Procter & Gamble, an American global consumer goods firm, revealed plans to terminate its on-ground activities in Nigeria, changing the country into an import-focused market.
This information was taken from a 39-minute webcast uploaded on the company’s website on Wednesday.
Andre Schulten, the Chief Financial Officer, addressed at the Morgan Stanley Global Consumer & Retail Conference in New York, emphasizing the difficulties of functioning as a dollar-denominated organization in Nigeria’s challenging macroeconomic environment.
Despite having a $50 million net sales business in Nigeria, P&G, which has a $85 billion portfolio, stated that it projected little impact on the group’s balance sheet in terms of sales or profitability.
Schulten stated, “The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create US dollar value. So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.
“So with that in mind, we are announcing a restructuring programme with the intent to adjust the operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point.
“The restructuring programme will largely focus on Nigeria and Argentina. 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.”
The American multinational joined a growing list of multinationals to leave Nigeria in 2023. In June, the President of the Manufacturers Association of Nigeria, Francis Meshioye, had warned that more international manufacturing companies may leave Nigeria and site their factories in other countries.
