Coca-cola soon to leave Nigeria

The handwriting is gradually appearing on the Nigerian wall of state of affairs. Multinational companies are gradually moving their headquarters out of the country, and in some cases the entire business outfit. Indications have emerged that Nigerian Bottling Company (NBC) Plc, producers of Coca-Cola, may be on its way out of Nigeria, heading to Cote d’Ivoire. NBC manufactures and distributes over 33 brands of Coca-Cola products in Nigeria. If this comes true, NBC Plc which began production in Nigeria in 1953 would join the long list of multinationals and other companies relocating to neighbouring West African countries in the last few years.

NBC according to reports blames the poor state of Nigerian roads, insecurity and erratic power supply and bank crisis as reasons for its planned relocation. They attribute the economic downturn from bank crisis as a multiplier effect on bad business climate in Nigeria from worsening insecurity and poor infrastructure.

The soft drink giant according to sources, has written major stakeholders about its intention to leave Nigeria. This according to the source, they attributed to the poor state of Nigerian roads, insecurity, erratic power supply and bank crisis resulting to dry up of commercial loans. First Bank reportedly, is the only bank out of a total of 24 in the country that is still granting commercial loans.

A NBC spokeswoman speaking on condition of anonymity, denied plans of the company leaving Nigeria. She said NBC would not easily leave the country as she still maintains 13 production plants in the country hiring about 6,000 workers with 200,000 distribution outlets. She questioned: “Where will we go to?” Mr. Clem Ugorji, Coca-Cola Nigeria, Corporate Communications Head, in a press statement denied relocation plans out of Nigeria by the company. “It is absolute falsehood, without any basis,” Ugorji said.

In what seemed to buttress its rebuttal of alleged plans of relocation, Coca-Cola embarked on its traditional Nigerian Christmas tree lighting ceremony started in 2007. On December 10, Lagos State Governor, Babatunde Fashola, lighted Coca-Cola Christmas tree, described as the tallest Christmas tree in Africa. The event took place at the National Arts Theatre, Iganmu, Lagos, where Coca-Cola Nigeria set up the presumed tallest African Christmas tree. The Christmas tree has over one thousand branches adorned with over 7,500 ornaments and illuminated with 40,200 bulbs and light-emitting diodes.

The colourful tree-lighting ceremony was attended by dignitaries from across the country, including media executives, news reporters, music and Nollywood celebrities. Coca-Cola Nigeria Managing Director, Islay Rhind, speaking at the event explained that the idea to grow the tallest Christmas tree in Africa was conceived in 2007. He said: “We have started a tradition by introducing something different in Africa. The tree is not just a tree. It is a reflection of Nigeria’s cultural heritage and tonight we would be recognizing some Nigeria’s great cultures.”

Coca-Cola has over the years raised its investment profile in Nigeria. In 1999, shortly after the swearing-in of Obasanjo as President of Nigeria, NBC led a delegation to Aso Rock to register support for the new administration. The delegation during it’s meeting with Obasanjo promised to support Nigeria’s economy through increased direct investments. NBC invested over N10 billion naira in the country between 2000 to 2007.

In 2005, the company made an investment of $150 million in manufacturing and new agricultural initiatives in the country. The investment was said to be the largest single injection of foreign funds in the country for some time by a private sector company. In 2007, NBC summed up their promise with the building of the Abuja plant. The Abuja plant was commissioned by President Umaru Yar’Adua in September of that year.

Welcoming guests to the commissioning event, NBC Managing Director, Mr. Roland Ebelt, said: “The commissioning of this facility is the culmination of a commitment made about eight years ago. In 1999, the Coca-Cola System in Nigeria made a commitment to the then newly elected President, Olusegun Obasanjo, to invest over $50 million in the economy. Over the past years, we have fulfilled more than this commitment in several ways, beginning with the commissioning of our ultra modern plant in Benin, we have also invested in modernizing and upgrading all of our production lines as well as our electricity and water supply across the country. Our total investments over years- 2000 to 2007 have amounted to more than N10 billion.”

Source: Naija.com