The Nigerian presidency has provided clarification regarding Coca-Cola’s decision to withdraw its $1 billion investment pledge, initially made in 2021. In a statement released on Thursday, Bayo Onanuga, Special Adviser to the President on Information and Strategy, addressed reports suggesting that Coca-Cola had failed to honor its previous investment commitment to Nigeria.
Onanuga explained that the company’s original pledge, made three years ago, was put on hold due to the “challenging business environment” that existed in Nigeria at the time. He noted that the company had encountered various obstacles, including the imposition of excise taxes, which significantly impacted its ability to move forward with the planned investment.
“Indeed, Coca-Cola made a similar investment promise in 2021,” Onanuga stated. “However, due to the difficult operating conditions prevalent in the country back then, the company had no choice but to suspend its plans. The excise taxes introduced after the announcement further compounded the situation, making it impossible for the company to fulfill its commitment.”
Onanuga also responded to critics who doubted the company’s renewed $1 billion pledge during a recent visit by Coca-Cola’s global leadership to President Bola Tinubu in Abuja.
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“Some skeptics have expressed doubts about Coca-Cola’s fresh $1 billion investment promise, citing the company’s previous unfulfilled commitment in 2021. However, it’s essential to understand that the current pledge is based on Nigeria’s new economic outlook, which is being strengthened by President Tinubu’s economic stabilization plan,” he said.
The presidential adviser emphasized that Coca-Cola’s investment promises are contingent upon a stable and predictable business environment, which the Tinubu administration is working to provide. He reiterated that the renewed pledge reflects Coca-Cola’s confidence in Nigeria’s economic future under the current government.
In addition to addressing the delayed 2021 investment, Onanuga highlighted that Coca-Cola, together with its local partner, the Nigeria Bottling Company, has already made significant investments in the country. Over the past decade, the two companies have invested a combined total of $1.5 billion in Nigeria’s economy, contributing to its growth and development.
“The Coca-Cola Company, in partnership with the Nigeria Bottling Company, has already injected $1.5 billion into the Nigerian market over the last ten years,” Onanuga added, underscoring the company’s longstanding commitment to the region despite past challenges.
As the economic climate in Nigeria stabilizes, both Coca-Cola and its partners are optimistic about the future, with the newly renewed $1 billion pledge marking a key step in deepening their investment and business activities in the country.