The Coca-Cola Hellenic Bottling Company, on September 19,
announced plans to invest $1 billion in Nigeria over the next five years.
According to a statement, the investment commitment was made
during a meeting with Coca-Cola’s global leadership team, including John
Murphy, president and chief financial officer, and Segun Apata, chairman of the
Nigerian Bottling Company.
Reacting to the development, President Bola Tinubu commended
the beverage maker for its long-standing partnership with Nigeria and employing
over 3,000 people across nine production facilities.
Tinubu said the investment highlights his administration’s
commitment to creating a robust financial system and a business-friendly
economy.
On his part, Zoran Bogdanovic, CEO of Coca-Cola Hellenic
Bottling Company, attributed the company’s $1 billion investment pledge to its
confidence in the Nigerian government’s policies.
Bogdanovic also said since 2013, “we have invested $1.5
billion in Nigeria in capacity expansion, transformation of our supply chain
infrastructure capabilities, training and development”.
SAME COMMITMENT IN
2021
This development is not the first time Coca-Cola has made
such investment commitments.
On November 23, 2021, the producer pledged to invest $1
billion in Nigeria’s economy.
Former Vice-President Yemi Osinbajo lauded the company for
the gesture, describing it as a testament to the possibilities in the Nigerian
economy.
Osinbajo assured that the federal government would continue
to partner with the company to achieve better strides.
“Your ongoing
investment in the country, which I am told will be in the order of $1 billion
in the next five years, testifies to your faith in the possibilities of
Nigeria,” he said.
‘WHY COCOA-COLA
DIDN’T FULFILL THE PREVIOUS INVESTMENT PLEDGE’
Responding to doubts that trailed Coca-Cola’s fresh
investment pledge in a social media post Bayo Onanuga, special adviser on
information and strategy to the president, said the 2021 promise could not be
fulfilled due to the challenging business climate at the time.
“Understanding the Coca-Cola’s $1 billion investment
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,” Onanuga wrote.
“Yes, the company
made a similar promise three years ago. But it couldn’t fulfill 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.’”
He said 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.
Since Tinubu became president, Nigeria has received several
investment commitments from various investors, totalling $30 billion, according
to the federal government on February 27.
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