Coca-Cola plans to invest $1 billion in Nigeria over the next five years, anticipating “significant social and economic advancements” as the country works to improve its economy.
The announcement came during a meeting between President Bola Tinubu and Coca-Cola’s global leadership, as shared by Bayo Onanuga, the president’s media adviser.
Many multinationals have shut down operations in Africa’s most populous nation, citing a challenging business environment and difficulties accessing foreign currency.
However, Coca-Cola stated that with a predictable and enabling environment, it aims to accelerate its investments in Nigeria to reach $1 billion.
The investment will support Coca-Cola’s value chain, which includes suppliers, distributors, retailers, and recyclers.
Tinubu emphasized the government’s commitment to building a financial system that allows for investment, reinvestment, and the repatriation of dividends.
This investment comes as Nigeria seeks foreign direct investment to bolster its economy and improve dollar liquidity.
The economy has faced challenges following Tinubu’s removal of government support for the local naira currency and the end of long-standing fuel subsidies shortly after he assumed office in May 2023.
Despite short-term challenges, Tinubu believes these reforms will attract foreign investment and ultimately benefit Nigeria.
In August, inflation eased for the second consecutive month to 32.15%, down from a near three-decade high of 34.19% in June.
Coca-Cola expressed confidence in the potential for “significant social and economic advancements” in Nigeria.
Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, noted, “Our investment goes beyond business growth; it’s about contributing to the well-being of the communities we call home.”
Coca-Cola’s presence in Nigeria dates back to 1951 with the establishment of the Nigerian Bottling Company. In 2019, the company expanded its footprint by acquiring local beverage maker Chi Limited, having initially purchased a 40% stake for $240 million in 2016.
