BUSINESS NEWS: OVER 5,000 WORKERS TO LOSE THEIR JOBS AS PROCTER & GAMBLE IS SET TO EXIT NIGERIA
The exit of Procter & Gamble (P&G), a multinational consumer goods company in Nigeria, could result in a loss of over 5,000 jobs and a major decline in foreign investments into Africa’s most populous nation.
This comes after GlaxoSmithKline Consumer Nigeria, another multinational announced plans in August to exit the country after 51 years of operations.
On Wednesday, P&G which has been operating in the country for more than 30 years, through Andre Schulten, its chief financial officer at P&G said it plans to transit the Nigerian operations to an import-only model, effectively dissolving its on-ground presence in the country based on unfavourable macroeconomic conditions.
He said that the other reality that arises in some of these markets is that it gets increasingly difficult to operate and create U.S. dollar value.
P&G, makers of Always, Ariel soap, and Oral B toothpaste has invested millions of dollars in the manufacturing sector. The biggest such investment was the completion of the ultra-modern $300 million plant at Agbara, Ogun State in 2017. During the launch, it provided over 5,000 jobs directly and indirectly through its offices, suppliers and distributors and created over 200 SME jobs. However, one year later, it shut down the plant, citing restructuring of operations as its main reason. The plant was arguably the largest single investment by a non-oil firm in Nigeria.
|additional information from BusinessDay NG.
Source: Cityscoop ng