In February 2009, when Laurent Philippe—a Procter & Gamble (P&G) Group
President overseeing Africa, the Middle East and Eastern Europe—announced the
company’s intention to invest significantly in Nigeria through 2015, executives
around the world sat up and took notice1. Though P&G entered Nigeria in the
early 1990s and maintains a factory in the bustling southern university town of
Ibadan, its Nigeria involvement prior to the announcement could best be described
as exploratory, with a portfolio of only four brands in Nigeria. Now, however, P&G
appears more committed to mounting a meaningful challenge to Unilever, whose
brands are ubiquitous in Nigeria.
The U.S. consumer packaged goods giant is not alone in its interest in Nigeria. The
Nigerian market is a top-level issue among multinational corporations. From India’s
Godrej CPL to South Africa’s Sanlam and Tiger Brands to GE, CEOs and boards
are asking management teams to draw up plans to enter or upgrade their Nigeria
operations. Whether in the business lounge in Dar es Salaam Airport or smart
restaurants in Paris, executives are huddling about how to invest in Nigeria—a
remarkable shift from the perspective in board rooms in the 1990s and early
2000s. For senior executives, the prospect of investing in Nigeria raises an immediate
question: What is so attractive about Nigeria now?