Global consumer goods manufacturer, PZ Cussons has debunked rumours of the company pulling out its operations in Nigeria. Chief Executive Officer of PZ Cussons Nigeria Plc, Christos Giannopoulos disclosed this when he said reports about the company’s intention to pull out are untrue.
While describing the viral reports about the company’s ‘unannounced pullout’ as false, Giannopoulos said regardless of the tough economic conditions, PZ Cussons remains committed to serving Nigerians.
The PZ CEO explained that the trading statement issued to the London Stock Exchange (LSE) was clear on PZ Cussons’ continued operations in Nigeria. He stated,
“While these conditions prevail, we will maintain our strong market shares in key product categories in Nigeria until growth returns to the market.
“This year, 2019, we shall be celebrating 120 years of making life better and adding value to Nigeria. In our 120 years of doing business in Nigeria, we have faced different conditions and come out stronger at the end of each phase.”
PZ Cussons had disclosed that its financial performance for full-year 2019 (which ends in May) will not be very profitable. This situation, according to the company, is largely due to an underwhelming performance by its Nigerian subsidiary, PZ Cussons Nigeria Plc.
Sluggish demand and a number of other economic challenges in the country combined to cause poor performance. To this end, it expects profit before tax to be around £70 million and profit after tax to stand at £32.8 million.
Recall that Nairametrics reported back in September 2018, PZ Cussons subtly hinted at low profitability prior to publishing its financial statement for the quarter ended August 31st of last year.
A statement by the company had acknowledged that PZ Cusson’s entire global operations were experiencing challenges in different markets, especially in Nigeria where people’s disposable income is lowered due to the upcoming general election in the country.
The company then issued yet another trading update in December last year, this time warning that its half-year financial result (which ended in November), could entail a loss.
Nigeria needs urgent economic diversification – AfDB
The AfDB said that the diversification of the Nigerian economy had become important for it to respond favourably to the emerging challenges of the 21st century.
The African Development Bank has stated that Nigeria, Africa’s largest economy, needs urgent economic diversification to move the country from a single income source (oil and minerals) towards multiple income sources.
This was disclosed by Prof. Oyelaran-Oyeyinka Oyebanji, Senior Special Adviser on Industrialisation at African Development Bank (AfDB), at the 22nd Founder’s Day Lecture of the Igbinedion University, the first private university in Edo state, on Monday.
What the AfDB said about diversification
“In pursuit of long-term recovery and sustainable development, Nigeria needs urgent economic diversification. Nothing is more poignantly demonstrative of the danger of over-reliance on a single or narrow range of commodities than the recent crash in oil price we saw in 2020 due to the COVID-19.
Economic diversification entails a shift away from a single income source (oil and minerals) toward multiple income sources from an increasing spectrum of sectors, products and markets,” he said.
In case you missed it
The International Monetary Fund (IMF) stated earlier this year that economic diversification was important to Nigeria and critical for her economic recovery.
They said the limited gains from inward-oriented policies in terms of creating jobs and improving living standards suggested that Nigeria needed to have a change of strategy. It was pointed out that in order to accommodate a growing number of young people entering the labour market, Nigeria would need to create at least 5 million new jobs each year over the next decade.
Ghana-Nigerian traders dispute: FG to send delegation to Ghana
The delegation will be led by the Minister of Trade, Niyi Adebayo, and comprised of other private stakeholders.
The Nigerian Government will send a delegation led by the Minister of Trade, Niyi Adebayo, to Ghana to end the crisis between Nigerian traders in Ghana and local authorities—an issue that started last year before the Ghanaian Presidential elections.
The delegation was ordered by the Presidency as disclosed in a statement by the trade ministry on Monday evening.
The statement revealed that the delegation would be comprised of private stakeholders also who would be sent to dialogue with Ghanaian trade authorities to find a solution to the crisis.
The meeting between both parties will be held between May 31 and June 1, 2021.
What you should know
Recall Nairametrics reported last year that Ghana’s Foreign Minister, Shirley Ayorkor Botchwey, said that Nigeria’s border closure in 2019 hurt Ghanaians and nearly bankrupted many Ghanaian export businesses after their goods were stuck at the Seme Border for months, reacting to the shutdown of Nigerian-owned shops by Ghanaian authorities last year.
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