Kimberly-Clark confirms its exit from the troubled Nigerian market

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.”