*Coca-Cola made a Similar Promise in 2021 In what appears to be a diplomatic business rapprochement, President Tinubu on Thursday assured investors of his determination to create a business-friendly economy that will attract more direct investment as Coca-Cola Hellenic Bottling Company said it plans to invest $1 billion in Nigeria to expand its business over
*Coca-Cola made a Similar Promise in 2021
In what appears to be a diplomatic business rapprochement, President Tinubu on Thursday assured investors of his determination to create a business-friendly economy that will attract more direct investment as Coca-Cola Hellenic Bottling Company said it plans to invest $1 billion in Nigeria to expand its business over the next five years.
Despite his economic policies which are sapping smiles from the faces of many Nigerians, President Bola Ahmed Tinubu on Thursday reiterated his administration’s commitment to creating a robust financial system while commending Coca-Cola for its long-standing partnership with Nigeria and promoting investment opportunities that have employed over 3000 people across nine production facilities.
The President said: “We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses. We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that,”
The President informed the delegation that private sector partnerships, which sustain investments, are central to his government’s far-reaching reforms to improve the business environment. He pledged that the government would continue partnering with Coca-Cola to expand investments in Nigeria and address environmental issues, including climate change.
The Chief Executive Officer of Coca-Cola Hellenic Bottling Company, Mr Zoran Bogdanovic said the company plans to invest $1 billion in Nigeria in expansion of its business in over five years. He made this known during a visit to President Tinubu.
In a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Coca-Cola revealed that it generates around N300 billion in revenues per year from Nigeria and returns N90 billion to the government as taxes.
“That assurance gives us the confidence to continue our investments. Since 2013, we have invested $ 1.5 billion in Nigeria in capacity expansion, the 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. We believe Nigeria’s potential is tremendous, and we are committed to working with the government to realize this potential.”
The team of Coca-Cola Company, led by Mr John Murphy, its president and chief financial officer, and the Chairman of Nigerian Bottling Company, Ambassador Segun Apata at the Presidential Villa, Abuja.
Presenting an overview of Coca-Cola’s business in Nigeria, Mr. Murphy noted that the company generates N320 billion annually through nearly 300,000 customers and contributes almost N90 billion in revenue to the Nigerian government.
”We are very proud of the growth of the business over a long period and its impact on the daily lives of many Nigerians. Beyond the financial impacts, we are also very committed to supporting the communities, and over the last number of years, we’ve had a special focus on several areas in the world of sustainability, water packaging, and others” he said.
Also, Mr Zoran Bogdanovic explained that the company’s confidence in Nigerian government policies had encouraged it to make the $1 billion investment pledge. ”Mr President, in your inaugural address, we were very pleased to hear of your invitation for foreign investors to invest and your assurance that foreign businesses can repatriate dividends and profits.
”That assurance gives us the confidence to continue our investments. Since 2013, we have invested $ 1.5 billion in Nigeria in capacity expansion, the 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. We believe Nigeria’s potential is tremendous, and we are committed to working with the government to realise this potential,” he said.
Is Coca-Cola Company Recycling Its $1 Billion Investment in Nigeria?
On 23 November 2021 during the 70th anniversary gala of the Nigerian Bottling Company (NBC), the company disclosed its intention to invest $1 billion in Nigeria in the next five years.
Prof. Yemi Osinbajo, Senior Advocate of Nigeria (SAN) who was then the Vice President of Nigeria said the intention to invest $1 Billion in Nigeria by the soft drink giant testifies to the possibilities in the economy despite challenges.
What Nigerians expected the Coca-Cola Company to tell the President during its parley on Thursday was how much of the $1 Billion investment promised three years ago has come into the economy, the specific areas where it was deployed, and the multiplier effects on the economy. Without these specifics, it would appear the visit to the President could be a diplomatic shuttle to resolve other lingering issues.
