Consumer goods giant Procter & Gamble has stated it plans to dissolve on-ground operations in Nigeria and turn its country into an import market.

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

The company explained that it is difficult to do business in Nigeria as a dollar-denominated organisation and the macroeconomic reality in Nigeria is responsible for its latest strategic decision.

What the company said
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”

It further explained that the decision will help the company focus on markets that have the highest potential.

Reacting to questions bothering on the effect of the company’s planned restructuring in Nigeria and Argentina on its overall group’s portfolio, the CFO explained that Nigeria is a $50 million net sales business.

Compared to its overall portfolio worth $85 billion, the company does not anticipate any material impact on the group’s balance sheet from a sales or profitability standpoint.

Backstory
The current macroeconomic conditions in Nigeria have negatively affected foreign USD-denominated companies in Nigeria. In August, drug maker GSK announced it’s ceasing operations in Nigeria and appointing a third party to take over distributions.

These companies have often cited difficulty in sending back U.S. dollars outside Nigeria. The Central Bank has acknowledged it has a forex backlog to the tune of around $7 billion

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https://nairametrics.com/2023/12/06/pg-to-dissolve-ground-operations-in-nigeria-revert-to-an-import-only-business-model/

Yo niggas! Brace yourself up for the era of Napkins and pieces because so many family won't be able to afford to buy pampers..

It's going to be worse than Abacha regime

So many job losses , they are practically leaving Nigeria .

If things continue like this Nigeria will be the next Venezuela .

Las Las everybody must chop this breakfast including Agbadorians.

I have said it times without number that a good product market itself. It doesn't need much publicity.

Af far as international companies keeps shutting down their operations in Nigeria, all the so called foreign trips by Tinubu to woo investors to Nigeria is an excercise in futility.

The country is in good hands!👌

Lol

It further explained that the decision will help the company focus on markets that have the highest potential

One leg in one leg out.

Kossyso:
The country is in good hands!👌

Really?

Period of surviving with available

If scented soap no dey available for store shelf,buy black soap or make one

Chinjo2:

Af far as international companies keeps shutting down their operations in Nigeria, all the so called foreign trips by Tinubu to woo investors to Nigeria is an excercise in futility.

The man can't lie to those within, he needs to try his luck outside.

RepoMan007:
Really?

Is it not so obvious?🤷‍♀️

Renewed Hope

u cant give what u dont hv. we still dey learn politics 101 from agbadorians.
shey na igbos bi una problem, we go see d end of it. mak person no commit suicide ohhhhh bcs west coast and suicide na 5&6

In other words 'a manufacturing giant is shutting down operations in Agbadonation'. Omase oo. It will end well for me and my family lagbara olorun.


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