CAIRO – In a significant move to shore up Nigeria’s faltering economy, Coca-Cola has committed to injecting $1 billion into the country over the next five years. This announcement was made as Nigeria, the most populous country in Africa, grapples with severe economic challenges.
According to Burkina Information Agency, the investment plan was revealed following a meeting between Nigerian President Bola Ahmed Tinubu and top executives from Coca-Cola. The beverage giant’s initiative comes at a critical time for Nigeria, which has been actively seeking to attract foreign direct investments to enhance its economic resilience and improve dollar liquidity. “Over the next five years, with a predictable and enabling environment in place, Coca-Cola plans to accelerate its investments in Nigeria to reach $1 billion,” the company stated.
The project aims to provide much-needed economic relief and foster significant social progress. Nigeria is currently experiencing an economic downturn triggered by recent reforms initiated by President Tinubu, who assumed office in May 2023. His administration’s decisions to end fuel subsidies and abolish foreign exchange controls have led to a spike in petrol prices and an increased cost of living, while the Nigerian currency, the naira, has depreciated against the dollar.
The economic measures have prompted several multinational companies to halt their operations in Nigeria, citing a challenging business environment and restricted access to foreign currency. In contrast, Coca-Cola’s announcement underscores its commitment to bolstering its presence and community engagement in the region. Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, emphasized, “We anticipate significant social and economic progress, which is why we continue to invest in our business operations and community programs in Nigeria.”
The Nigerian Bottling Company, a part of the Coca-Cola system, was established in 1951 and has been a pivotal player in the local market. It expanded its portfolio significantly in 2019 by acquiring Chi Limited, a local beverage manufacturer, after initially purchasing a 40% stake in the company for $240 million in 2016.