Once more, Nigerian lawmakers transfer to probe mass exit of international firms

The Home of Representatives has resolved to arrange a particular committee to research the mass exit of multinational firms from Nigeria.

The yet-to-be-constituted committee is to probe the reason for the mass exit of the businesses and devise means to halt the development.

The decision was a sequel to a movement moved by Babajimi Benson (APC, Lagos) on the exit of Kimberly-Clark, an American multinational shopper items and private care company.

That is the second time the Home would transfer to probe this development throughout the final 4 months.

In February, the Home moved an analogous movement bur no motion has been taken so far.

The movement

Mr Benson, in his movement, highlighted the exit of the Kimberly-Clark lower than three years after it invested $100 million in organising in Nigeria.

He expressed worries over the development of firms leaving the nation attributable to a hostile working setting, excessive value of energy, and excessive value of uncooked supplies.

The legislator, who represents Ikorodu Federal Constituency of Lagos State, stated the corporate employs 10,000 folks in direct and oblique jobs at their manufacturing facility in Ikorodu, Lagos State.

“The exit of Kimberly-Clark will result in large job losses, have an effect on the Nigerian financial system, and trigger issue in getting protected and wholesome sanitary merchandise at reasonably priced costs in Nigeria,” he stated.

He added that “Kimberly-Clark’s merchandise like Huggies and Kotex have contributed positively to the development of menstrual and childcare well being in Nigeria by means of the availability of protected sanitary pads and diapers for girls and kids.”

Mr Benson proposed that the administration of Kimberly-Clark ought to rescind its resolution to shut down its enterprise and exit the Nigerian enterprise setting pending intervention by the Home.

He additionally prayed the Home to mandate the Committee on Commerce to urgently meet with the administration of Kimberly-Clark and related authorities MDAs to debate their challenges and causes for exiting Nigeria to proffer lasting options to those challenges.

Debate

Talking on the movement, Isiaka Ibrahim (APC, Ogun) stated multinational firms are exiting all sectors of the financial system, together with the oil and gasoline sector.

He said that the movement shouldn’t be restricted to solely Kimberly-Clark however all multinationals which might be about to go away the nation.

Mr Isiaka stated the Home ought to beg the MNCs if it is going to assist maintain them within the nation.

Consequently, he moved an modification to the movement {that a} particular committee be constituted to conduct a holistic investigation into the exit of multinational firms from the nation.

The movement was adopted as amended when it was put to vote by the presiding officer, Deputy Speaker Ben Kalu.

MNCs that exited from Nigeria

PREMIUM TIMES reported the exit of US shopper items powerhouse Procter & Gamble (P&G) from Nigeria in 2023.

P&G, the maker of iconic manufacturers together with Pampers, Gillette, Ariel, All the time, and Oral-B, might incur costs anyplace between $1 billion and $1.5 billion after-tax from restructuring its operations in Nigeria and Argentina, two markets the place enterprise has been problematic for the company.

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International firms, particularly producers and vitality corporations, have been exiting in droves, most citing the present international change crunch and devaluation of the naira, which suggests decrease earnings for international firms in greenback phrases.

In March 2023, Unilever introduced an finish to the manufacturing of its homecare and skin-cleansing merchandise within the nation as a result of these classes are “margin dilutive” and the choice wanted to be taken to make its Nigerian operation worthwhile.

Additionally, British pharmaceutical large GlaxoSmithKline stated it was terminating its manufacturing operations in Nigeria, opting as a substitute for a third-party distribution mannequin.