In a statement endorsed by DR CHINYERE ALMONA, DIRECTOR GENERAL, LAGOS CHAMBER OF COMMERCE & INDUSTRY has quoted The Chief Financial Officer of Procter & Gamble, Andre Schulten, who has indicated that P&G plans to transition its Nigerian operations to an import-only model, effectively dissolving its on-ground presence in the country. The company cited challenges in conducting business as a dollar-denominated organization and attributed its strategic decision to the macroeconomic conditions in Nigeria. The company has a portfolio valued at $85 billion with Nigeria contributing $50 million in net sales.
Over the last few months, the LCCI DG said 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. We have seen the likes of Unilever Nigeria, GlaxoSmithKline, and Guinness Nigeria Plc,she added.
In Nigeria, LCCI DG continues lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, have taken a toll on many businesses in the country.
The Chamber recommends that the government should implement measures to stabilize and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments. The LCCI also implores the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.
Further, the Chamber urges the government to engage multinational corporations and the business community to understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that will forestall the exodus of businesses from Nigeria. The CBN should prioritize the stability of the country’s currency and adopt the right policy mix to ensure price stability.
In a significant development, Procter & Gamble’s Chief Financial Officer, Andre Schulten, has revealed plans to shift the company’s Nigerian operations to an import-only model, marking a departure from its on-ground presence in the country. Citing challenges as a dollar-denominated organization and attributing the decision to Nigeria’s macroeconomic conditions, P&G, with an $85 billion portfolio, sees $50 million in net sales contributed by Nigeria.
This move adds to a concerning trend over recent months, with multinationals like Unilever Nigeria, GlaxoSmithKline, and Guinness Nigeria Plc signaling exit plans or reducing their involvement in the Nigerian market.
Numerous challenges, including foreign exchange scarcity, inadequate power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, have collectively impacted businesses in Nigeria.
The Chamber urges the government to implement measures ensuring stable foreign exchange availability, especially for dollar-denominated businesses, and advocates for a more flexible and transparent foreign exchange policy. Emphasizing the need for collaborative solutions, the LCCI calls on the government to engage with multinational corporations and the business community to address challenges and gather input for informed policy decisions.
“The stability of the country’s currency and the adoption of the right policy mix by the CBN are highlighted as crucial steps for ensuring overall economic stability.
