American Company Set to Leave Nigeria After FG’s Comment on 800 Companies Shutting Down
- Kimberley Clark is set to leave Nigeria after operating in the company for almost 15 years
- According to the company, it intends to close its manufacturing facility and commercial office in Lagos
- It said it is refocusing on the company's strategic priorities globally as well as economic developments in the country
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
After operating in Nigeria for nearly 15 years, the American international personal care company Kimberley Clark has announced its intention to withdraw.
Source: UGC
This was revealed in a statement by the company on Friday.
The statement said:
“Kimberly-Clark today announces it has made the difficult decision to exit its business in Nigeria after almost 15 years, due to recently refocused company strategic priorities globally as well as economic developments in the country."
It stated that the business would no longer produce, market, or sell its Huggies and Kotex goods in Nigeria and would close its manufacturing plant and commercial office in Lagos.
“Consistent with Kimberly-Clark’s value of care, the company’s top priority will be to fulfil its obligations and ensure that employees and partners are treated with fairness and respect.”
According to a Guardian report, an anonymous source revealed that the plant has been producing below capacity since the last decade as a result of the harsh economic environment within the country.
Legit.ng reported that the minister of finance, Wale Edun, has said that economic volatility is responsible for forcing 800 enterprises to close business in 2023.
Edun disclosed this in Abuja on Tuesday, May 28, during the sectoral report celebrating President Bola Tinubu's first year in office.
The minister said the exit of the companies from Nigeria was not unexpected, according to TheCable report.
Another consumer goods giant moves to exit Nigeria
Legit.ng reported that PZ Cussons Plc said on Wednesday, April 24, 2024, that it had begun a strategic review of its African businesses to exit Africa, partly due to economic challenges in Nigeria.
The company said its sales in Nigeria plunged by 48% due to the naira devaluation and inflation.
The CEO of PZ Cussons, Jonathan Myers, stressed the importance of looking towards the future while respecting the company’s past, stating that the review’s outcomes could include changes in ownership.
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Source: Legit.ng
