Bola Tinubu, the President of Nigeria, and senior executives from Coca-Cola have concluded an investment-related meeting.
According to the Nigerian Presidential Office on Thursday, Coca-Cola plans to invest $1 billion in its Nigerian operations over the next five years.
Tinubu met with Coca-Cola’s President and CFO John Murphy, CEO of Coca-Cola HBC Zoran Bogdanovic, and several company officials to attract economic investments.
In his remarks, Bogdanovic noted that since 2013, Coca-Cola has invested $1.5 billion in Nigeria to enhance production capacity, improve supply chain logistics, and bolster training and development initiatives. He expressed optimism about future investments and was very pleased to announce plans to invest an additional $1 billion over the next five years, given a predictable and enabling environment.
This investment announcement comes as the Tinubu administration faces the departure of several multinational corporations, such as Procter & Gamble, GSK, and Bayer AG, from the country due to a shortage of foreign exchange.
Despite its population of over 200 million, which positions Nigeria as a potentially lucrative market for global brands, issues such as foreign exchange difficulties, complex regulatory environments, and inconsistent policies have deterred some investors.
In contrast, Coca-Cola HBC reported in April that, despite rising costs and currency devaluation in Egypt and Nigeria, it anticipates an increase in operating profits this year, driven by strong demand for coffee, energy drinks, and soft drinks.
On the stock market, Coca-Cola Company shares fell by 1.58% during intraday trading but experienced a slight uptick after the market closed.
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