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Procter & Gamble (P&G) shuts Nigerian plant

The leading FMCG (Fast-moving Consumer goods) is set to shut the production plant situated in Agbara Industrial Estate, Ogun State, PREMIUM TIMES can report

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The leading FMCG (Fast-moving Consumer goods) is set to shut the production plant situated in Agbara Industrial Estate, Ogun State, PREMIUM TIMES can report.

The company expanded its footprint in Nigeria in June 2017 with the commissioning of the state of the art production line which reportedly cost the firm about $300 million to complete.

The plant is for its ‘Always’ and Pampers brand of sanitary pads and diapers.
Sources at the firm said about 120 workers are being laid off as part of the shut down with some of them already receiving their disengagement letters which is to commence next month.

“About 30 staff will be left who may either be outsourced or deployed to our only remaining plant in Nigeria,” a company source told PREMIUM TIMES.

The company, a multinational FCMG with stakes in about 180 countries of the world, is the producer of Always sanitary pad, Pampers, Ariel detergent, Oral B toothpaste, Gillete shaving stick, among other products in the Nigerian market.

The shutdown is coming barely a year after the production line was commissioned by Vice President Yemi Osinbajo and Governor Ibikunle Amosun of Ogun State.

Read Also: Nigerian-based Kobo360 raises US$1.2 million seed round

Insiders familiar with the development told PREMIUM TIMES that the company is battling with the challenge posed by government policies that regulate importation of raw materials for its production. A source explained that the cost of importing raw materials was becoming unbearable for the company, which has refused to involve in shady deals in order to cheat the system and ease importation.

“It is so expensive to import these raw materials which are not produced in Nigeria. Other companies take the short cut by maneuvering the system, but we cannot,” a top official of the troubled firm disclosed.

Similarly, another factor said to be responsible for the shutdown was the unhealthy competition being faced by the company.

“Our competitors invested much less in their factory, can maneuver their way in the system, and thus produce and sell for much less.We cannot do that. Our investment in Agbara is arguably the largest single investment by a non-oil firm in Nigeria. But we just have to shut it. The loss is much,” the source said.

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Ghana’s finance minister, Ken Ofori, to meet Chinese officials over debt restructuring

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Ghana’s finance minister Ken Ofori-Atta will meet Chinese officials on Wednesday to discuss a proposed restructuring of Ghana’s debt, a source has revealed.

The source said, “the talks are expected to focus on ways to reduce Ghana’s debt burden and secure additional financing assurances for the country’s economic programme.”

The source added that the Ghanaian government is currently preoccupied with securing IMF board approval, with the fine details of debt treatment operations to follow later, the source added.

Ghana has been struggling with its worst economic crisis in a generation and secured a staff-level agreement with the IMF in December for a $3 billion loan. Still, approval is contingent on it restructuring its debt of 575.7 billion cedis ($47.6 billion).

The West African country is one of several cash-strapped countries facing unprecedented delays in securing bailouts as China and Western economies clash over how to structure debt relief deals.

China is Ghana’s biggest bilateral creditor with about $1.7 billion of debt and the Chinese delegation visited Ghana this month for initial debt talks which the finance ministry said were “cordial and fruitful.”

In addition to restructuring its domestic debt, Ghana has requested that its bilateral debt be restructured under the common framework platform supported by the Group of 20 major economies.

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Zambian authorities show concern over market abuses in energy sector. Here’s why

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Zambian authorities are concerned about market abuses and social injustices in the energy sector, specifically regarding renewable energy technologies.

The permanent secretary of the country’s Commerce, Trade, and Industry, John Mulongoti, made the position at the commemoration of World Consumer Rights Day where he revealed that the concern was born out of outcry by consumers over the low quality as well as high prices of energy-efficient and renewable energy technologies in the market.

According to Mulongoti “the energy sector is prone to market abuses and social injustices as evidenced by consumers’ concerns over the low quality as well as high prices of energy efficient and renewable energy technologies on the market.

“It is, therefore, my expectation that this event will not only provide an opportunity for increasing consumer awareness of their basic rights but also create a platform for consumers to air their concerns on market abuses and social injustices that they face as they access services from not only the energy sector but also other sectors as well,” Mulongoti said.

“You will agree with me that Zambia has not been spared from experiencing the adverse impact of climate change. We, therefore, need to hold hands together to mitigate this challenge.

“As we continue to enhance trade and investment for the growth of our economy, the government is cognizant of the need to ensure that economic growth happens in a sustainable manner,” Mulongoti said.

Mulongoti said the government will work to create resilient, climate-friendly economies in addition to advocating that both businesses and consumers embrace technologies and solutions that can help mitigate climate change.

The administration of President Hakainde Hichilema has made moves to focus on renewable energy, in January, state-owned power utility Zesco signed an agreement with the United Arab Emirates renewable energy company Masdar to develop solar projects worth $2 billion.

Zambia, like many other African countries, faces a myriad of environmental and socio-economic
challenges that include land degradation, deforestation, and regular droughts which shift to renewable energy strategy.

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