P&G Announces Exit from Nigeria After 31 Years, Putting 5,000 Jobs At Risk

Procter & Gamble, a multinational consumer company, is set to exit Nigeria after a 31-year presence, potentially resulting in the loss of five thousand direct jobs for the country.

On Wednesday, P&G chief financial officer Andre Schulten revealed that the company plans to transform Nigeria into an import-only market.

Due to this decision, the company, responsible for manufacturing popular products like Always, Ariel, Oral B toothpaste, and other consumer goods, will shut down its ultra-modern $300 million plant at Agbara, Ogun State, in 2017

“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 expressed regret over the company’s portfolio declining from $85 million to $50 million.

He added that in some of these markets, it becomes progressively challenging to operate and generate U.S. dollar value.

“So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment,” he added.

This development occurred several months following GlaxoSmithKline Consumer Nigeria, another multinational company, announcing its intentions to exit from Nigeria

Dr. Muda Yusuf, the Executive Director of the Centre for the Promotion of Private Enterprise (CPPE) and a newly appointed member of the Nigeria Customs Service Board, responded by stating that the recent devaluation of the naira poses considerable challenges for businesses with substantial foreign exchange exposure, highlighting the present realities of the Nigerian market.

“Businesses with foreign exchange exposure are struggling”, he stated.

Kalu Aja, a financial expert, revealed on his official X handle that if this situation persists, there will be no Small and Medium-sized Enterprises (SMEs) left in Nigeria

“As I keep saying, imports into Nigeria are cheaper. The economic implications are worse than an atomic bomb,” he wrote.

Kanyi Daily,reportst that the Director-General of the Securities and Exchange Commission, Lamido Yuguda, stated in November that the exit of companies from Nigeria does not warrant any cause for alarm.

Kanyi Daily recalls that Lagos State Internal Revenue Service (LIRS) had closed 34 corporate organizations because they didn’t pay their employees’ income taxes and didn’t follow the rules for charging and remitting consumption taxes in the hospitality sector.