P&G Exit: More Multinational Companies May Exit Nigeria Soon – Manufacturers Association Of Nigeria Warns

Director-General of the Manufacturers  Association of Nigeria (MAN), Segun Ajayi-Kadir has warned that more multinational companies may soon exit Nigeria.

Ajayi-Kadir made this comment while speaking on Channels TV’s Sunrise Daily on Monday.

The DG who made this comment in the wake of the exodus of renowned multinational manufacturing company Procter and Gamble (P&G) told Nigerians to expect the exit of more multinationals stating that manufacturers were currently operating in a challenged environment.

“Obviously, 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,” Ajayi-Kadir said.

The DG further emphasized the need for the President Bola Tinubu-led government to engage manufacturers to decide whether the country wants to delve into manufacturing or not.

“Government needs to have a conversation with manufacturers to decide whether it wants to manufacture or not,” he added.

Naija News had earlier reported that P&G had announced that it would be stopping manufacturing activities in Nigeria.

The company lamented that 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.

The Chief Financial Officer of the group, Andre Schulten stated this during his presentation at the Morgan Stanley Global Consumer & Retail Conference.

Mr Schulten stated, “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.”

“So with that in mind, we are announcing a restructuring program with the intent to adjust 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.”