Coca-Cola has announced plans to invest $1 billion in its Nigerian operations over the next five years, aiming to bolster its presence in the country. This announcement came after a meeting between Nigeria’s President Bola Tinubu and senior executives of the global beverage giant, including John Murphy, president and CFO of Coca-Cola, and Zoran Bogdanovic, CEO of Coca-Cola HBC. The company’s investment is part of Tinubu’s wider effort to attract foreign investment and boost Nigeria’s economy.
Bogdanovic highlighted that Coca-Cola has already invested $1.5 billion in Nigeria since 2013, focusing on expanding production, improving the supply chain, and workforce development. He expressed confidence in Nigeria’s economic potential and said the additional $1 billion investment would be made if the business environment remains stable and predictable. This move comes amid a wave of multinational companies, like Procter & Gamble and GSK Plc, leaving Nigeria due to challenges such as foreign exchange shortages.
President Tinubu reassured Coca-Cola and other potential investors of his government’s commitment to creating a more business-friendly environment. He emphasized that Nigeria’s financial system would allow businesses to invest, reinvest, and repatriate their profits without difficulty. Tinubu’s administration, which began in May last year, has been working to address the country’s economic challenges and create policies that encourage global brands to establish a stronger presence in Nigeria.
Despite ongoing economic difficulties, including currency devaluation and inflation, Coca-Cola HBC remains optimistic about its operations in Nigeria. The company noted that its operating profit is expected to rise this year, driven by robust demand for its products, including coffee, energy drinks, and sparkling beverages, even as prices are adjusted to mitigate rising costs. Nigeria, with its large population, continues to be seen as a significant growth market for global brands.
