December 07, (THEWILL) – Procter & Gamble (P&G), maker of consumer goods, has announced plans to end on-ground operations in Nigeria and resort to importing products in the country’s market.
The Chief Financial Officer of the group, Andre Schulten, disclosed this during his presentation at the Morgan Stanley Global Consumer & Retail Conference.
Schouten, who decried the difficulty in doing business in Nigeria as a dollar-denominated organisation said, “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 the 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.”
Schulten said the decision will help the company focus on markets that have the highest potential.
Responding to questions about 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.
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