The House of Representatives has taken steps to stop the exit of
Kimberly-Clark, a diapers and sanitary pad company, which invested about $100 million in the form of Foreign Direct Investment (FDI), from the Nigerian market.
This followed the adoption of a motion moved by the member representing Ikorodu Federal Constituency of Lagos State, Hon. Babajimi Benson, at plenary on Wednesday.
Moving the motion, Benson noted that some multinational companies operating in Nigeria have been closing down their businesses and leaving the shores of the country.
He also noted that the business organisations have cited unfavourable business environment, high energy cost and shortage, insecurity and high cost of raw materials as their reasons for exiting the Nigerian business environment.
The lawmaker said Kimberly-Clark, which came into the important Nigerian diapers and sanitary pad
market about two years ago, investing about $100m in the form of FDI), has also announced a plan to close down its factory and exit the country.
According to him, Kimberly-Clark’s products like Huggies and Kotex have contributed positively to the
improvement of menstrual and childcare health in Nigeria through the provision of safe sanitary pads and diapers for women and children.
Benson, who is the chairman, House Committee on Defence, said the company has provided over 10,000 direct and indirect jobs at its factory in
Ikorodu area of Lagos State, and across the country through partnerships and distributorship.
Benson, therefore, expressed worry that the exit of Kimberly-Clark will lead to massive job losses, and will affect the Nigerian economy and cause difficulty in getting safe and healthy sanitary products at affordable prices in Nigeria.
He, however, acknowledged that the Federal Government is currently making concerted efforts to address issues
affecting the ease of doing business in Nigeria as well as the security challenges, despite potential genuine reasons for exit by the foreign firms.
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