Reps move to avert exit of Kimberly-Clark from Nigeria

Reps move to avert exit of Kimberly-Clark from Nigeria

The House of Representatives has mandated its Committee on Commerce to urgently meet with the management of diapers and sanitary pad maker Kimberly-Clark, and relevant government MDAs to discuss their challenges and reasons for exiting Nigeria and proffer lasting solutions to the challenges.

This followed the adoption of a motion moved by Rep. Babajimi Benson at plenary on Wednesday.

Kimberly-Clark, which came into the important Nigerian diapers and sanitary pad market about two years ago, investing about one hundred million dollars in the form of Foreign Direct Investment (FDI) has announced a plan to close down its factory and exit.

Presenting a motion on the exit notice, Hon Benson said the firm cited unfavourable business environment, energy cost and shortage, insecurity and high cost of raw materials as their reasons for exiting the Nigerian business environment.

He said: “The company has provided over 10,000 direct and indirect jobs at their factory in Ikorodu, Lagos State, and across the country through partnerships and distributorships.

“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.”

The lawmaker stated that the federal government is making 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 adopted the motion and urged the management of Kimberly-Clark to rescind its decision to close down their business and exit the Nigerian business environment pending intervention by the House.

Source link: Daily Trust/