P&G To exit Nigeria amid forex crisis

Procter & Gamble (P&G), a renowned consumer goods manufacturer, has unveiled its strategy to cease on-the-ground operations in Nigeria and transition to importing products for the country’s market.

During his presentation at the Morgan Stanley Global Consumer & Retail Conference, Chief Financial Officer Andre Schulten expressed the challenges faced by the company in conducting business in Nigeria as a dollar-denominated organization. He emphasized the increasing difficulty of operating and generating U.S dollar value in certain markets.

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.”

In response to these challenges, P&G has outlined a restructuring program aimed at adapting the operating model and portfolio to maintain the disciplined approach that has been pivotal to its success. The restructuring will primarily target Nigeria and Argentina, with Nigeria being transformed into an import-only market. This move signifies the company’s decision to dissolve its on-the-ground presence in Nigeria and shift to an import-only model.

Schulten clarified that the restructuring decision aligns with P&G’s focus on markets with the highest potential. When addressing inquiries about the impact of the planned restructuring on the overall group’s portfolio, the CFO noted that Nigeria represents a $50 million net sales business for the company.