Coca-Cola had promised to invest $1 billion in Nigeria by 2021, but they had to change their plans. This has now been explained by the president’s special adviser, Bayo Onanuga.
Mr. Onanuga said that Coca-Cola couldn’t keep their 2021 promise because it was hard to do business in Nigeria at that time. The company had to deal with extra taxes, which made them pause their plans.
Many people thought Coca-Cola had broken their promise. But, according to Onanuga, the environment for business in Nigeria was not good, and new taxes made things even harder. So, they decided to wait.
He also said that now, Coca-Cola is ready to invest again because the new government plans to make the business environment stable and predictable.
“Some people doubted the new $1 billion investment promise made by Coca-Cola to President Bola Tinubu in Abuja today. They remembered a similar promise from 2021 that wasn’t fulfilled,” said Onanuga.
However, the company said that the old plan was paused due to difficulties, but now the situation has changed. The new government’s economic plan promises a stable business environment.
Onanuga also mentioned that Coca-Cola and its local partner, Nigeria Bottling Company, have already invested $1.5 billion in Nigeria over the last 10 years.
Background Story
Newslodge had earlier reported that Coca-Cola Hellenic Bottling Company plans to invest $1 billion in Nigeria over the next five years to grow their business. The company’s CEO, Mr. Zoran Bogdanovic, said this during his visit to President Tinubu.
Mr. Bogdanovic said, “We are happy to invest another $1 billion in the next five years if the environment is good for business. Nigeria has a lot of potential, and we want to help make it successful.”
Since 2013, Coca-Cola has already spent about $1.5 billion to grow its operations in Nigeria. They have focused on making their business bigger and better.
Things You Should Know
- This new investment from Coca-Cola will help the Nigerian government attract more foreign investors even though some companies have left the country recently.
- Nigeria has over 200 million people, making it an attractive market for many big companies. But, problems like lack of foreign exchange, difficult government rules, and changing policies have scared off some investors.
- Recently, big companies like Procter & Gamble, GSK Plc, and Bayer AG have either left Nigeria or changed how they do business there because of the foreign exchange crisis.
- However, President Tinubu, who started his role last May, says his government wants to make Nigeria a better place for businesses.