The multinational company by the name of Coca-Cola Hellenic Bottling Company has pledged to invest $1 billion in Nigeria.
The investment, which the company had first announced three years ago but couldn’t fulfil due to Nigeria’s challenging business environment, is geared towards expansion of its business in the country.
This was made known by the Chief Executive Officer, (CEO) of the company, Mr Zoran Bogdanovic, during his visit to President Tinubu on Thursday.
Bogdanovic in the meeting noted the decision represents the company’s long-term commitment to Nigeria’s development.
Special adviser to the president on information and strategy, Bayo Onanuga, in a statement described the development as a major win for Nigeria’s economy.
The statement reads, “During a meeting with global and local Coca-Cola executives at the Presidential Villa today, Coca-Cola System announced that it will invest $1 billion over the next five years, creating more jobs and growth opportunities.
President Bola Tinubu reiterated Nigeria under his administration, will remain business friendly, and is open for business.”
Coca Cola in Nigeria, Africa
The Coca‑Cola Company is a total beverage company with operations in more than 200 countries and territories.
The company has been present in Africa for more than 96 years. It has produced in Nigeria for 73 years and currently employs about 2,800 people across 8 production facilities.
According to a recent economic impact assessment by Steward Redqueen, Coca Cola supports 31 more jobs for every job it directly creates.It has invested in sustainability initiatives such as supplying portable water in communities, and supporting the development of a more robust infrastructure for collecting plastic waste across the nation.
The Nigerian Economic Reality
Nigeria faces a myriad of economic challenges that significantly diminish its attractiveness to foreign direct investment (FDI). High inflation rates, exacerbated by poorly managed and sometimes half-hearted foreign currency exchange market and oil and gas sector reforms and infrastructural deficiencies deter potential investors.
Major investors such as Procter and Gamble, Kimberly-Clark, GlaxoSmithKline etc have exited Nigeria, sold or scaled down operations as inflation crushes the purchasing power of consumers while the depreciation of the naira increases input costs and inflates the firms’ foreign (exchange) loans.
President Ahmed Tinubu’s government has struggled to build investor confidence and steer markets toward a more optimistic outlook. The administration appears to have lost its initiative after its attempts to eliminate Nigeria’s long-standing fuel subsidy and unify the naira’s multiple exchange rates faltered, resulting in painful consequences.
In lieu of a realistic communication strategy that addresses the challenges and tough choices necessary for reform, government officials often resort to overly optimistic portrayals of Nigeria’s economy. The failure to explain to Nigerians the extensive damage caused by the Buhari administration’s eight years of vast subsidies—spanning foreign exchange, agriculture, and fuel—and its reliance on costly foreign loans did not prepare Nigerians for the difficult sacrifices needed to repair the economy. This is the Tinubu’s administration’s “original sin”.
Nigerians who are wary of hearing the government exaggerate tentative progress as revolutionary economic progress must be wondering when Coca-Cola will start investing the promised $ 1 billion in Nigeria. The Buhari regime announced many multimillion dollar investments from India, China and other countries which never materialised.
This strategy of “economic management by propaganda” erodes trust in the government but paradoxically remains very attractive to the current government.
