Why Coca-Cola’s Renewed $1bn Investment Faces Setback – Presidency

Samuel Mobolaji

The Nigerian government has explained the reason why the renewed $1 billion investment by the Coca-Cola Hellenic Bottling Company and its local partner, Nigeria Bottling Company (NBC), is facing a setback.

The presidency gave the reason in a statement titled ‘Explainer: Understanding Coca-Cola’s $1 billion investment’ issued by the special adviser to the President on Information and Strategy, Bayo Onanuga, on Thursday evening, September 19.

The Coca-Cola Company had in 2021 pledged the $1 billion investment but later withdrew from executing the project, blaming its failure on Nigeria’s macroeconomic environment, The ICIR can report.

In an explainer on Thursday, Onanuga asserted that the Coca-Cola Company’s failure to execute the project in 2021 had disparaged its renewed effort.

He said the initial pledge by the global beverage company was halted as a result of the “challenging business environment” that prevailed in the country at the time.

“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.

“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,” Onanuga explained.

He quoted the Coca-Cola Company as saying that amid its commitment in 2021, the company was 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 quoted the company to have said.

At a meeting with President Bola Tinubu on Thursday, a team from the Coca-Cola Company led by its president and chief financial officer, John Murphy, renewed plans to accelerate the company’s investments in Nigeria to $1 billion over the next five years.