Procter & Gamble’s Exit Not an Anomaly, Signals Potential Trend, Says MAN Director General

In an exclusive interview with Infostride News, Mr. Ajayi Kadiri, the Director-General of the Manufacturers Association of Nigeria (MAN), shared insights into the recent departure of Procter & Gamble (P&G) from Nigeria. Expressing his lack of surprise at P&G’s exit, Mr. Kadiri conveyed a foreboding outlook, suggesting that more manufacturing firms might follow suit unless the underlying issues are promptly addressed within the country.

Speaking on Channels Television’s Sunrise daily program, Mr. Kadiri emphasized the critical need for addressing the challenges faced by the manufacturing sector in Nigeria. He underscored the importance of the government making strategic decisions to foster industrialization, stating, “We have always said that manufacturing in any economy is a strategic choice; the government has to make up its mind whether it wants its country to be an industrialized one.”

Drawing attention to the broader implications, the MAN Director-General pointed out that the departure of international manufacturing giants like GlaxoSmithKline (GSK) and P&G also concealed the less-publicized closures of numerous local manufacturing firms in recent times. This revelation shed light on the vulnerability of the entire manufacturing ecosystem, irrespective of whether the companies were foreign or local entities.

Expressing concern over the situation, Mr. Kadiri urged the government to prioritize local manufacturers, highlighting the fact that they lack alternative options or foreign relocation strategies. “The big ones that are exiting are those multinationals, and I think this should send a clear signal to the government that we need to guide what we promote. Foreign Direct Investment (FDI) should come secondary to empowering the local manufacturer because that is what is enduring and can allow you to scale,” he asserted.

Addressing the proposed N75 billion loan by the federal government to support 75 manufacturing firms, Mr. Kadiri raised skepticism about its adequacy. With over 2500 registered manufacturers across the country, he deemed the allocated figure as a mere drop in the ocean compared to the extensive needs and numbers within the manufacturing sector. Furthermore, he called for a comprehensive review of the interest rate attached to the loan, advocating for a reduction from 9% to a more favorable rate, possibly around 5%.

The backdrop to these concerns lies in the recent announcement by Procter & Gamble to cease operations in Nigeria and transition to an import-only business model. The company cited challenges related to operating as a USD-denominated entity and other macroeconomic issues as the primary reasons for its decision.

As the manufacturing landscape in Nigeria faces these challenges, Mr. Ajayi Kadiri’s candid insights underscore the urgent need for strategic governmental interventions to safeguard the industry and foster sustainable growth. The departure of major players like P&G serves as a stark reminder of the delicate balance required to sustain a thriving manufacturing sector in the face of economic complexities. Infostride News will continue to monitor and report on developments in Nigeria’s manufacturing landscape.