Nestle prioritizes Nigeria to drive growth
Fast Moving Consumer Goods giant, Nestle Nigeria Plc., has said that it is planning new investments in Nigeria in an effort to drive global growth for the company. The company noted that the new investment plan form part of its strategy to drive innovation with nutrition-based solution.
This was made known recently by John Miller, Nestlé’s Senior Vice-President for Asia, Oceania, and sub-Saharan Africa (AOA), during the launch in Lagos of the Milo energy food drink in a ready to drink format.
“Investing in Nigeria’s economy forms part of our global business strategy to drive innovation with nutrition-based solutions that enable healthier and happier lives,” Mr. Miller said.
The latest announcement is coming on the backdrop of the company’s declaration in 2014 of a 10 year investment plan for the Nigerian, which it promised to make the investment destination in Africa. It noted that within that period, 200million Swiss Francs, about $224million would be pumped into the Nigerian economy
Speaking in 2014 at the ground breaking ceremony of the N5.6 billion Nestle Waters factory Nestle Water Factory, Abaji, Abuja, which was completed and commissioned in 2016, Managing Director of the company, Darnhesh Gordhon stated that Nestle would continue to invest in the country, because despite the odds because there are still great opportunities in the Nigerian economy that would benefit his company.
Mr. Gordhon noted that the Abaji factory, which provides over 100 jobs, was the company’s third in Nigeria, first major investment in the North, and the most modern water processing factory in Central and West Africa.
“It underpins our strong belief in the potential of the local market and the resilience of Nigerian economy in spite of the current difficult and volatile business environment,’’ he said.
The new 10 year investment plan which commenced in 2014 comes at the tail end of another 10 year investment plan which saw the company pump in over 500 million Swiss Francs ($560 million) in new projects in Nigeria.
Nestle which recently declared a N16.5 billion profits after tax, in its financial results for the half year ended June 30, 2017, remains one of Nigeria’s most capitalized companies. According to analysts, the company’s recent flurry of investments in Nigeria is a show of confidence in the market which has just exited recession, amid massive infrastructural funding by government. Several other multinations including Ab In-Bev, Unilever and Coca-Cola have also in recent times announce new investment in the country to expand their operation.
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