National Telescope national telescope newspaper
By Funmi Ojo
Kimberly-Clark, a well-known American multinational personal care corporation, has announced its decision to exit Nigeria after 15 years of operations in the country.
The announcement was made on Friday in a statement by the company. The statement read, “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.”
According to the statement, the company 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.
“Consistent with Kimberly-Clark’s value of care, the company’s top priority will be to fulfill its obligations and ensure that employees and partners are treated with fairness and respect,” the statement added.
The decision to leave Nigeria is attributed to unfavourable economic conditions, including high energy costs, expensive raw materials, and reduced customer demand.
Kimberly-Clark invested $100 million in a production facility in Ikorodu, Lagos State, but the facility has been producing below capacity since late 2023 due to the harsh economic environment. The high production cost stems from the increased cost of imported raw materials, and the company has been unable to sustain operations due to lack of profitability.
Kimberly-Clark initially started operations in Nigeria in 2012 but ceased activities after five years in 2019 due to economic challenges. The company resumed operations in 2021.
