Flour Mills to tap Pan-African market with restructuring

Flour Mills of Nigeria Plc, one of Nigeria’s foremost food and agro-allied companies is looking to expand into high-growth markets across Africa following a successful business restructuring.

The company recently announced plans to acquire minority shares, which is part of a broader strategy to transition its corporate structure to better support long-term growth.

According to the company, this restructuring is designed to unlock substantial value and enhance its competitiveness across Africa, marking a critical step towards becoming a pan-African food industry leader.

“The restructuring will enable FMN to streamline its operations, concentrate on its core strengths, and pursue growth opportunities across the continent more effectively. The share acquisition plan, involving the purchase of minority shares, is key to executing this new strategy,” a senior executive of the company said.

With over 60 years of existence in Nigeria, Flour Mills has evolved from a single flour milling company into a diversified group spanning food production, agriculture, logistics, and more. While the conglomerate structure was effective in the past, it is now seen as limiting the company’s ability to fully capitalize on Africa’s emerging market opportunities. This recent restructuring aims to not only expand its operations within Nigeria but also capitalize on broader regional growth prospects, beginning with West Africa by leveraging its expertise in food production and supply chain management, to become a key player in addressing food security challenges throughout the region.

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According to FMN, the timing of this restructuring aligns with Nigeria’s ongoing significant economic reforms, led by the current administration, which are aimed at diversifying the economy and creating opportunities for companies like FMN to play a more prominent role in food security and economic development.

“We are committed to Nigeria’s growth—a mandate we have upheld for over six decades,” said John G. Coumantaros, chairman of FMN’s Board. “In line with the Group’s Pan-African vision, this positions us to make meaningful contributions to Nigeria’s economic development, while progressively expanding our impact across the continent.”

While there have been concerns about changes in ownership control, the Company has been clear in emphasizing that the restructuring is driven by its long-term growth strategy, firmly anchored in its Nigerian roots.

With the restructuring process well underway, FMN’s next challenge will be executing on its Pan- African growth plans. The company has already laid the groundwork by investing in local supply chains, creating jobs, and partnering with local farmers to improve agricultural outputs. These efforts not only contribute to Nigeria’s food security but also strengthen the company’s ability to scale its operations across Africa.

Meanwhile, minority shareholders, are being offered a significant premium on their shares, giving them the opportunity to unlock substantial value. The offer reflects the company’s commitment to fair, transparent corporate governance and commitment to effective stakeholders’ relations.