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Group warns Nigerian government against Coca-Cola's $1 billion investment promise

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The organization Corporate Accountability and Public Participation Africa (CAPPA) has criticized the Nigerian government for accepting Coca-Cola's billion-dollar investment promise, citing the company's alleged history of broken promises and harm to public health.

CAPPA, in a statement signed by its Head of Media and Communication, Robert Egbe, accused Coca-Cola of attempting to “whitewash” its image despite multiple dishonest business practices and regulatory violations.

This is a reaction to Coca-Cola's recent visit to President Bola Tinubu, during which the corporation announced a $1 billion investment commitment in Nigeria over five years.

“The Coca-Cola System has been part of Nigerian communities for more than 70 years and believes in the strength and continued potential of the market. “We are excited to announce this investment, which demonstrates our dedication to fostering economic growth and creating employment opportunities in the country,” Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, told Nigerian President Bola Tinubu.

“Our investment goes beyond business growth; it's about contributing to the well-being of the communities we call home. “We anticipate significant social and economic progress, which is why we continue to invest in our business operations and community programs in Nigeria,” he added.

However, according to CAPPA, Coca-Cola's latest commitment is a recycled commitment made three years ago during the administration of former President Muhammadu Buhari, which the company failed to fulfill.

However, the presidency clarified in a statement last week that the corporation stopped the earlier investment due to the “difficult business environment” then prevailing in the country.

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But CAPPA criticized the government for defending Coca-Cola despite its alleged “persistent attack on public health and regulatory violations more than anything else.”

Regarding the trend

The group accused the beverage manufacturer of regulatory violations, negative impact on public health and recent investigations by the Federal Competition and Consumer Protection Commission (FCCPC).

In 2017, a Lagos High Court ruled against the company, revealing that its products were unfit for consumption because they contained high levels of sunset yellow and benzoic acid.

According to the European and American food and drug agencies, elevated levels of sunset yellow and benzoic acid can form the carcinogen benzene when combined with ascorbic acid (vitamin C).

“For this reason, the court ordered the company to place warning labels on its drinks, advising consumers against combining their intake with vitamin C. But to this day, the company has refused to comply with this directive.

“This disregard and disregard for public health and judicial authority should normally disqualify the company from receiving any form of state support, let alone at the highest level of government,” the CAPPA statement read.

Recently, the FCCPC found Coca-Cola guilty of deceptive trade practices. The Commission's investigation that began in 2019 revealed that the company had consistently engaged in misleading product packaging and inconsistent pricing strategies that misled consumers.

“Unfortunately, by endorsing Coca-Cola's shady investment just months after it was indicted by the FCCPC, the Nigerian government is not only setting itself up as a whitewasher of a dirty corporation, but is also, incredibly, undermining and embarrassing its own regulatory authority,” the report stated. The CAPPA statement said.

Public health concerns

The statement also quoted the Executive Director of CAPPA, Akinbode Oluwafemi, who emphasized that Coca-Cola products contribute to Nigeria's public health crisis, particularly non-communicable diseases such as diabetes, obesity and heart diseases.

The statement further reads in part: “The question the Nigerian government must ask itself in light of all this is what it can really gain by propping up a multinational corporation with a dark history of non-compliance and whose products are even actively contributing to a health crisis.” public in the country?

READ ALSO: Coca-Cola to provide economic boost through $1 billion investment in Nigeria

“Sugar-sweetened beverages, like many of the Coca-Cola products in that category, are well-known and documented contributors to non-communicable diseases (NCDs) such as diabetes, obesity and heart disease and other associated health conditions that are already exerting pressure on Nigerian health. Health system and economy.

“As such, while the company's economic investment promises may seem attractive, the potential profits pale in comparison to the costs and long-term public health harms that the consumption of its products inflicts on the Nigerian population as in other parts of the world.” '.

The organization further warned that the government's cozy relationship with Coca-Cola could jeopardize the implementation of the sugary drinks tax in Nigeria, aimed at reducing consumption and tackling the rise in NCDs.

“We therefore call on the Nigerian government to prioritize the interests of Nigerians by avoiding questionable partnerships with law-breaking corporations and adversaries of public health. “We urge the State to unscrupulously defend public health and consider genuine ethical investments that prioritize the well-being of Nigerians over empty promises and profit-seeking deceptions,” he added.

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