₦airaland Forum

Diaper and sanitary pad manufacturer, Kimberley Clark will soon announce an imminent shutdown of its Ikorodu production facility two years after investing $100 million in Nigeria.

Sources within the company informed Nairametrics that the plant has been producing below capacity from late 2023 into 2024 due to the harsh economic environment within the country.

In 2022, the company inaugurated a $100 million production facility in Ikorodu, Lagos state to restart operations after a similar closure of operations in 2019 following a strategic review of its business.

Kimberly-Clark began operations in Nigeria in 2012 but stopped due to unfavourable economic conditions after five years in 2019 to later restart in 2021.

The company produces Huggies diapers, sanitary pads, Kotex and other hygiene and personal care products. KC is a listed multinational on the New York Stock Exchange with the majority of its shares held by institutional investors like Blackrock Inc., Vanguard Group, Morgan Stanley etc.

The planned closure of operations of Kimberly-Clark from Nigeria and the reasons provided are similar to those of other manufacturers who have exited the country in the past few years.

High production cost, currency depreciation affecting the import of raw materials, and weak purchasing power of the populace.

Last year, another U.S based company in the personal care business Procter and Gamble (P&G) closed production in Nigeria in a similar fashion having invested about $300 million (the single largest non-oil investment by a U.S company in Nigeria) in a production facility in Ibadan.

Similarly, PZ Cussons stated last month that it is evaluating strategic options for its Africa business for which Nigeria is the biggest and thinking of ways to maximise shareholder value. The company has also restarted asset disposal in Nigeria after a halt due to forex liquidity issues.

The baby diaper industry in Nigeria is estimated at $920 million with a CAGR of about 11% between 2024 and 2028 according to Statista. Leaders in the industry include; Pampers produced by P&G, Molfix, and Kimberly-Clark’s Huggies. However, it is a hugely competitive industry with about 15 brands competing for market share.

The planned closure of production in Kimberly-Clark’s facility in Nigeria is a huge blow to the federal government’s drive to attract foreign direct investment into the country and mirrors the challenges faced by players in the real economy.

Furthermore, the closure of operations means that two of the three leaders in the diaper and personal care industry in Nigeria (P&G and Kimberly-Clark) have ended production in the last one year.

Like GSK, P&G transitioned to an import-based business model, if KC tows the same line, it could exacerbate the cost of diapers and sanitary materials for babies and households following significant depreciation of the Naira and further increase the country’s imports at a time when the drive for local production is high.

airmark:
Thank you for telling him.

Today, they killed soldiers and he was even supporting the killing. He is a threat in Lagos and must be kept at bay.

He has history of supporting the violent activities of IPOB on this platform and he will be reported.

larride:
I think Jarus mentioned it on Twitter also about a land he wanted to buy in Epe or so.

The truth is that if you get correct surveyor most of these things are not hidden and are available in the ministry of lands. It is still the duty of buyers to beware before buying a land.

Just look at sod09 now, he hears that the land is for agriculture purpose and not residential and he still believe there's room for adjustment. That's how most of these developers, omo onile and land buyers behave, it's not as if they dont know that the land is designated for something else but they either believe the govt might not remember the land or that when the govt comes, adjustment will be made. When demolition starts, we will all start blaming the govt.

sod09:
Epe is still a long term project even if it's for farming there's room for adjustments

izzou:
[color=royalblue]It is only in interior villages that you can build and finish it without anybody knowing.

There is no way you will build in a town, that agencies will not start hunting you.[/color]

izzou:
[color=royalblue]Well, both should be pursued

Those who renovate like Isale Eko style, and those who build illegally

My only issue with the government is its insincerity and corruption

There is no how you will lay one block on the ground that the Local government, down to LASCBA abi na CABASA will not come and find you. Why not nip it in the bud then?

Today, na Epe dey rain. What is wrong if the Commissioner comes forth to warn people on where to buy or not?[/color]

sod09:
Those people collapsing building in ajah area
They should come to isale eko up till idumota too na

iamoyindamola:
I was about posting it
It's so unfortunate nothing can be done to reduce these accidents because the government can't send them away
Rehabilitation of old buildings and forming a taskforce that regulate and check the materials use for building should be formed

raumdeuter:
Years of decay and rot will take painful procedures to correct

Tinubu is on the right path.

Our best president since 1999

raumdeuter:
Lie saving surgery dey pain the patient, Yet it has to be done

GloriousGbola:
itsrm, ibime who is winning?
i cant tell

raumdeuter:
This is not time for campaign its time for governance

When its time to win 2027 you will see things, Just be ready for it

CrystalTiger:
I was also looking for AsoEbi wears that they'll parade but nothing came out at all..

BAT's failure would be remembered through lifetimes...

chrisooblog:
First off apologies for misinterpreting your assessment of Tinubu's performance to be 'below average' It wasn't directed as a slight or critique against you. I agreed with your assessment of Fashola being better only disagreeing with you about Tinubu's impact on Lagos state long term governance based on the policies and road map he initiated.

