Coca-Cola Announces $1 Billion Investment in Nigeria Operations

Coca-Cola plans to invest $1 billion in its Nigeria operations over the next five years, according to a statement from the Nigerian presidency following a meeting between President Bola Tinubu and senior executives of the soft drinks giant on Thursday.

During the meeting, Tinubu spoke with John Murphy, president and chief financial officer of Coca-Cola, and Zoran Bogdanovic, CEO of Coca-Cola HBC, a major Coca-Cola bottler, as part of his efforts to attract investment into Nigeria’s economy.

Bogdanovic revealed that since 2013, Coca-Cola has invested $1.5 billion in Nigeria to expand production capacity, enhance its supply chain, and support training and development initiatives. “I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years,” Bogdanovic stated.

The announcement comes at a time when Tinubu’s government is trying to retain international investors, after companies like Procter & Gamble, GSK Plc, and Bayer AG either exited the country or shifted to third-party distributors due to foreign exchange shortages.

Tinubu, who took office in May, emphasized that his administration is committed to creating a business-friendly environment. “We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I firmly believe in that,” he said.

With a population of over 200 million, Nigeria presents a significant market for global brands.

However, challenges such as foreign exchange shortages, bureaucratic red tape, and policy inconsistencies have deterred some investors.

In April, Coca-Cola HBC projected increased operating profits for the year, driven by strong demand for coffee, energy, and sparkling drinks, despite price hikes aimed at offsetting high costs and currency devaluation in markets like Egypt and Nigeria.

(Reporting by Felix Onuah, Writing by MacDonald Dzirutwe; Editing by Aurora Ellis)