Procter & Gamble (P&G) has provided insight into the decision to cease manufacturing operations in Nigeria, citing challenges stemming from the Dollar to Naira exchange values and the broader macro-economic environment.
Speaking at the Morgan Stanley Global Consumer & Retail Conference, P&G’s Chief Financial Officer, Andre Schulten, candidly stated, “It is becoming increasingly difficult to do business in Nigeria due to issues with Dollar to Naira exchange values and issues with the macro-economic environment.”
In response to these difficulties, the multinational consumer goods corporation has opted to shift its focus to import activities exclusively. This strategic restructuring, which also impacts P&G’s operations in Argentina, aims to navigate the challenges posed by operating in these markets.
Mr. Schulten explained; “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”.
While detailing the restructuring program, he stated, “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.”
Schulten reassured that Nigeria’s $50 million net sales business constitutes a minor portion of the organization’s $85 billion portfolio.
