BUSINESS STRATEGY

Kimberly-Clark confirms its exit from the troubled Nigerian market

By our African Marketing Confederation News Team | 2024

Multinational will no longer manufacture, market or sell its Huggies and Kotex products in the country, despite $100m investment in 2022.

Kimberly-Clark has confirmed that it is leaving Nigeria after almost 15 years in the country and less than three years after it opened a new US$100–million manufacturing facility in Ikorodu, Lagos.

Kimberly-Clark’s Lagos manufacturing facility.

Photo: Kimberly-Clark

The company confirmed widespread speculation in the local media in a short press release, saying it is a “difficult decision” made due to “refocused company strategic priorities globally as well as economic developments in the country”. 

 

Kimberly-Clark will close its manufacturing facility and commercial office in Lagos and will no longer manufacture, market, or sell its Huggies and Kotex products in the country,” the statement reads. 

 

“Consistent with Kimberly-Clark’s value of care, the company’s top priority will be to fulfil its obligations and ensure that employees and partners are treated with fairness and respect.” 

 

It joins a long line of multinationals that have decided to either exit or scale back business operations in Nigeria due to the difficult economic conditions. Among them are Procter & Gamble, GlaxoSmithKline, Unilever and PZ Cussons. 

 

Declining consumer spending power among factors 

 

Factors typically cited include the weak naira, high inflation, foreign exchange problems, and declining consumer spending power. 

 

News of Kimberly-Clarke’s impending withdrawal was first broken by financial information and business news website, Nairametrics, which quoted unnamed sources with the Nigerian business as saying the company initially enjoyed strong sales growth, but the economic situation has greatly impacted its operations. 

 

“The reliance on imported raw materials further heightens the problem,” Nairametrics reported. 

 

“With the rising cost of these imports, combined with the weakening Naira, Kimberly-Clark is unable to keep up. The company initially set aside funds for operations, expecting Nigerian revenue to sustain them within five years. However, the current economic reality offers a difficult environment.” 

 

Kimberly-Clark’s decision to exit Nigeria is a far cry from its bullish statements in February 2022 when it commissioned its new manufacturing facility in Lagos. 

 

It said at the time: “Kimberly-Clark is committed to continue investing in its status as a world-class local manufacturer and promises to continue to provide Nigerian consumers with top quality essential hygiene and personal care products.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.