Another U.S. Multinational Exits Nigeria
Following the recent exit of GlaxoSmithKline Consumer Nigeria (GSK) from the Nigerian market, another multinational Procter & Gamble (P&G), has announced plans to shut down its production lines and switch to an import-only model.
The firm has struggled in recent years to have a hold in the fast-moving consumer goods market it dominated for decades. In 2018, just one year after its launch, P&G faced harsh realities and was forced to shut down its U.S.$300 million production plant in Nigeria, writes Premium Times.
In 2021, P&G further scaled back in Nigeria by laying off workers and downsizing its operations. Despite this, it maintained its commitment to staying in the Nigerian market.
However, 2023 has presented an exceptionally challenging environment for businesses in Nigeria. The already struggling economy has been further hampered by the current government's implementation of various reforms, including the removal of the fuel subsidy and the naira float.
2023 has proven to be exceptionally challenging for Nigerian businesses. The previously struggling economy has faced further difficulties, exacerbated by the implementation of various reforms such as the removal of the fuel subsidy and the floating currency's value.
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Nigeria:
Timeline - P&G's Troubled Operations in Nigeria
Premium Times, 8 December 2023
The company's chief financial officer (CFO), Andre Schulten, said it is pretty difficult for his company, as a U.S. dollar-denominated business, to create value in the country. Read more »
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Nigeria:
P&G to End Manufacturing Operations in Nigeria
Premium Times, 6 December 2023
P&G could incur charges anywhere between $1 billion and $1.5 billion after-tax from restructuring its operations in Nigeria and Argentina. Read more »
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Nigeria:
Foreign Investors Pull Out N310bn Assets, As P&G, Equinor Exit Nigeria
Vanguard, 7 December 2023
Against the backdrop of more exits from ground operations in Nigeria by more multinational companies, Nigeria's economy is expected to lose $335 million (about N310bn) in Foreign… Read more »
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Nigeria:
Forex Crisis - 5,000 to Lose Jobs As P&G Exits Nigeria
Daily Trust, 7 December 2023
At least 5,000 jobs would be affected as a global leader in consumer goods, Procter & Gamble, announces plans to dissolve its on-ground operations in Nigeria and carry out… Read more »
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Nigeria:
P&G Pulls Back From Nigeria, Argentina's Markets in Restructuring Move
Leadership, 6 December 2023
Nigerian consumers will soon see fewer Procter & Gamble (P&G) products on shelves, as the American multinational consumer goods company announced a limited market portfolio… Read more »
InFocus
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Procter & Gamble is reportedly set to shut down its production plant in Agbara Industrial Estate, a year after it was commissioned. The plant produces Always sanitary pads and ... Read more »
P&G manufacturing site in Agbara, Ogun State.
InFocus
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British pharmaceutical firm GlaxoSmithKline (GSK) is leaving Nigeria after a 51-year presence, dropping its plan to increase its stake in GSK Consumer Nigeria, its consumer ... Read more »