Huggies: Reps move to halt exit of Kimberly-Clark from Nigeria

The House of Representatives on Wednesday unveiled plans to halt the planned exit of Kimberly-Clark from the Nigerian market.

The company which invested about $100 million in the form of Foreign Direct Investment (FDI) has also announced a plan to close down its factory and exit.

The resolution was passed sequel to the adoption of a motion sponsored by the Chairman, House Committee on Navy, Hon. Babajimi Benson who solicited for the House intervention.

In his lead debate, Hon. Benson expressed grave concern that some multinational companies operating in Nigeria have been closing down their businesses and leaving the shores of the country.

“The House also notes that the corporations have cited unfavourable business environment, energy cost and shortage, insecurity and high cost of raw materials as their reasons for exiting the Nigerian business environment.

“The House further notes that Kimberly-Clark, which came into the important Nigerian diapers and sanitary pad market about two years ago, investing about $100 million in the form of Foreign Direct Investment (FDI) has also announced a plan to close down its factory and exit.

“The House is cognizant that Kimberly-Clark’s products like Huggies and Kotex have contributed positively to the improvement of menstrual and childcare health in Nigeria through the provision of safe sanitary pads and diapers for women and children.

“The House is also cognizant that the company have provided over 10,000 direct and indirect jobs at their factory in Ikorodu, Lagos State and across the country through partnerships and distributorships.

“The House acknowledges that the Federal Government is currently making concerted efforts to address issues
affecting the ease of doing business in Nigeria as well as the security challenges, despite potential genuine
reasons for exits.

“The House is worried that the exit of Kimberly-Clark will lead to massive job losses, affect the Nigerian economy and
cause difficulty in getting safe and healthy sanitary products at affordable prices in Nigeria,” he lamented.

To this end, the House urged the Management of Kimberly-Clark to rescind its decision to close down its business and exit the Nigerian business environment pending intervention by this House.

Hence, the House mandates its Committee on Commerce to urgently meet with the Management of Kimberly-Clark and relevant government MDAs to discuss their challenges and reasons for exiting Nigeria so as to proffer lasting solutions to these challenges.

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