Nigeria’s presidency has announced that Coca-Cola plans to invest $1 billion in its Nigerian operations over the next five years. This development comes after a meeting between President Bola Tinubu and senior executives of the soft drinks maker, including John Murphy, President and Chief Financial Officer of Coca-Cola, and Zoran Bogdanovic, CEO of Coca-Cola HBC.
Bogdanovic revealed that Coca-Cola has already invested $1.5 billion in Nigeria since 2013 to expand production capacity, improve supply chains, and enhance training and development. He expressed satisfaction with the predictable and enabling environment in place, prompting the additional investment.
President Tinubu assured the executives that his government is committed to creating an environment open to businesses, allowing for investment, re-investment, and repatriation of dividends. This announcement comes as a welcome boost, especially after several multinationals, including Procter & Gamble, GSK Plc, and Bayer AG, exited or restructured their operations in Nigeria due to foreign exchange shortages.
Nigeria’s large population of over 200 million presents significant market potential for global brands. However, challenges such as forex woes, red tape, and policy inconsistency have discouraged some investors. Coca-Cola HBC expects its operating profit to rise this year, driven by strong demand for coffee, energy, and sparkling drinks.
