PZ Cussons Plans Exit After 48% Sales Drop Due to Inflation, Naira Devaluation
Thank you for reading this post, don't forget to subscribe!PZ Cussons Nigeria has responded to reports about a potential exit from Africa, stating that it has not yet received formal notice from its UK-based parent company regarding the divestment. While acknowledging that discussions are ongoing, the company assured that it would provide clarity as soon as the decision becomes official.
The consumer goods manufacturer attributed the decision to Nigeria’s harsh economic conditions, including severe inflation and the devaluation of the naira, which have severely impacted its operations. PZ Cussons said its parent company is assessing its global presence, and Nigeria’s macroeconomic volatility is driving the need for a strategic review.
Although the Securities and Exchange Commission (SEC) recently rejected PZ Cussons’ bid to acquire minority shares in its Nigerian subsidiary, the company remains focused on addressing its financial challenges.
This comes as another multinational, following the exits of GSK and Sanofi, signals the potential departure from Nigeria after over a century of operations. The company is carefully evaluating its next steps as it navigates the country’s turbulent economic landscape.
