Coca-Cola plans $1bn investment for Nigeria over five years

Coca-Cola Hellenic Bottling Company has announced plans to invest $1bn in Nigeria over the next five years as part of its expansion drive in the country.

A statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Thursday noted that the announcement was made at a meeting between the President and the global leadership team of Coca-Cola Company, led by John Murphy, its president and chief financial officer, and the Chairman of Nigerian Bottling Company, Ambassador Segun Apata.

The Chief Executive Officer of Coca-Cola Hellenic Bottling Company, Zoran Bogdanovic, expressed the company’s confidence in Nigerian government policies as a key factor behind its $1bn investment pledge.

“Since 2013, we have invested $1.5bn in Nigeria for capacity expansion, transformation of our supply chain infrastructure, and training and development. With a predictable and enabling environment, we are pleased to announce that we plan to invest an additional $1bn over the next five years. We believe in Nigeria’s tremendous potential and are committed to working with the government to realize this potential.

“Mr President, in your inaugural address, we were very pleased to hear of your invitation for foreign investors to invest and your assurance that foreign businesses can repatriate dividends and profits.”

Bogdanovic underscored the company’s commitment, stating, “That assurance gives us the confidence to continue our investments. Since 2013, we have invested $1.5bn in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training, and development.

“I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1bn over the next five years. We believe Nigeria’s potential is tremendous, and we are committed to working with the government to realise this potential.”

In his response, President Bola Tinubu stated that private sector partnerships were crucial to his government’s extensive reforms aimed at improving the business environment.

He declared, “Private sector partnerships, which sustain investments, are central to my government’s far-reaching reforms to enhance the business climate.”

He assured that the government would continue collaborating with Coca-Cola to expand investments in Nigeria and address environmental issues, including climate change.

“The size of this country is enormous in Africa, and the consumption capacity of Nigeria is expanding daily,” President Tinubu added, commending Coca-Cola for its commitment to scaling up skill development and community initiatives as part of its corporate social responsibility efforts.

Tinubu praised Coca-Cola for its enduring partnership with Nigeria and for creating over 3,000 jobs across its 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, reinvest, and repatriate all your dividends. I have a firm belief in that,’’ he said.

Murphy, representing Coca-Cola, provided an overview of the company’s operations in Nigeria.

He noted that Coca-Cola generated approximately N320bn annually through nearly 300,000 customers and contributed almost N90bn in revenue to the Nigerian government.

“We are very proud of the growth of the business over a long period and its impact on the daily lives of many Nigerians,” Murphy stated.

He stressed Coca-Cola’s dedication to community support and sustainability, noting, “Beyond the financial impacts, we are also very committed to supporting the communities, and over the last number of years, we’ve had a special focus on several areas in the world of sustainability, water packaging, and others.”

Also, in a post on his official X handle (formerly Twitter), Onanuga addressed scepticism surrounding the new investment pledge.

He noted that while Coca-Cola made a similar promise in 2021, it could not be fulfilled due to the challenging business environment at that time.

“Our investment pledges are always predicated on a predictable and stable environment,” he noted.

Onanuga stated that the $1bn pledge had now been renewed based on the stable environment promised through the Tinubu government’s economic stabilization plan.

The PUNCH reports that former Vice President Yemi Osinbajo in 2021 commended Coca-Cola for its planned $1bn investment in Nigeria, calling it a testament to the potential within the Nigerian economy.