P&G To Close Ground Operations In Nigeria

Procter & Gamble, a major consumer products company, has said that it intends to close its physical locations in Nigeria and convert the nation into an import market.

This was said by the company’s chief financial officer, Andre Schulten, in a speech at the Morgan Stanley Global Consumer & Retail Conference.

The company clarified that its most recent strategic choice was influenced by Nigeria’s macroeconomic realities and that it is challenging for an organization denominated in dollars to conduct business in that country.

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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.

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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.