NIGERIA - Coca-Cola Hellenic Bottling Company has announced a US$1 billion (US$1.63 trillion) investment in Nigeria over the next five years as part of its broader expansion efforts in the country. This pledge was made during a meeting between the President of Nigeria, Bola Tinubu, and Coca-Cola’s leadership team, including John Murphy, President and Chief Financial Officer, and Zoran Bogdanovic, Chief Executive Officer of Coca-Cola Hellenic Bottling Company.

The investment, which builds on Coca-Cola’s previous US$1.5 billion (N1.15 trillion) commitment made between 2013 and 2023, aims to enhance the company’s capacity, supply chain infrastructure, and workforce development. 

Speaking at the State House in Abuja, Bogdanovic cited the Nigerian government's recent economic policies as crucial factors in Coca-Cola's decision to double down on its investment in the country.

“We believe Nigeria’s potential is tremendous, and we are committed to working with the government to realize this potential,” Bogdanovic remarked. 

He further expressed satisfaction with the President's assurances that foreign businesses operating in Nigeria would be able to repatriate dividends and profits without restrictions.

Growing investment confidence

Murphy emphasized Coca-Cola’s longstanding presence in Nigeria, highlighting that the company generates approximately N320 billion (US$415 million) annually from nearly 300,000 customers and contributes around N90 billion (US$116 million) to the Nigerian government’s revenue. 

“Beyond the financial impacts, we are also very committed to supporting the communities through sustainability initiatives, especially in water management and waste recycling,” he noted the company’s broader community impact.

The investment comes at a time when Nigeria's economy is undergoing reforms aimed at enhancing its appeal to foreign investors. 

President Tinubu highlighted the importance of private sector partnerships in his government's efforts to improve the business environment, citing Coca-Cola’s decision as a validation of Nigeria's growing economic prospects.

“The size of this country is enormous in Africa, and the consumption capacity of Nigeria is expanding daily,” Tinubu stated. 

He assured the Coca-Cola delegation that his administration is committed to creating a favorable financial system that allows businesses to invest, reinvest, and repatriate their profits freely.

Strengthening local communities

Coca-Cola's investment plans go beyond business operations, as the company aims to expand its role in local communities. 

Over the last 10 years, Coca-Cola Hellenic Bottling Company has invested US$1.5 billion in Nigeria. 

With this new pledge, the company seeks to accelerate its initiatives around sustainability and corporate social responsibility. 

According to Bogdanovic, the company is particularly focused on areas such as skill development, clean water provision, and waste collection infrastructure to address environmental challenges like plastic pollution.

Henrique Braun, Executive Vice President of Coca-Cola International Development, reiterated the company's long-standing relationship with Nigeria, noting that Coca-Cola has been operating in the country for 73 years. 

Braun highlighted the company's commitment to creating jobs and empowering communities, stating that for every job Coca-Cola creates in Nigeria, an additional 31 jobs are indirectly supported across various sectors in the country.

Renewed investment pledge

This US$1 billion pledge comes two years after Coca-Cola’s earlier commitment to scale up its investment, which was delayed due to the challenging business environment at the time. 

Bayo Onanuga, Special Adviser to the President on Information and Strategy, addressed skepticism about the renewed pledge, pointing out that Coca-Cola’s decision is now based on the improved economic conditions and the predictable environment promised by the current administration's economic stabilization plan.

Coca-Cola's top officials, including Luisa Ortega, President of Coca-Cola’s Africa Operating Unit, and Naya Kalogeraki, Chief Operating Officer of Coca-Cola Hellenic Bottling Company, also attended the meeting. 

Ortega emphasized the importance of working closely with the Nigerian government to ensure a stable operating environment, while Kalogeraki noted the company’s optimism about Nigeria’s future growth and the potential of its market.

Legacy of corporate responsibility

Coca-Cola's presence in Africa spans 96 years, with a 73-year history in Nigeria. Currently, the company operates nine production facilities and employs over 3,000 people in the country. 

According to the Nigerian Bottling Company, Coca-Cola plans to further expand its workforce, focusing on local recruitment and skill development.

In line with its corporate social responsibility goals, Coca-Cola has been involved in several community support initiatives, including the provision of clean water and waste recycling programs. 

The company’s sustainability focus has been geared toward reducing its environmental footprint, particularly through efforts aimed at improving plastic waste management in Nigeria.

The Nigerian government and Coca-Cola have also indicated plans to collaborate on addressing broader environmental concerns, particularly in areas like climate change. Both parties acknowledged the need for continued private sector involvement in driving economic growth and improving the well-being of local communities.

With a predictable business environment, Coca-Cola's latest investment is expected to bolster its presence in Nigeria while contributing to the country's long-term economic growth. 

The announcement comes amid growing interest from foreign investors looking to tap into Nigeria’s expanding consumer base and evolving economic environment.