Kimberly-Clark, the renowned producer of the popular diaper brand Huggies and various sanitary pads, is set to announce the closure of its production facility in Ikorodu, Nigeria, after investing $100 million in the country over several years.
This decision marks another blow to Nigeria’s already struggling economy and workforce.
An anonymous insider revealed to Nairametrics that Kimberly-Clark has been grappling with operating below capacity since late 2023, citing Nigeria’s challenging economic conditions as the primary reason. This closure is the second for the company in Nigeria; it previously halted operations in 2019 following a business review but resumed in 2022 with the launch of the new facility in Ikorodu, Lagos State.
“The running costs are extremely high. Our fixed monthly expenses exceed N500 million, and we spend about N100 million on gas consumption alone for powering the gas engine, aside from maintenance. The company has two assets, and last year, these assets were non-operational for about 90 days out of 365,” the source disclosed.
Due to the economic situation, the company earlier this year had to reduce its workforce from four shifts to two. Previously operating 24/7 year-round, Kimberly-Clark now does not operate on Fridays, Saturdays, and Sundays. An embargo on external recruitment is already in place as the company seeks ways to cut costs amid unprofitability.
This development adds Kimberly-Clark to the growing list of over 15 multinational companies, including Procter & Gamble and GlaxoSmithKline (GSK), that have exited Nigeria between last year and May this year. The continued departure of these companies has raised significant concerns among experts about Nigeria’s economic stability and attractiveness to foreign investors.
The Nigeria Employers’ Consultative Association reported that these exits have resulted in the loss of 2,000 jobs, underscoring the profound impact on the country’s employment landscape.
