Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, has affirmed that Coca-Cola Hellenic Bottling Company and its Nigerian partner suspended their $1 billion investment target in 2021 due to adverse economic conditions and high taxes in Nigeria.
This was disclosed in a post on his official X handle (formerly Twitter) on Thursday, addressing the challenges surrounding the new investment pledge.
“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. As the company’s spokesperson said, while the company made the commitment in 2021, it was also hit by excise taxes.”
Onanuga reiterated, “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.”
However, the announcement of a renewed investment was disclosed in a statement also signed by Onanuga at a meeting between the president and the global leadership team of Coca-Cola Company, led by John Murphy, its president.
Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, expressed optimism in the Nigerian government policies as a primary determinant of its $1bn investment pledge.
“Since 2013, we have invested $1.5 billion in Nigeria for capacity expansion, transformation of our supply chain infrastructure, and training and development. With a predictable and enabling environment, we are pleased to announce that we plan to invest an additional $1 billion over the next five years.”
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He affirmed his excitement about the President’s invitation for foreign investors to invest and his assurance regarding the repatriation of dividends and profits.
“That assurance gives us the confidence to continue our investments. Since 2013, we have invested $1.5 billion in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training, and development,” Bogdanovic said.
He announced that, with a predictable and enabling environment in place, Coca-Cola plans to invest an additional $1 billion over the next five years.
“Private sector partnerships, which sustain investments, are central to my government’s far-reaching reforms to enhance the business climate,” President Bola Tinubu said.
He assured that the government would continue collaborating with Coca-Cola to expand investments in Nigeria and address environmental issues, including climate change.
He also commended Coca-Cola for its commitment to skill development and community initiatives saying “The size of this country is enormous in Africa, and the consumption capacity of Nigeria is expanding daily.”
Tinubu praised Coca-Cola for its enduring partnership with Nigeria and for creating over 3,000 jobs across its nine production facilities.
“We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses. We are building a financial system where you can invest, reinvest, and repatriate all your dividends. I have a firm belief in that,’’ he said.
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