Procter & Gamble (P&G), a major player in the consumer goods industry, has announced its intention to discontinue its on-the-ground operations in Nigeria and transition to an import-only model.
The decision was disclosed by Andre Schulten, the Chief Financial Officer of the company, during his presentation at the Morgan Stanley Global Consumer & Retail Conference.
The company cited challenges associated with operating in Nigeria as a dollar-denominated organization, attributing its strategic shift to the prevailing macroeconomic conditions in the country. Procter & Gamble emphasized the complexities of conducting business in Nigeria, particularly as a company dealing in U.S. dollars.
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The macroeconomic challenges in the region have adversely impacted foreign companies operating in Nigeria, with difficulties in repatriating U.S. dollars from the country being a recurring issue.
The broader economic landscape in Nigeria, marked by unfavorable conditions for foreign USD-denominated companies, has been acknowledged by the Central Bank. The bank has acknowledged a significant forex backlog, estimated to be approximately $7 billion, further exacerbating the challenges faced by companies dealing in U.S. dollars within the Nigerian market.