Very unfortunate to read that the maker of Huggies is exiting Nigeria: “Kimberly-Clark, a leading manufacturer of diapers and sanitary pads, is set to announce the imminent shutdown of its production facility in Ikorodu, Lagos, Nigeria. This decision comes just two years after the company invested $100 million…[The company] attributed the shutdown to severe economic conditions that have impacted production and profitability. “
In 2022, Kimberly-Clark inaugurated a new $100 million production facility in Ikorodu, marking a significant investment aimed at reviving its presence in the Nigerian market. Despite initial success, the company has struggled with several challenges since late 2022.
According to the sources, the Ikorodu plant has been operating below capacity from late 2023 into 2024 due to the harsh economic environment in Nigeria. The company has faced escalating energy costs, high raw material expenses, and reduced customer demand, leading to a substantial financial burden.
In the Igbo Nation, you do not tell a deaf person that war has started because when a war does start, everyone will know, because it will be self-evident.
As always, I like to offer suggestions because that is what village boys do: Nigeria MUST subsidize energy for the industrial sector even if it mandates for residential and commercial customers to pay the full rates. There is no way companies in Nigeria could compete against global products if they are exposed to the high cost of energy (via expensive diesel) and electricity (reflective tariff).
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Yes, besides the expensive US dollars, energy is another issue. Our government should visit these factories and chat with them. This is getting into a dangerous phase because when people lose their jobs, many who depend on them drop in the economic ladder. And the big one: Saving the factories is saving the Naira!
Kimberly-Clark to Shut Down Lagos Production Facility, Citing High Cost of Operation
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