My engagement with your post was as an academic exercise not a game of political one up manship so suggesting I'm some 'fanatic' whether you believe me or not is way of the mark.

Whatever my opinions it's left for academics or neutral policy analysts to assess if the points hold any water.

I don't post that often here but there are enough posts to judge if I'm some PBAT 'fanboy'

Unfortunately I find we often engage with people's opinion on here often on perceived political leanings than whether they put out a false argument or not. As if supporting or being a critic of government will save one from consequences of bad government policies.

larride:
I am your brother, you are my brother 😂😂😂😂

izzou:
[color=royalblue]When the leaders are bereft of ideas, they begin to find some nonsense to do!

What next should we change? Names of states? [/color]

liveLongNprospa:
BlueRayDick e be like say Ajuri don lie for bayo head.
Tinubu is said to be on his way to National Assembly 😁

chrisooblog:
If you judge strictly based on actual performance that impacted people I can see why you would say PBAT was a below average governor but then again look at the policies and roadmaps that subsequent Lagos governors followed that improved the economic and infrastructural landscape of the state? You might hate his politics but you have to grudgingly accept Tinubu finish work. Lekki FTZ that houses port and Dangote refinery whose brain child was it? He implemented the tax regime as flawed as it is that has enabled the state to embark on projects that rival the FG. Fashola is by far the best administrator however if you're talking about a state governor that laid the policy foundation that has guaranteed the relative wealth of Lagos in comparison to other states then you have to give the man his flowers. All this without prejudice to his current performance as President. OBJ based strictly on economy is Nigeria's best president till date.

afrodoc:
That inflation rate statistic shows that Buhari was slightly worse in that regard sha.

liveLongNprospa:
How can buhari have a better scorecard than you?

A year into President Bola Tinubu’s tenure, the infectious optimism of liberty, economic progress, security, and well-being heralding his inauguration on May 29, 2023, has turned to dying embers. In the President’s first year, all Nigerians see is hopelessness, misery, privations, and pain. The despair is evident in the numbers: the cost-of-living crises, hyperinflation, joblessness, and naira depreciation. Amidst the supercilious backslapping in government circles, poverty, and bloodshed are intensifying. Tinubu should retrace his steps in the remaining years of his tenure to bequeath a redoubtable legacy to the country.


Under Tinubu, Nigeria is a harsh contrast to Abraham Lincoln’s “Democracy is the government of the people, by the people, for the people.” Instead, only a tiny band of politicians, their families, and sycophants are laughing all the way to the bank. From his “subsidy is gone” pronouncement on Inauguration Day, which cancelled petrol subsidies, chronic hardship has defined his tenure.

From N187 per litre pre-Tinubu, petrol now sells between N568/l and N800/l. Without well-implemented safety nets, most citizens have found it difficult to cope with the astronomical rise in transportation and food costs. This has heightened poverty. It stood at 46 per cent in 2023 or 104 million citizens, per the World Bank.

Two other policies have combined to bankrupt citizens. The first is the merger of the naira rates through floatation. The second is the cancellation of subsidies for Band A electricity consumers in April. Consequently, the naira has depreciated significantly. It exchanged at N464 per $1 in May 2023, plunged to N1,900/$1 early in 2024 before trading at around N1,400/$1 currently despite a raft of artificial policies to shore up its value. By February, it had lost 68 per cent of its value.


The impact goes beyond Nigeria. Formerly reckoned as Africa’s largest economy, Nigeria has ceded the top three continental slots to South Africa, Egypt, and Algeria respectively. It is now fourth in Africa with a GDP of $252.73 billion on the back of currency depreciation.

From N68 per kilowatt-hour, the tariff for the Band A segment climbed to N225/kWh before dropping to N206.80/kWh in May.

On the monetary policy side, the Central Bank of Nigeria has moved the benchmark interest rate from 18.50 per cent in May 2023 to 26.25 per cent, after three consecutive hikes in 2024.

All this has jerked up prices, though the Tinubu government is yet to implement a wage review. He met the national minimum wage of N30,000 per month. Businesses are complaining about the increased costs of borrowing funds.

In April, inflation spiked to a 28-year high of 33.69 per cent. Food inflation worsened to 40.63 per cent. Imports are priced steeply because of the depreciation of the naira. This is devastating to everyday living. Medicines are out of reach of citizens.

Tinubu, who has fulfilled his lifelong ambition to govern Nigeria, assumed office during the economic downturn. But there was hope initially of a revival after a largely successful eight-year tenure in Lagos State (1999-2007). In truth, that optimism is blowing in the wind.

Under him, governance is not much different from the preceding era of locusts supervised by the clueless Muhammadu Buhari (2015-2023). Abductions and killings are an epidemic. This is reminiscent of the Biafra Civil War (1967-1970).

While 63,111 died in violence on Buhari’s watch, 6,931 were killed in Tinubu’s first 10 months. Beacon Security and Intelligence counted 2,583 killings in the first quarter under Tinubu. SBM Intelligence reported 4,777 abductions when Tinubu assumed office to early May 2023. The worst-hit states are Plateau, Benue, Kaduna, Niger, Zamfara, Kogi, Katsina and Borno.

