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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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VenturesNow

Israel-based oil and gas firm, NewMed, signs exploration deal with Morocco’s energy ministry

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Israel-based oil and gas firm, NewMed has signed a deal with Morocco’s energy and mining ministry and Adarco Energy for offshore natural gas exploration and production in Morocco.

NewMed made the announcement on Tuesday adding that it will collaborate with Adarco, and each will have a 37.5% stake in the Boujdour Atlantique licence.

NewMed CEO Yossi Abu said, “for a long time now we have recognised a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors.”

According to the deal, the remainder of 25% is granted to Morocco’s National Office of Hydrocarbons and Mines, in accordance with the Hydrocarbon Law of Morocco.

NewMed is the main stakeholder in Israel’s huge Leviathan offshore gas field and is looking to merge with Capricorn Energy to create a gas producer focused on Israel and Egypt.

Statista reports that in 2020, approximately 23.3 billion Moroccan dirhams (MAD) of gas and fuel oils were imported into Morocco. This was equivalent to 2.6 billion U.S. dollars and represented a decrease from the previous year when roughly 38.8 billion MAD (4.3 billion U.S. dollars) of oils were imported into the country.

Overall, Spain was the main trade partner in Morocco in terms of gas and fuel oil imports.

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Nigeria’s oil company, NNPC, signs separate gas pipeline deals with Ghana, Guinea, others

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Nigeria’s oil company, the NNPC have signed separate deals with the national oil companies of Ghana, Gambia, Guinea, Guinea Bissau and Sierra Leone in furtherance of the planned Nigeria-Morocco Gas pipeline project.

The Group Chief Executive Officer of the NNPC, Mele Kyari; highlighted the roles played by the participating countries to make the planned commencement of the project to fruition.

“Today, we will be attaining another feat by signing five MoUs with the national oil companies and relevant entities from Gambia, Ghana, Guinea, Guinea Bissau and Sierra Leone.

“From inception of the project to this stage, concerted efforts have been made by the governments of Nigeria and the Kingdom of Morocco, which led to the very commendable achievements recorded thus far.

“As the strategic vision of our great leaders gains momentum, I would like to express our appreciation to His Royal Majesty, King Mohammed VI of Morocco and His Excellency, President Muhammadu Buhari of Nigeria for entrusting NNPC Limited with this strategic project,” he stated.

He added: “NNPC Limited will facilitate the continuous supply of gas and provide other enablers such as the required land for the first compressor station to be deployed in Nigeria, which is among the 13 stations earmarked along the pipeline route.”

The Nigeria-Morocco gas pipeline mega-project had been first discussed during the official visit of King Mohammed VI of Morocco in December 2016 to President Buhari in Abuja.

Nigeria and Morocco signed MoU for the gas pipeline in September which would link Nigeria to Morocco as well as supply West Africa and Europe.

The Nigeria-Morocco gas pipeline mega-project had been first discussed during the official visit of King Mohammed VI of Morocco in December 2016 to President Buhari in Abuja.

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