Kimberly-Clark Corporation, the American multinational personal care company, has announced the closure of its Nigerian operations, effective immediately. The decision comes after nearly 15 years of operations in the country, during which the company established itself as a leading manufacturer of hygiene and personal care products, including Huggies diapers and sanitary pads.
According to sources familiar with the matter, the company’s production facility in Ikorodu, Lagos, has been operating below capacity since late 2023, due to the challenging economic environment in Nigeria. Despite efforts to navigate the difficulties, the company has been forced to downsize its workforce, with approximately 90% of employees laid off.
Industry analysts attribute the company’s struggles to the harsh economic conditions in Nigeria, including high energy costs, increased raw material costs, and reduced demand from customers. Despite initial success in the market, the company’s fortunes began to decline in late 2022, with sales growth and market share deteriorating significantly.
Kimberly-Clark’s exit from Nigeria raises concerns about the viability of foreign investment in the country’s manufacturing sector. The company’s experience highlights the challenges faced by businesses operating in Nigeria, including infrastructure deficits, policy uncertainty, and intense competition.
In a statement, a company spokesperson confirmed the closure, citing “unfavorable economic conditions” as the primary reason. The spokesperson expressed appreciation for the support received from employees, customers, and partners during the company’s tenure in Nigeria.
The closure of Kimberly-Clark’s Nigerian operations marks a negative development in the country’s business landscape. As the company winds down its operations, attention will turn to the impact on employees, customers, and the broader industry.
What they are saying
“This closure is a significant blow to Nigeria’s manufacturing sector and a clear indication of the challenges faced by businesses in the country.” – Dr. Muda Yusuf, Director General, Lagos Chamber of Commerce and Industry
“The exit of Kimberly-Clark from Nigeria is a worrying trend that highlights the need for policy reforms to attract and retain foreign investment in the country.” – Mr. Segun Ajayi-Kadir, Director General, Manufacturers Association of Nigeria
“This development will likely lead to job losses and reduced access to essential consumer goods, further exacerbating the economic hardship faced by Nigerians.” – Dr. Biodun Adedipe, Economist and Consultant
The Future of Huggies
While Kimberly-Clark’s exit from Nigeria marks the end of an era for Huggies in the country, the brand’s future remains uncertain. Industry analysts predict that the company may explore alternative distribution channels to maintain a presence in the Nigerian market.
