Why Kimberly-Clark, Maker Of Huggies Is Exiting Nigerian Market

Kimberly-Clark has announced its decision to shut down its manufacturing plant and exit the Nigerian market after nearly 15 years of operation.
In a statement released by KCSSA West Africa Limited, the company explained: “Kimberly-Clark has made the difficult decision to exit its business in Nigeria due to recently refocused company strategic priorities globally, as well as economic developments in the country.”
As a result, Kimberly-Clark will close its manufacturing facility and commercial office in Lagos, discontinuing the production, marketing, and sales of its Huggies and Kotex products in Nigeria.
“Consistent with Kimberly-Clark’s value of care, the company’s top priority will be to fulfill its obligations and ensure that employees and partners are treated with fairness and respect,” the statement added.
Despite a $100 million investment in Nigeria two years ago, Kimberly-Clark has decided to leave the market amid deteriorating economic conditions, including the removal of fuel subsidies, the floating of the Naira, and the central bank’s tight monetary policy, which has raised interest rates on business loans. These factors have led to increased costs for raw materials, energy, and electricity.
Kimberly-Clark’s exit follows similar moves by other multinational companies, such as GSK and Procter & Gamble. The Manufacturers Association of Nigeria (MAN) recently urged the federal government to address the significant challenges faced by manufacturing operations in the country.