Reckitt Reaffirms Commitment to Expanding Operations in Nigeria Amid Economic Recovery

Reckitt, the British consumer goods giant, has expressed confidence in deepening its operations in Nigeria, signaling optimism about the country’s economic recovery after a turbulent period that affected the retail sector. While several multinational companies, including Procter & Gamble and Diageo, have reduced or closed their operations in Nigeria due to the challenging economic environment, Reckitt remains committed to its long-term growth in the region.

Akbar Ali Shah, Reckitt’s General Manager for Sub-Saharan Africa, emphasized that despite the tough times, the company has successfully navigated the difficulties and plans to make Nigeria a more central part of its African strategy. “We’ve seen a lot more economic stability in the last year than we did in previous years,” Shah stated.

Shah also pointed to the positive effects of the Central Bank of Nigeria’s (CBN) market-driven foreign exchange reforms, which have eased access to dollars for businesses. This shift has allowed Reckitt to repatriate profits from Nigeria in 2024 for the first time in several years.

Looking ahead, Shah revealed that Reckitt has a comprehensive five-year expansion plan for its Lagos-based factory, including the construction of new facilities to increase both production volumes and exports to other African markets.

Reckitt, which has maintained a strong presence in Nigeria for decades, has become synonymous with well-known household products, from Dettol antiseptic to Strepsils lozenges. Shah explained that the company’s strategy in Nigeria includes reducing reliance on imported ingredients, which in turn reduces the need for foreign currency. As a result, 9 out of 10 products sold by Reckitt in Nigeria are now manufactured locally, after years of establishing a network of local suppliers for raw and packaged materials.

In response to rising inflation, Reckitt has also introduced smaller product packaging tailored to the Nigerian market, a move Shah describes as “Nigeria-specific innovation” aimed at making products more affordable for the mass market.