The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has issued a warning that Nigeria may witness the departure of more multinational companies following the exit of Procter and Gamble (P&G). Ajayi-Kadir expressed his concerns during an interview on Channels TV’s Sunrise Daily.
The exit of P&G, a renowned multinational manufacturing company, was attributed to challenges faced by businesses in Nigeria. P&G’s Chief Financial Officer, Andre Schulten, cited difficulties with the Dollar to Naira exchange values and challenges in the macroeconomic environment as significant factors.
“We received it with sadness, but it is not totally unexpected, and more may happen because there is no doubt that we operate in an environment that is challenged,” stated Ajayi-Kadir.
He emphasized the need for the government, led by President Bola Tinubu, to engage in a dialogue with manufacturers to determine the country’s stance on manufacturing.
“Government needs to have a conversation with manufacturers to decide whether it wants to manufacture or not,” he added.
P&G’s decision to cease manufacturing activities in Nigeria is part of a broader restructuring program announced by the company. Andre Schulten explained during his presentation at the Morgan Stanley Global Consumer & Retail Conference that the difficulties in creating U.S dollar value in markets like Nigeria contributed to the decision.
“The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S dollar value. So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment,” noted Schulten.
As a result of the restructuring program, P&G declared Nigeria as an import-only market, dissolving its physical footprint in the country and reverting to an import-only model.
