Flour Mills targets continental growth with $1bn investment strategy
By Felicia Nwosu
Flour Mills of Nigeria Plc the nation’s largest food processing company, has revealed an ambitious plan aimed at fueling its continental growth strategy while capitalizing on opportunities within the African Continental Free Trade Area (AfCFTA).
Chairman John Coumantaros revealed the company’s ambitious vision to expand both domestically and across Africa over the next four years, marking a significant milestone in its evolution from a national leader to a pan-African food powerhouse.
The company plans to invest $500 million into expanding its sugar production operations in Niger State, with the goal of quadrupling output from 100,000 tons to over 400,000 tons annually. Alongside this, Flour Mills will allocate $100 million towards the development of a cassava-processing plant, a strategic move aimed at reducing Nigeria’s dependence on imported cassava starch and boosting local agricultural supply chains.
With profits taking a hit in 2023/2024 due to soaring raw material costs, which amounted to N1.8 trillion, Flour Mills is also restructuring its operations. The company intends to streamline its 22 business units into five separate entities, making it easier to attract technical and financial partners to accelerate the growth of its sugar and food businesses.
Coumantaros highlighted that the company’s expansion plans extend beyond Nigeria. “With the AfCFTA in place, we strongly believe our focus should expand across the continent, not just within Nigeria,” he explained, emphasizing Flour Mills’ vision to become a truly pan-African food enterprise headquartered in Nigeria.
As part of its long-term strategy, Flour Mills is considering a dual listing on the Nigerian Exchange (NGX) and other international stock markets after it completes its restructuring and repositioning. Coumantaros stressed that the company’s goal is to return to the market as a stronger, more diversified pan-African food and agro-allied conglomerate.
Flour Mills is also set to broaden its product portfolio by expanding its breakfast cereal offerings. Despite the extensive investment required for these ventures, Coumantaros confirmed that the company will largely fund its plans internally while also seeking the support of top-tier experts to drive growth and job creation in Nigeria.
This investment marks a pivotal step for Flour Mills of Nigeria as it positions itself for greater influence in both the local and continental food markets, leveraging AfCFTA to expand its reach across Africa.
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