REWIND: In 2021, Coca-Cola made similar pledge of $1bn investment to Nigeria

The Coca-Cola Hellenic Bottling Company, on September 19, announced plans to invest $1 billion in Nigeria over the next five years.

According to a statement, the investment commitment was made during a meeting with Coca-Cola’s global leadership team, including John Murphy, president and chief financial officer, and Segun Apata, chairman of the Nigerian Bottling Company.

Reacting to the development, President Bola Tinubu commended the beverage maker for its long-standing partnership with Nigeria and employing over 3,000 people across nine production facilities.

Tinubu said the investment highlights his administration’s commitment to creating a robust financial system and a business-friendly economy.

On his part, Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, attributed the company’s $1 billion investment pledge to its confidence in the Nigerian government’s policies.

Bogdanovic also said since 2013, “we have invested $1.5 billion in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training and development”.

SAME COMMITMENT IN 2021

This development is not the first time Coca-Cola has made such investment commitments.

On November 23, 2021, the producer pledged to invest $1 billion in Nigeria’s economy.

Former Vice-President Yemi Osinbajo lauded the company for the gesture, describing it as a testament to the possibilities in the Nigerian economy.

Osinbajo assured that the federal government would continue to partner with the company to achieve better strides.

“Your ongoing investment in the country, which I am told will be in the order of $1 billion in the next five years, testifies to your faith in the possibilities of Nigeria,” he said.

‘WHY COCOA-COLA DIDN’T FULFILL THE PREVIOUS INVESTMENT PLEDGE’

Responding to doubts that trailed Coca-Cola’s fresh investment pledge in a social media post Bayo Onanuga, special adviser on information and strategy to the president, said the 2021 promise could not be fulfilled due to the challenging business climate at the time.

“Understanding the Coca-Cola’s $1 billion investment 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,” Onanuga wrote.

“Yes, the company made a similar promise three years ago. But it couldn’t fulfill 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.'”

He said 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.

Since Tinubu became president, Nigeria has received several investment commitments from various investors, totalling $30 billion, according to the federal government on February 27.