Procter and Gamble, popularly known as P&G, an old but global consumer company is planning to exit Nigeria and 5000 employees are likely to lose their jobs to the cause.
It is almost hard to have a huge chunk of Nigerians who have never used products from P&G considering that they have been the manufacturers of popular products which include Pampers, Always, Safeguard, Oral-B, Vicks, and more.
The company has been around in Nigeria for a long time, over 30 years, and now that they have plans to finally move out, a huge number of people will have to lose their jobs and a significant decrease in foreign investments in the country.
According to P&G, the reason for the decision is due to unfavorable macroeconomic conditions, effectively ending its physical presence in the country. The company says although it is leaving Nigeria, it will turn the operations in the country to an only import model.
This means that while the company is exiting its physical business in Nigeria, it intends to continue supplying its products to the country by importing them rather than producing or manufacturing them locally.
Andre Schulten, chief financial officer at P&G said, “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.” So, at least, Nigerians who are still lovers of P&G can still have some sort of hope to cling to.
He further mentioned that another challenge present in certain markets is the growing difficulty in conducting operations and generating value in U.S. dollars. “So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.”
Shulten also stated that considering this, they are announcing a restructuring program aimed at modifying the operating model and adjusting the portfolio to uphold the portfolio discipline that has led them to this stage. “The restructuring program will largely focus on Nigeria and Argentina,” he clarified.
Different sources have confirmed that the route P&G is taking with their business in Nigeria can be likened to the one proposed by two long-time manufacturing companies – GlaxoSmithKline and Sanofi-Aventis Nigeria in August and November 2023 respectively.
Looking at the trend of things, Kalu Aja, a certified finance coach, took to his X page to say that if the situation persists, there won’t be any small and medium-sized Enterprises remaining in Nigeria.
