Posted by Kimberly-Clark, maker of ‘Huggies’ diapers and other sanitary products, is planning to announce the closure of its production facility in Ikorodu, Nigeria, after investing $100 million in the country for a number of years.
This news will likely lead to further price hikes and massive layoffs.
An anonymous insider informed Nairametrics that, since the latter half of 2023, Kimberly-Clark has been functioning below capacity as a result of the difficult economic circumstances in Nigeria.
In 2019, after conducting a business assessment, the firm shut down operations in Nigeria. In 2022, with the inauguration of the $100 million facility in Ikorodu, Lagos State, activities restarted. This closure marks the second shutdown for the company in Nigeria.
“The expense of running is rather considerable. In addition to maintenance, our fixed expenditures exceed N500 million per month, with over N100 million going toward fueling the gas engine. The business only had two assets last year, and they didn’t even survive half a year.
A reduction from four shifts to two was necessary for the firm earlier this year. Due to the present economic circumstances, we no longer operate on Friday, Saturday, and Sunday, although we used to run all day, every day.
External recruiting is already subject to a ban. The insider claimed that since the firm is not earning a profit, it is searching for methods to lower costs.
As of May of this year, over fifteen multinational corporations had already indicated their intention to leave the Nigerian market, including GSK, Procter & Gamble, and others.
Concerns have been voiced by experts over the persistent departure of multinational corporations from Nigeria.
According to the Nigeria Employers’ Consultative Association, fifteen international corporations have left Nigeria, resulting in the loss of 2,000 jobs.