In the aftermath of renowned multinational manufacturing company Procter and Gamble’s (P&G) decision to cease manufacturing activities in Nigeria, the Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has issued a warning that more multinational companies may follow suit.
During an appearance on Channels TV’s Sunrise Daily on Monday, Ajayi-Kadir expressed his concern about the challenging operating environment for manufacturers in Nigeria. He remarked that while the news of P&G’s exit was received with sadness, it was not entirely unexpected, and Nigerians should brace themselves for the possibility of additional multinational companies making similar decisions.
“Obviously, we received it with sadness, but it is not totally unexpected, and more may happen because there is no doubt that we operate in an environment that is challenged,” said the MAN Director-General.
Ajayi-Kadir stressed the urgency for the government, led by President Bola Tinubu, to engage with manufacturers and decide whether the country intends to prioritize and support manufacturing.
“Government needs to have a conversation with manufacturers to decide whether it wants to manufacture or not,” he emphasized.
Earlier reports highlighted P&G’s announcement of its decision to halt manufacturing activities in Nigeria, citing challenges related to the Dollar to Naira exchange rates and issues within the macro-economic environment. The company’s Chief Financial Officer, Andre Schulten, explained the difficulties faced in operating and creating U.S dollar value in countries like Nigeria, leading to the restructuring program.
“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,” Schulten stated during his presentation at the Morgan Stanley Global Consumer & Retail Conference.