Multinational alcoholic beverage maker, Guinness has announced plans to leave the Nigerian market due to the losses it incurred and sell off its controlling shares to Singaporean conglomerate, Tolaram Group on Tuesday, June 11.

Guinness has joined a long list of multinationals, like GlaxoSmithKline and Microsoft, that have left Nigeria, citing the harsh economic climate in the country.

The brewery company recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024, just a few months after Mr Tinubu floated the naira in an effort to unify the currency’s value on the official and parallel foreign exchange markets.

Guinness Nigeria's N61.7 billion loss after tax in Q3 was a 1,000 percent decrease from the N5.9 billion profit generated in the same period last year leading Diageo, Guinness’ parent company, to sell its 58.02 per cent majority stake to the Singaporean group.

“Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company said in a statement Tuesday.

“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” said the statement signed by Abidemi Ademola, Guinness’s legal director.

Diageo “will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.”

Magnetic010:
What will happen to the tens of thousands of employees on their payroll? Let's forget tribalism and political alignment for once and think like a people. Who/which sector will absorb the tens of thousands of workers who will be thrown into unemployment by this development. This is a giant step backwards by this country. I feel sad very very sad for those going to be affected personally

Magnetic010:
What will happen to the tens of thousands of employees on their payroll? Let's forget tribalism and political alignment for once and think like a people. Who/which sector will absorb the tens of thousands of workers who will be thrown into unemployment by this development. This is a giant step backwards by this country. I feel sad very very sad for those going to be affected personally

thesicilian:

My patriotic mind is saying maybe indigenous companies should come up to fill the vacuum in the labour and supply market, but my realistic mind is asking me that if the multinational company with millions of dollars and years of experience at their disposal cannot cope, is it the cash-depleted newbie local company with no form of government support whatsoever that will now be able to survive?

thesicilian:
Imagine a single company losing in one year what some states cannot make in 5years. If it's a sole proprietorship it's enough for the owner to commit suicide

Magnetic010:
What will happen to the tens of thousands of employees on their payroll? Let's forget tribalism and political alignment for once and think like a people. Who/which sector will absorb the tens of thousands of workers who will be thrown into unemployment by this development. This is a giant step backwards by this country. I feel sad very very sad for those going to be affected personally

finallybusy:
They can japa with their skills. I bet the company paid well.

Magnetic010:
But do you know just how expensive it is to Japan to a "proper" country now.....tens of millions(naira)