Coca-Cola Hellenic Bottling Company has announced plans to invest $1 billion in Nigeria over the next five years, marking a major move to further strengthen its operations in one of its most important global markets.
This was disclosed by the company’s Chief Executive Officer, Zoran Bogdanovic, during a meeting with President Bola Tinubu, where the significant contributions of Coca-Cola to Nigeria’s economy were highlighted.
According to a statement from the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Coca-Cola generates approximately N300 billion in annual revenue from Nigeria, returning N90 billion to the government in taxes. The company has been actively investing in its Nigerian operations, with $1.5 billion spent since 2013 on expanding capacity, enhancing supply chain logistics, and workforce development.
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Bogdanovic expressed confidence in Nigeria’s potential and reaffirmed Coca-Cola’s commitment to increasing its footprint in the country. He noted, “Since 2013, we have invested $1.5 billion in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training, and development. 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.”
President Tinubu lauded Coca-Cola for its longstanding partnership with Nigeria and its contribution to employment creation, with the company employing over 3,000 workers across its nine production facilities. He stressed the importance of private sector partnerships in driving sustainable investments that align with his administration’s reforms aimed at improving the business climate. Tinubu also pledged the government’s support for Coca-Cola’s operations, including addressing environmental challenges such as climate change.
Coca-Cola’s decision to expand its investments in Nigeria comes at a crucial time for the federal government, which is seeking to attract foreign investors amid significant exits by multinational companies in recent years.
This latest commitment underscores the company’s belief in Nigeria’s long-term potential, despite the economic, regulatory, and infrastructural challenges that have characterized the business environment in recent years.
Earlier in the year, Coca-Cola was at odds with the Federal Competition and Consumer Protection Commission (FCCPC) over allegations of misleading trade descriptions and unfair marketing tactics. The FCCPC accused Coca-Cola Nigeria Ltd and its bottling subsidiary, NBC, of misleading consumers by promoting the “Original Taste, Less Sugar” variant as having the same formulation as the original Coca-Cola.
The FCCPC further warned that the company’s alleged abuse of market dominance would be subject to penalties under the Federal Competition and Consumer Protection Act (FCCPA) and the Administrative Penalties Regulation 2020 (APR), with regulatory action expected in the future.
Nigeria remains one of Coca-Cola’s largest and most lucrative markets on the African continent. With over 200 million consumers, the country offers immense opportunities for growth, particularly given its youthful population and increasing demand for fast-moving consumer goods (FMCG). Coca-Cola’s operations in Nigeria have significantly contributed to the company’s global revenues.
While Nigeria offers a vast consumer base, it also presents significant challenges. The country has faced persistent economic volatility, foreign exchange shortages, infrastructural deficiencies, and regulatory hurdles. In the wake of these challenges, many multinational companies have either scaled down their operations or exited the Nigerian market altogether. However, for Coca-Cola, the benefits of operating in Nigeria outweigh these obstacles.