Coca-Cola plans $1 billion investment in Nigeria

ABUJA

Coca-Cola will invest $1 billion in Nigeria over the next five years, foreseeing "significant social and economic advancements" as the West African nation tries to fix the economy.

President Bola Tinubu's media adviser Bayo Onanuga said that the beverage giant announced the plan during a meeting between Tinubu and Coca-Cola's global leadership.

Several multinationals have shuttered operations in Africa's most populous nation, citing a challenging business environment and lack of access to foreign currency.

"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 U.S.-based giant said in a statement.

It is a respite for Nigeria which has been seeking foreign direct investment to strengthen its economy and boost dollar liquidity.

Nigeria's economy took a hit after Tinubu removed government backing for the local naira currency and ended long-standing fuel subsidies immediately after coming to power in May 2023.

Tinubu says despite the short-term pain, the reforms will benefit Nigeria and bring in foreign investment.

Inflation slowed for the second consecutive month in August to 32.15 percent after reaching almost a three-decade high of 34.19 percent in June.

Coca-Cola said it foresaw "significant social and economic advancements" in Nigeria.

Coca-Cola's business in the country, the Nigerian Bottling Company, was registered in 1951.

In 2019, it acquired local beverage maker Chi Limited after initially buying 40 percent stake in the company for $240 million in 2016.