Coca-Cola To Leave Nigeria - Categories: News, Nigerian News, World News, African News - admin @ 12:11:35 am
*Coca-Cola To Leave Nigeria
By Masterweb News Desk
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. ( Continues below…, )
Coca Cola Products - 24 can case, single can & single bottle
Photos Above: Coca Cola Products - 24 can case, single can & single bottle
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.” ( Continues below…, )
Coca Cola Nigeria Xmas Tree
Photos Above: Coca Cola Nigeria 2009 Xmas Tree presumed the tallest in Africa
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.”
Ebelt continued: “We are proud today that we have made good our commitment, culminating with the commissioning of the Abuja plant, a state-of-the art facility that can compete with any modern bottling facility in the world. The commissioning of this plant, our 13th in the country, further re-affirms our commitment to the Nigerian economy and to all our stakeholders- the government of the Federal Republic of Nigeria, the more than 50,000 stakeholders who are vital to the sustainability of our business, our customers who have made our products the most popular in the country, our customers whose support and enthusiasm for the business is much appreciated, our suppliers who provide the needed service on time, associates of other companies, and last but not the least, the Coca-Cola Company and the Coca-Cola Hellenic Bottling Company, whose partnership and substantial technical support are so vital to our continuity as well as our staff who strive each day to ensure the success of the business.”
On a different note, a Nigerian industry source speaking on condition of anonymity with regards to Coca-Cola’s reported relocation bid, said: “Repeatedly, the macroeconomic and micro-economic conditions in the country are failing companies, as they become very uncompetitive. Though the closure may not affect adversely the availability, pricing and bottling of the company’s beverages, it is again sad to note that some jobs will be lost. The fact remains that some employed Nigerians would be out of jobs not for incompetence, fraud or retirement but again, because of the failure of the government to provide an enabling business environment. It is clear that Nigeria may have the large market to absorb products, but it does not have the business environment to nurture the production of these products. This probably accounts for why manufacturing companies are considering going to the neighbouring countries to produce and eventually return to Nigeria to sell the products.”
Most consumer goods in Nigeria today, are no longer produced in the country. A look at the labels on these goods would confirm this. This means that Nigeria, ‘The Giant of Africa’ with a population of 150 million, relies on goods from abroad for survival. Could this mean the of the giant of Africa (for mouth  )?!  How great the mighty crumbles. Nigeria we truely hail thee  |
