Connect with us

    Hi, what are you looking for?

    Business

    P&G Stops Production in Nigeria over Harsh Operating Environment

    Procter-Gamble
    Procter-Gamble

    Procter & Gamble (P&G), American multinational consumer goods, has said that it has plans to transition from local production to solely importing its products as the firm winds down its on-ground presence in Nigeria.

    Andre Schulten, chief financial officer, P&G, disclosed this on Tuesday, during his presentation at the Morgan Stanley global consumer & retail conference in New York.

    P&G is the manufacturer of common Nigerian household items such as Pampers, Always, Oral B, Ariel, Ambi-pur, SafeGuard, Olay and Gillette.

    Schulten said the decision is a result of the challenging business environment in Nigeria, as well as the difficulty in creating US dollar value.

    “The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S dollar value,” he said.

    “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 program 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 program 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 development is coming less than one month after Sanofi exited the country.

    In November 2023, Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, said it would adopt a third-party model for the distribution of its products in Nigeria.

    The company said the “exciting transformation of its business model in Nigeria”, would take effect in February 2024.

    Similarly, in August, GlaxoSmithKline (GSK) Consumer Nigeria Plc announced plans to cease operations, transferring its business activities to a third-party organisation.

    Spread the love
    Click to comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    ad

    You May Also Like

    Oil and Gas

    Leading oil and gas experts in Nigeria have called for the full adoption of digital technologies to overcome the complex challenges facing the country’s...

    News

    Russia’s Finance Ministry announced on Wednesday, September 24, that it plans to raise the country’s value-added tax (VAT) to help finance the ongoing war...

    Tech

    Lagos State has reaffirmed its position as Africa’s leading technology and innovation hub following the successful hosting of the GITEX Nigeria Tech Expo, Future...

    News

    The United States has reversed its visa restrictions on Ghana after the West African country agreed to accept west Africans deported by the United...