Beyond regular meetings with the security chiefs, Tinubu seems to have no strategy for taming the violence. His lack of a plan is seen in the rampage by bandits, Islamic terrorists, Fulani herdsmen attacks on farmers, and abductions across the country. Like Buhari, Tinubu ensconces himself in the Aso Rock fortress without identifying with the victims of violence by visiting the scene of the crime. He should show more empathy.


Undoubtedly, state capture has not receded in the past year. It is business as usual for the degenerate political class. Take the National Assembly. To undertake constituency projects – a cesspool of sleaze – ranking senators directly received between N200 million and N500 million in their accounts. This is wasteful, a brazen extortion of the commonwealth. Strangely, Tinubu applauded the lawmakers, saying “your integrity is intact!” It is not; it is state capture.

Nigeria still suffers from massive electricity shortages under Tinubu. The only good aspect is installed capacity, which hit 14,000 megawatts in 2023. It has not affected supply: the sole national grid often collapses if fed more than 4,000MW.

True, Tinubu inherited a hollow economy with a debt stock of N87 trillion (centre alone). The infrastructure is shabby, needing $150 billion annually over 30 years to bridge, per the World Bank. Social services, particularly education and health, are in a shambles.

Undeniably, it is not all bad news. Apart from speedily delivering the rehabilitation of the Third Mainland Bridge, and the Apapa-Oshodi Expressway in Lagos, the 700-kilometre Lagos-Calabar Coastal Highway at N15 trillion over seven years is ambitious. Abandoned since conception in 1978, the Tinubu administration is commencing work on the 1,000km Badagry-Sokoto Highway. This is in addition to the 330 federal roads and bridges the President virtually commissioned on Sunday. Combined, these projects are expected to begin an era of infrastructural renewal. Tinubu should ensure that none of them is abandoned.

Regularly, the military scores big against Islamic terrorists in the North-East. This has limited the reach of the insurgents.

The economy is suffering partly because of the importation of petroleum products. This reportedly gulps between 30 and 40 per cent of forex, putting enormous pressure on the naira. With the Dangote Refinery set to commence the production of petrol, the economy is set for a boost. The positive effect of the Dangote Refinery is already being felt in the cost of diesel.

As he embarks on the second year of his four-year term, Tinubu should govern with more compassion. He should cut back on his travels and be there for Nigerians during celebrations and mourning.

The President’s private sector background should quicken the pace of economic growth to reclaim its pride of place on the continent.


Surprisingly, he has not embarked on privatisation. Tinubu should privatise the refineries, the airports, seaports, the Ajaokuta Steel Company, and the railways. This will save the government on running costs and boost foreign direct investment.

The President should redirect focus on security. Without this, farming and business will continue to depress. There is a growing trend of brutality among the security agencies. They are abducting journalists with impunity. This is against the rule of law. Nigeria is no longer under a military regime so Tinubu should rein in their excesses.

His cabinet is bloated. He should have a compact team of performers to reduce the cost of governance.

Tinubu is toeing the path of his predecessors on restructuring. This is ludicrous. It is wishful thinking to believe that Nigeria will make progress without restructuring. The President should make restructuring a priority. It will unleash Nigeria’s productive capacity, rebuild trust in governance, improve security, and de-escalate inter-ethnic tensions.

Theflint1:
Fashola don already use Lagos own, after 4 or 8 years of Tinubu tenure another master plan go don dey for Nigeria...nothing concern Tinubu with governance.

raumdeuter:
Favorite President - Too early to say but Looking like Bola Ahmed Tinubu

Favorite governor - Undisputed Bola Ahmed Tinubu

Worst Governor - Adebayo Alao Akala

Theflint1:
You'd think the person he's rubbishing Fashola for isn't failing as president...maybe he's still fighting FG

raumdeuter:
If Fashola was good enough to be best governor in the whole of Nigeria for the past 25yrs, How come ministry of Power he wasnt good enough?

You were already giving excuses for Fashola in Power the position where he didnt have Tinubu clear road for him

Both are good, But Tinubu was the best governor in the past 25yrs

raumdeuter:
Non of these 2 people are card carrying APC emembers



https://www.youtube.com/watch?v=tqjLDuNQhE0

raumdeuter:
All these low impact ministry like interior. He for try works, Finance, Power or ministry wey public focus go always dey ontop, That performance metric is delivering passports in a few weeks and announcing public holidays abi

90% of Nigerians will never interface with the works of Tunji Ojo as they dont have nor need passports, unlike in Power, Works or finance ministry
What else, Look calendar and declare October 1 as Public holiday? If its not by force to have 36ministers should we have a minister dedicated to telling us that Dec 25 is Christmas?

What makes Tunji Ojo a fit for interior ministry, did he study Interior design in school?

Fashola you claimed excel in Lagos state, was it in ministry of Justice?
What made Fashola successful in a whole state like Lagos but not in ministry of Power? Probably no Tinubu template

izzou:
[color=royalblue]"I pave way for you"




Tinubu na John the Baptist[/color]