House of Reps to Prevent Huggies Diapers Manufacturer from Leaving Nigeria

The House of Representatives has unveiled plans to intervene in the impending exit of the multinational company Kimberly-Clark from the Nigerian market.

The company, known for its Huggies diapers and Kotex sanitary pads, has announced its intention to close its factory in Ikorodu, Lagos State, just two years after making a substantial $100 million Foreign Direct Investment (FDI) in Nigeria.

This resolution was passed following a motion sponsored by Hon. Babajimi Benson, Chairman of the House Committee on Navy, who expressed deep concern over the increasing trend of multinational companies exiting Nigeria.

Benson highlighted that these companies often cite an unfavourable business environment, high energy costs, insecurity, and expensive raw materials as primary reasons for their departure.

The House notes that Kimberly-Clark’s entry into the Nigerian market has significantly improved menstrual and childcare health by providing safe sanitary pads and diapers, Benson stated.

He emphasised the company’s contribution to over 10,000 direct and indirect jobs through its factory and partnerships nationwide.

Hon. Benson acknowledged the Federal Government’s ongoing efforts to enhance the ease of doing business and address security challenges but expressed worry about the broader economic impact of Kimberly-Clark’s potential exit.

In response, the House urged Kimberly-Clark to reconsider its decision to leave Nigeria, pending intervention by the House.

The House also mandated its Committee on Commerce to urgently engage with the management of Kimberly-Clark and relevant government agencies to address the challenges faced by the company and find lasting solutions.

West Africa Weekly had earlier reported that Kimberly-Clark’s decision to close its Ikorodu production facility comes two years after its significant investment to rejuvenate its operations in Nigeria.

Read: UN Calls for Action to Protect Ecosystems and Biodiversity

About The Author

Oluwasegun Sanusi

author

See author's posts