The American multinational personal care corporation Kimberly-Clark, has announced plans to exit Nigeria after almost 15 years of operations.
The announcement is the latest of the series of multinational companies that has exited the country since President Bola Tinubu took office a year ago.
The companies cited Tinubu’s economic policies as reason for their exit.
The company in a statement on Friday said it it closing its manufacturing facility and commercial office in Lagos and will no longer manufacture, market, or sell its Huggies® and Kotex® products in the country.
“Kimberly-Clark today announces it has made the difficult decision to exit its business in Nigeria after almost 15 years, due to recently refocused company strategic priorities globally as well as economic developments in the country.
“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,”
The company is said to be leaving Nigeria due to unfavourable economic conditions, including high energy costs, expensive raw materials, and reduced customer demand.
The company invested $100 million in a production facility in Ikorodu, Lagos state, but has been producing below capacity since late 2023 due to the harsh economic environment. The high production cost stems from the increased raw material cost since it is import-based, and the company has been unable to sustain operations profitably.
Kimberly-Clark has operated in Nigeria for almost 15 years. The company initially started operations in Nigeria in 2012 but ceased activities after five years in 2019 due to unfavourable economic conditions.
It resumed operations in 2021.
