial expert Kalu Aja also revealed on his official X Twitter that Nigeria will run out of small and medium-sized enterprises (SMEs) if this situation persists.
“As I keep saying, imports into Nigeria are cheaper. The economic implications are worse than an atomic bomb,” he wrote.
Banks And 18 Others fined N125m For Late Filings
According to Anaedoonline.ng, Lamido Yuguda, the Director-General of the Securities and Exchange Commission, stated in November that there is no reason to be concerned about businesses leaving Nigeria.
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.