Saturday, September 21, 2024

Coca-Cola plans $1 billion investment to support Nigeria operations

The investment is expected to support various value chain areas, including suppliers, distributors, retailers, and recyclers.  

Coca-Cola plans to invest $1 billion in its Nigeria operations over the next five years, the company said after a meeting between President Bola Tinubu and senior executives of the soft drinks maker on Thursday.

Tinubu met John Murphy, president and chief financial officer of Coca‑Cola, Zoran Bogdanovic, CEO of Coca-Cola, and several other company officials as he seeks to attract investment into the economy.

The Coca-Cola System in Nigeria, comprised of Coca-Cola Nigeria Limited and its authorized bottler, Nigeria Bottling Company (NBC), announced plans to expand its investments in Nigeria.

The company said the investment builds on the System’s long-standing involvement in Nigerian communities. Over the last 10 years, Coca-Cola Hellenic Bottling Company, known locally as Nigerian Bottling Company, has invested $1.5 billion in Nigeria.

The investment is expected to support various value chain areas, including suppliers, distributors, retailers, and recyclers.

Following the meeting, Murphy indicated that “the investment highlights our system’s efforts to drive scalable initiatives while also preserving the value of local relevance. Coca-Cola has been an integral part of the African continent for over 96 years and today’s investment in Nigeria reiterates our optimism about the continent.”

President Tinubu commended Coca-Cola for its long-standing partnership with Nigeria and for promoting investment opportunities that have employed over 3000 people across nine production facilities.

”We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses. We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that,” he said.

Coca-Cola has a rich legacy of refreshing Africa and making a difference across the continent for over 96 years. In Nigeria, for 73 years, the Coca-Cola System has been an integral part of the local economy, employing over 2,800 people across 8 production plants.

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The investment announcement comes after Tinubu’s government saw several multinationals like Procter & Gamble, GSK Plc and Bayer AG leave the country or appoint third parties to distribute their products due to foreign exchange shortages.

Bottler Coca-Cola HBC in April said its operating profit would rise this year, supported by strong demand for its coffee, energy and sparkling drinks even as prices were hiked to keep up with high costs and currency devaluation in countries like Egypt and Nigeria.


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