NIGERIA - Flour Mills of Nigeria Plc (FMN), one of Nigeria's leading food and agro-allied companies, has revealed plans for a dual listing on the Nigerian Exchange (NGX) and an additional stock exchange. 

The move comes as part of a restructuring aimed at fostering long-term growth and expanding the company's footprint across Africa.

In an interview, FMN Chairman John Coumantaros emphasized the company's commitment to increasing investments in both Nigeria and other parts of Africa. 

“Our pan-African food business will likely feature a dual listing on the NGX and another stock exchange,” Coumantaros stated. This dual listing is expected to follow the company's ongoing reorganization efforts.

Restructuring and temporary delisting

As part of its restructuring plan, FMN recently secured regulatory approval to buy out its minority shareholders through a scheme of arrangement. This move follows the decision by its major shareholder, Excelsior, to go private, which will temporarily delist FMN from the NGX. 

However, Coumantaros assured stakeholders that the company will return to the market with a dual listing once the restructuring is complete.

“The NGX will remain a crucial platform for our future, but first, we need to reorganize, retool, recapitalize, and refocus to ensure readiness for this strategic move,” he added.

The restructuring includes streamlining FMN's 22 business units into five core companies, focusing on high-growth sectors, particularly sugar and food production. This realignment is aimed at attracting technical and financial partners to bolster FMN's growth strategy.

Investment in sugar and cassava operations

As part of its expansion plan, FMN has announced that it will invest up to US$1 billion (₦758 billion) over the next four years to scale its operations across Nigeria. 

A significant portion of this investment—US$500 million (₦379 billion)—will be directed towards expanding its sugar business in Niger State. The company aims to boost production from the current 100,000 tons to over 400,000 tons annually.

In addition, FMN will allocate US$100 million (₦76 billion) to establish a cassava-processing plant, aimed at reducing Nigeria's reliance on cassava starch imports. 

Seeking technical and financial partners

Coumantaros stressed that while FMN will finance a large portion of the capital internally, the company is actively seeking partners to provide technical expertise and financial backing. 

“The capital requirements are significant. While we will contribute a large share, growth demands collaboration. We will seek technical and financial partners to bring in expertise and help scale our operations, creating more business and jobs in Nigeria,” he said.

FMN's long-term vision is to build a pan-African food business headquartered in Nigeria, leveraging the African Continental Free Trade Area (AfCFTA) to drive expansion across the continent, starting with West Africa.

Financial performance

FMN's expansion plans come on the heels of a challenging financial year. 

In the 2023/2024 fiscal year, the company spent around ₦1.8 trillion (US$2.37 billion) on raw materials, which contributed to a 91% decline in its profit. However, the company remains optimistic about the future, banking on its restructuring and recapitalization efforts to improve its financial standing.

FMN's investment in expanding its breakfast cereal product line is also expected to contribute to future growth, with the majority of the funding for this expansion coming from internal sources.