The presidency has clarified the reasons behind Coca-Cola's withdrawal of its 5-year, $1 billion investment pledge to Nigeria, which was made in 2021.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this information in a statement on Thursday while responding to reports that Coca-Cola had previously made an investment pledge to Nigeria without fulfilling it.
According to Onanuga, the initial pledge by the global beverage company in 2021 was halted as a result of the "challenging business environment" prevailing in the country then.
Onanuga mentioned that after the company's announcement in 2021, it was impacted by excise taxes, which caused it to suspend its plans to deliver on the promise.
"Naysayers and doubters scorned the $1 billion fresh investment pledge in Nigeria made by the company's global leadership to President Bola Tinubu today in Abuja, saying the company made a similar promise in 2021.
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"Yes, the company made a similar promise three years ago. But it couldn't fulfil it because of the challenging business environment prevailing in Nigeria then. As the company's spokesperson said, while the company made the commitment in 2021, it was also hit by excise taxes.
"Our investment pledges are always predicated on a predictable and stable environment. The $1 billion pledge has now been renewed based on the stable environment, which has been promised through the Tinubu government economic stabilisation plan," Onanuga added.
Meanwhile, the presidency also stated that the company, along with its local partner, Nigeria Bottling Company, has invested $1.5 billion in Nigeria over the past 10 years.
"The Coca-Cola Company and its local partner, Nigeria Bottling Company have already invested $1.5 billion in Nigeria over the space of 10 years," Onanuga added.
Backstory
Nairametrics previously reported that Coca-Cola Hellenic Bottling Company has disclosed plans to invest $1 billion in Nigeria over the next five years to expand its business.
The Chief Executive Officer (CEO) of the company, Mr. Zoran Bogdanovic, disclosed this during his visit to President Tinubu, where he noted the company's long-term commitment to Nigeria.
"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," Bogdanovic said.
Furthermore, the company noted that since 2013, it has spent around $1.5 billion on its Nigerian operations, focusing on capacity expansion, supply distribution, and logistics.
What you should know
The company's investment will come as a confidence booster to the federal government in its drive to attract foreign investors despite significant exits in the past few years.
Nigeria, with a population exceeding 200 million, is considered a promising market for many global brands, but challenges such as foreign exchange shortages, bureaucratic hurdles, and inconsistent policies have deterred some investors.
The investment announcement follows the departure of several multinationals, including Procter & Gamble, GSK Plc, and Bayer AG, which have either exited the country or turned to third parties to distribute their products due to the forex crisis.
However, President Tinubu, who assumed office in May last year, has expressed his administration's commitment to fostering a business-friendly environment.
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