Harsh Economy: Another Manufacturer ‘Huggies’ Makers Exits Nigeria After 15 Years

An American multinational personal care corporation Kimberly-Clark, has announced its plans to exit Nigeria after almost 15 years of operations.

This was revealed in a statement on Friday by the company.

“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, ” the statement said.

It said 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 fulfil its obligations and ensure that employees and partners are treated with fairness and respect,” the statement added.

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.