The presidential explanation for Coca-Cola’s 2021 decision to withdraw from its $1 billion, five-year investment commitment to Nigeria has been made clear.
Mr John Murphy, Global Chief Executive Officer Coca-Cola, Bola Ahmed Tinubu, President Federal Republic Of Nigeria, (Image Credit; Bayo Onanuga, X)
This information was released in a statement on Thursday by Bayo Onanuga, the Special Advisor to the President on Information and Strategy, in response to rumours that Coca-Cola had previously promised to invest in Nigeria but had not followed through.
According to Onanuga, the multinational beverage corporation withdrew its first pledge in 2021 because of the country’s “challenging business environment.”
Onanuga stated that the company’s preparations to fulfill the pledge were put on hold following its announcement in 2021 due to the impact of excise taxes.
“Naysayers and doubters scorned the $1 billion fresh investment pledge in Nigeria made by the company’s global leadership to President Bola Tinubu today in Abuja, saying the company made a similar promise in 2021.
“Yes, the company made a similar promise three years ago. But it couldn’t fulfil it because of the challenging business environment prevailing in Nigeria then. As the company’s spokesperson said, while the company made the commitment in 2021, it was also hit by excise taxes.
“Our investment pledges are always predicated on a predictable and stable environment. The $1 billion pledge has now been renewed based on the stable environment, which has been promised through the Tinubu government economic stabilisation plan,” Onanuga continued.
According to the presidency, the corporation and its local partner, the Nigeria Bottling Corporation, have invested $1.5 billion in Nigeria over the previous ten years.
“The Coca-Cola Company and its local partner, Nigeria Bottling Company, have already invested $1.5 billion in Nigeria over the space of 10 years,” Onanuga concluded.
Background
As Nairametrics previously reported, Coca-Cola Hellenic Bottling Company has revealed plans to invest $1 billion in Nigeria over the next five years to develop its business.
During his meeting with President Tinubu, the company’s CEO, Mr. Zoran Bogdanovic, revealed this and emphasized the company’s long-term commitment to Nigeria.
“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. We believe Nigeria’s potential is tremendous, and we are committed to working with the government to realize this potential,” Bogdanovic expressed.
The business also mentioned that, since 2013, it has invested almost $1.5 billion in its activities in Nigeria, concentrating on supply distribution, capacity expansion, and logistics.
What To Note
The federal government will benefit from the company’s investment as it continues to court foreign capital despite large outflows over the previous few years.
Many international businesses see Nigeria, home to more than 200 million people, as a promising market. However, obstacles like a lack of foreign exchange, red tape, and erratic regulations have turned off some investors.
The investment news comes as some major corporations, such as Procter & Gamble, GSK Plc, and Bayer AG, left the nation or found other ways to market their goods during the currency crisis.
Nonetheless, since taking office in May of last year, President Tinubu has reaffirmed the administration’s dedication to creating an atmosphere conducive to business.
