Nigeria Loses Another Multinational Company Due to Harsh Economy

Kimberly-Clark, the American multinational corporation behind Huggies, has announced plans to cease its manufacturing and sales operations in Nigeria after nearly 15 years.

In a statement released on Friday, the company attributed its decision to a shift in global corporate priorities and current economic conditions in Nigeria.

“Kimberly-Clark has made the tough decision to withdraw from the Nigerian market after almost 15 years,” the statement read. “This move aligns with our recently adjusted strategic priorities and is a response to the economic landscape in the country.”

The company will close its Lagos-based manufacturing plant and commercial office, discontinuing the production and sale of Huggies and Kotex products in Nigeria.

Ensuring a smooth transition for employees and partners, Kimberly-Clark emphasized its commitment to treating all parties with fairness and respect during the exit process.

This announcement comes shortly after the company invested over $100 million in a factory in Lagos’ Ikorodu area, which opened in 2022.

Kimberly-Clark’s exit is part of a broader trend of multinational companies scaling back operations in Nigeria.

In August 2023, GlaxoSmithKline (GSK) Consumer Nigeria Plc revealed plans to wind down operations and transfer business activities to a third-party entity. Similarly, French pharmaceutical firm Sanofi-Aventis Nigeria Limited ceased its direct operations in the country in November 2023.

Furthermore, in December 2023, Procter & Gamble (P&G) announced its intention to shift from local production to importing products.

These developments reflect the increasingly challenging business environment for international corporations in Nigeria.