The decision by Procter & Gamble to discontinue manufacturing operations in Nigeria, opting for an import-only model, is indicative of a broader trend that may see more companies shutting down due to the ongoing forex challenges.

This is according to experts who spoke to Sunday PUNCH.

The American company said it was shutting down manufacturing operations due to challenges operating as a dollar-denominated organisation and attributed its strategic shift to the macroeconomic conditions in Nigeria.

The Chief Financial Officer of Procter & Gamble, Andre Schulten, who announced this information at a conference in New York, revealed that the company had a portfolio valued at $85bn with Nigeria contributing $50m in net sales.


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At least five multinationals have winded down operations in Nigeria in the last 10 months.

One of these firms is GlaxoSmithKline Consumer Nigeria – the firm announced plans in August to exit the country after 51 years of operations.


Speaking with Sunday PUNCH, the Chairman of the Nigerian Association of Small and Medium Enterprises, South-West region, Solomon Aderoju said Nigeria should expect more exits of companies due to the challenging business climate.


According to Aderoju, P&G imports some of the raw material for manufacturing which will be at a very high cost due to the high exchange rate.

He said, “Nigeria should expect more exits if nothing is done to make the business environment conducive. P&G is not the first to leave, more will leave.

“They have many reasons; it could be because of high inflation, high exchange rate, and insecurity, the problems are humongous,” he said.

The Director General of Lagos Chamber of Commerce and Industry, Chinyere Almona, said in a note to Sunday PUNCH, “Over the last few months, there has been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by the multinationals, and this trend is worrisome.”:


https://punchng.com/experts-fear-more-multinationals-exit-over-forex-challenges/

The message is clear now.

"Hit the ground running."

Best solution is to provide unwavering supports for local production.

If this administration is serious about growing the economy and lifting millions out of poverty, special attention at this point of time should be given to the small and medium scale businesses; especially in the manufacturing sector.

Wahala

The same Tinubu that developed Lagos hss ended up destroying Nigeria.

Owambe is the only thing these hulks have added to the national psyche.

Validated:
The same Tinubu that developed Lagos hss ended up destroying Nigeria.

Sea port Monopoly and Head of states developed Lagos not Tinubu

The purchasing power of average Nigerian is very low compared to other climes. Expect the following companies to japa also:

- WAMPCO
- Unilever
- GZ Industries
- Nestle Plc
- Reckitt Benckiser

If you work in above companies, just start saving because by 2024 Annual Reports, these companies' returns would be too marginal to overall operations to continue to be sustained.
Except a can of PeakMilk would sell for N1000 and a can of Milo sells for N2000, the ooearations of these companies would too low to sustain their investments. GZ being allied company would not have needed demands.

Validated:
The purchasing power of average Nigerian is very low compared to other climes. Expect the following companies to japa also:

- WAMPCO
- Unilever
- GZ Industries
- Nestle Plc
- Reckitt Benckiser

If you work in above companies, just start saving because by 2024 Annual Reports, these companies' returns would be too marginal to overall operations to continue to be sustained.
Except a can of PeakMilk would sell for N1000 and a can of Milo sells for N2000, the ooearations of these companies would too low to sustain their investments. GZ being allied company would not have needed demands.

Guy forget! WAMPCO and Nestle can NEVER leave

richiemcgold:
Best solution is to provide unwavering supports for local production.

If this administration is serious about growing the economy and lifting millions out of poverty, special attention at this point of time should be given to the small and medium scale businesses; especially in the manufacturing sector.

Exactly like they did to rice and now a 50Kg bag is almost N50,000 against the N8,000 before...!!!

Atimes I feel you idiots have mental issue or been completely stupid...!!!
This is Nigeria and we all know how it is here...!!

What nonsense local production...!!?
Nobody is stopping local production, if they can compete with product coming in from outside or even do better, who would care with importation again...!!

Only rice they allowed we all know how it is today...!!

Nonsense people...!!

Floky215:


Exactly like they did to rice and now a 50Kg bag is almost N50,000 against the N8,000 before...!!!

Atimes I feel you idiots have mental issue or been completely stupid...!!!
This is Nigeria and we all know how it is here...!!

What nonsense local production...!!?
Nobody is stopping local production, if they can compete with product coming in from outside or even do better, who would care with importation again...!!

Only rice they allowed we all know how it is today...!!

Nonsense people...!!

The topic is about multinational companies leaving Nigeria. What has this got to do with rice farmers? BTW, why sounding so abusive when you can articulate your points and opinion in a better way? Why are Nigerians so abusive like this? OMG!

Validated:
The same Tinubu that developed Lagos hss ended up destroying Nigeria.

Owambe is the only thing these hulks have added to the national psyche.

A tribe that sells their properties just to do owambe and carry big nyash

Floky215:


Exactly like they did to rice and now a 50Kg bag is almost N50,000 against the N8,000 before...!!!

Atimes I feel you idiots have mental issue or been completely stupid...!!!
This is Nigeria and we all know how it is here...!!

What nonsense local production...!!?
Nobody is stopping local production, if they can compete with product coming in from outside or even do better, who would care with importation again...!!

Only rice they allowed we all know how it is today...!!

Nonsense people...!!

u sounded dis way maybe u hv never had an encounter wit those fallen demons. People that support any thing bcs of a plate of amala and ewedu

richiemcgold:


The topic is about multinational companies leaving Nigeria. What has this got to do with rice farmers? BTW, why sounding so abusive when you can articulate your points and opinion in a better way? Why are Nigerians so abusive like this? OMG!

NIGERIANS ARE SO ABUSIVE ALL BCS SOME IDIOTS DECIDED TO BE USELESS BY SUPPORTING A VERY USELESS AND EVIL PARTY AFTER 8YEARS OF MAD MAN FRoM DAuRA
Dis is not nigeria we all enjoyed and could smile, every corner of dis Lagos one begger or d other.

Some pained loser feel it is smart to link every negative trend to the declared winner. It is becoming stale and you guys are nothing more than nuisance to neutral readers.

They are already leaving

This will surely compound the economic woes of this nation. DFI is one of the maintain of a country's GDP.

RepoMan007:
Some pained loser feel it is smart to link every negative trend to the declared winner. It is becoming stale and you guys are nothing more than nuisance to neutral readers.

In United States, who do they link negative news that happens to the country to?

I don't need long talk. I asked a simple question

When you refuse credible elections a chance lamentation and woes become your portion. This is the result