P&G Halts Operations in Nigeria

P&G Halts Operations in Nigeria

THE WHAT?  Procter & Gamble (P&G) has decided to stop its on-ground operations in and move to an import-based model. This change affects various P&G products, including Always, Pampers, Ariel, Oral B, and Gillette, as announced by CFO Andre Schulten at the Morgan Stanley Global Consumer & Retail Conference.

THE DETAILS   P&G’s move comes in response to difficulties in operating as a dollar-denominated business in Nigeria’s challenging economic environment. Although Nigeria contributes $50 million to P&G’s $85 billion portfolio, the company has faced ongoing challenges in the country, including a planned shutdown of a major production plant in 2018 and significant downsizing in 2021.

THE WHY? Nigeria’s economic climate in 2023 has been tough for businesses, with increased operating costs due to policy reforms such as fuel subsidy removal and currency fluctuations. This environment has led several multinational companies, including Unilever Nigeria, GlaxoSmithKline UK, and Guinness Nigeria Plc, to restructure their operations, exit certain markets, or stop importing specific products to cope with the challenges of foreign exchange scarcity and rate instability.