Tinubu Reacts As Coca-Cola Announces Plans To Invest $1 Billion in Nigeria Over Five Years
- In a major boost for Nigeria’s economy, Coca-Cola Hellenic Bottling Company has indicated interest to invest $1 billion in Nigeria
- The global company cited confidence in government policies and the promise to repatriate revenue as a reason for its decision
- President Bola Tinubu has reacted to the development and also also clarified a similar announcement in 2021
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Coca-Cola Hellenic Bottling Company (CCHBC) has announced plans to invest $1 billion over the next five years.
The company said the investment is part of the company desire to expand its footprints in Nigeria.
Source: Getty Images
The announcement came during a meeting between President Bola Tinubu and the global leadership team of Coca-Cola, led by John Murphy, the company’s President and Chief Financial Officer, and Segun Apata, Chairman of Nigerian Bottling Company.
Cola Cola investment plan in Nigeria
Speaking on behalf of Coca-Cola, Zoran Bogdanovic, CEO of CCHBC, highlighted the company’s confidence in Nigeria’s business environment.
He noted that recent government policies that have created an encouraging atmosphere for foreign investment.
Bogdanovic said:
“Since 2013, we have invested $1.5 billion in Nigeria in capacity expansion and supply chain transformation. With a stable and predictable environment, we are now pleased to announce an additional $1 billion investment over the next five years,”
The Punch reports that he commended President Tinubu’s administration for guaranteeing foreign investors can repatriate their profits, which he said was vital to Coca-Cola’s decision to further expand in Nigeria.
President Tinubu respond
Reacting, President Tinubu expressed his appreciation for the investment, emphasising the importance of private sector partnerships in driving Nigeria’s economic growth.
He said:
“Private sector partnerships are central to my government’s extensive reforms to enhance the business climate."
Tinubu praised Coca-Cola for its enduring partnership with Nigeria and for creating over 3,000 jobs across its nine production facilities.
He reassured Coca-Cola that the government would continue to work closely with them to not only expand business operations but also tackle environmental challenges, such as climate change.
Presidency reacts to Coca Cola promise
The news of Coca-Cola's investment generated reactions from Nigerians, who pointed out that a similar investment promise was made in 2021.
In response, Bayo Onanuga, Special Adviser to the President on Information and Strategy, said the earlier promise was disrupted by a challenging business environment at the time.
Onanuga noted that the renewed $1 billion pledge is now based on the stable economic conditions promised by the Tinubu administration’s stabilization plan.
Foreign company to leave Nigeria
Legit.ng earlier reported that Equinor Nigeria Energy Company (ENEC) has agreed with Chappal Energies to sell ENEC's 53.85% ownership in the oil and gas lease OML 128.
According to a statement obtained from Equinor's website, this includes the unitised 20.21% stake in the Agbami oil field, operated by Chevron.
However, according to the statement, the deal's completion is subject to regulatory approval.
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Source: Legit.ng
