After Sanofi, GSK, Another Consumer Giant Moves to Dissolve Operations in Nigeria, Gives Reasons
- Another consumer manufacturing company has announced its decision to quit operations in Nigeria
- Procter & Gamble, the leading consumer manufacturing company, said it dissolving its on-group operations due to macroeconomic issues
- The company cited Forex challenges and other issues as reasons for the decision
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Leading consumer goods manufacturer Procter & Gamble has revealed plans to dissolve its on-ground operations in Nigeria and turn the country into an import market.
The company's Chief Financial Officer, Andre Schulten, disclosed this during a Morgan Stanley Global Consumer and Retail Conference presentation.
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Procter & Gamble provides reasons for ending Nigerian operations
The consumer giant stated that it is challenging to do business in Nigeria as a dollar-dependent company and that the macroeconomic reality in Nigeria is responsible for its decision.
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He said
So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment."
"The restructuring program will largely focus on Nigeria and Argentina.
Schulten explained that the decision will aid the company to concentrate on markets with the highest potential.
He said Nigeria is a $50 million net sales market, stating that the decision would have little impact on its overall operations as an $85 billion conglomerate.
More companies exiting Nigeria
The decision by P&G to exit the Nigerian market came amid forex volatility in the country.
In August 2023, British healthcare company GSK announced it ended operations in Nigeria after 52 years.
Feelers from the market show that GSK's decision has impacted Nigeria's cost of prescription drugs and general healthcare products.
Reports say that President Tinubu has instituted reforms to attract foreign investment into Nigeria, but it seems it has only brought more hardship in the short term.
After GSK, Sanofi, another foreign company to leave Nigeria, sells shares to local operator
Legit.ng reported that Equinor Nigeria Energy Company (ENEC) has agreed with Chappal Energies to sell ENEC's 53.85% ownership in the oil and gas lease OML 128.
According to a statement obtained from Equinor's website, this includes the unitized 20.21% stake in the Agbami oil field, operated by Chevron.
The deal's completion, however, according to the statement, is subject to regulatory approval.
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Source: Legit.ng
