Connect with us

VenturesNow

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

Published

on

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

VenturesNow

Ethiopia might devalue currency to secure IMF loan

Published

on

Ethiopia may need to decide on a big currency devaluation soon to get a rescue loan from the International Monetary Fund (IMF).

In December, East Africa’s most populous country went bankrupt, making it the third African country in as many years to not pay its debts. The country already had high inflation.

Ethiopia hasn’t gotten any money from the IMF since 2020, and its last loan deal with the fund fell through in 2021. In late 2022, the federal government and a rebellious regional authority made a deal to end a cold war that had been going on for two years.

Although the IMF has not said that currency reform is necessary for its backing, it however maintained that progress was made during its most recent visit. However, the Fund usually favours flexible, market-determined exchange rates. Ethiopia has requested $3.5 billion of support from the IMF, sources told Reuters last year.

The birr currently trades at between 117 and 120 per dollar on the black market, which is more than double the official rate of about 56.7. This is because there is a constant lack of foreign cash and the exchange rate is tightly controlled.

“It seems that the Ethiopian authorities have found accepting the demands of the IMF hard,” said Abdulmenan Mohammed, an Ethiopian economic analyst based in Britain.

“The Ethiopian authorities are worried about the devaluation of the birr, (which) would have serious negative economic repercussions, including soaring inflation… and surging foreign currency denominated debts in terms of birr.”

Early in 2021, Ethiopia asked the G20’s Common Framework to restructure its debt. This was set up in response to the COVID-19 pandemic to include new creditor countries like China and India. Other African countries like Tunisia and Zambia also suffered a similar fate with their foreign debt at the time.

As of the end of March, Ethiopia’s foreign debt totals $28.2 billion. According to Boston University’s Chinese Loans to Africa Database, the country’s biggest bilateral creditor, China, agreed to stop collecting its debts in August 2023. From 2006 to 2022, China promised to give the country $14 billion.

Continue Reading

VenturesNow

Nigerian govt to save N1.5tn from removal of electricity subsidy

Published

on

The Nigerian government says a recent increase in the price of electricity for Band A customers to N1.5tn means it could save more this year.

The government also said that about 2.5 million meters would be installed this year to close the metering gap across the country and make sure that people pay the right amount for electricity.

The Federal Ministry of Power, in a document made public by Bolaji Tunji, who is the media assistant to the power minister, on Wednesday evening said that the recent tariff change would save the country N1.5tn.

It said, “FG (Federal Government) to save N1.5tn with tariff adjustment. FG still subsidising Bands below A. Pricing change will help improve liquidity to the NESI (Nigeria Electricity Supply Industry).

“Discos (power distribution companies) will be sanctioned for supplying less than 20 hours to Band A consumers.”

Electrical consumers in the Band A group, which makes up about 15% of the country’s 12.82 million power users, no longer get any subsidies on their bills. Those affected would now pay N225 per kilowatt-hour, which is about 240% more than the old rate of N68/kWh.

In reaction, manufacturers and organized labour spoke out against the tariff increase that about 1.9 million consumers will have to pay. The increase was passed and announced by the Federal Government on April 3, 2024.

For the past few months, the terrible state of the electricity supply has gotten even worse because gas producers to gas-fired thermal power plants have stopped sending gas to those plants because they owe $1.3 billion in debt.

Meanwhile, the argument around subsidies of essential products and services in Africa remains active with some analysts positing that the earning power and GDP of most countries in the continent puncture the likely gains of a no-subsidy regime, given the lack of economic means by a large percentage of the public.

Continue Reading

EDITOR’S PICK

Uncategorized34 mins ago

Ghana’s VP Bawumia throws weight behind anti-LGBTQ campaign

Ghana’s Vice President, Dr. Mahamudu Bawumia, has thrown his weight behind those against the LGBTQ community in the country. Bawumia,...

Uncategorized44 mins ago

Kenyan marathoner Kipchoge upbeat about winning third Olympic gold

Kenya’s double Olympic gold medallist, Eliud Kipchoge, is in a confident mood that he can win a historic third successive...

Uncategorized1 hour ago

Hichilema sacks Zambia Public Procurement Authority boss with immediate effect

Few weeks after sacking the Accountant-General, Kennedy Muso, and Controller of Internal Audit at the Ministry of Finance and National...

Uncategorized9 hours ago

Nigeria: 812 killed, 855 abducted by criminal elements in March alone— Report

A security and intelligence consulting firm in Nigeria, Beacon Security and Intelligence Limited, has released a damning report in which...

Musings From Abroad24 hours ago

Russia begins diesel exports to Sudan as EU boycott bites

London Stock Exchange Group (LSEG) data shows that Russia has started sending fuel to troubled North African country, Sudan. The...

Uncategorized24 hours ago

Ghanaian fintech Zeepay raises equity funds to support African, Caribbean expansion

Ghanaian fintech, Zeepay, has announced securing a round of equity investment aimed at supporting its expansion plans in Africa and...

VenturesNow24 hours ago

Ethiopia might devalue currency to secure IMF loan

Ethiopia may need to decide on a big currency devaluation soon to get a rescue loan from the International Monetary...

Musings From Abroad24 hours ago

US wants more funding in response to Sudan conflict

The United States Special Envoy to Sudan says that Washington will push for more than $100 million in extra funding...

Uncategorized1 day ago

South African Police arrest six in connection with killing of footballer Luke Fleurs

The South African Police have announced the arrest of six in connection with the killing of Kaizer Chiefs defender, Luke...

VenturesNow1 day ago

Nigerian govt to save N1.5tn from removal of electricity subsidy

The Nigerian government says a recent increase in the price of electricity for Band A customers to N1.5tn means it...

Trending