Coca-Cola plans to invest $1 billion in its Nigerian operations over the next five years, the country’s presidency said after a meeting between President Bola Tinubu and senior executives of the soft drinks maker on Thursday.
Mr Tinubu met with John Murphy, Coca-Cola’s chairman and chief financial officer, Zoran Bogdanovic, CEO of Coca-Cola HBC – one of several Coca-Cola bottlers around the world – and several other company officials as he seeks to attract investment into the economy.
Mr Bogdanovic told Mr Tinubu that Coca-Cola had invested $1.5 billion in Nigeria since 2013 to increase its production capacity, improve its supply chain and provide training and development, the Nigerian presidency said in a statement.
“I am very pleased to announce that, with a predictable and supportive environment in place, we plan to invest an additional $1 billion over the next five years,” Bogdanovic said.
The announcement of the investment comes after Mr Tinubu’s government saw several multinationals such as Procter & Gamble, GSK Plc and Bayer AG either leave the country or appoint third parties to distribute their products due to shortage of foreign exchange.
Mr Tinubu, who has been in office since May last year, said his government wanted to create an open environment for business.
“We are building a financial system where you can invest, reinvest and repatriate all your dividends. I believe strongly in that,” he said.
Nigeria, with a population of more than 200 million, is seen as a potential market for many global brands, but currency problems, bureaucracy and inconsistent policies are deterring some investors.
In April, Coca-Cola bottler HBC said its operating profit would rise this year, helped by strong demand for coffee, energy drinks and sparkling beverages, even as prices were raised to cope with high costs and currency devaluation in countries such as Egypt and Nigeria.
