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Wobbling economy, inflation, force Guinness’ exit from Nigeria after 74 years

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By Kayode Sanni-Arewa

 

Guinness will join a long list of multinationals, like GlaxoSmithKline and Microsoft, that have left Nigeria, citing the harsh economic climate as making business unprofitable.

The brewery brand 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.

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But the move backfired and caused many multinational companies to suffer huge financial setbacks including Guinness Nigeria whose N61.7 billion loss after tax in Q3 was a 1,000 per cent decrease from the N5.9 billion profit generated in the same period last year.

The loss exacerbated by the naira’s continued downward trend may have informed 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.

Guinness Nigeria Plc, a public limited liability company quoted on the Nigerian Stock Exchange, was incorporated on April 29, 1950, as a trading company importing Guinness Stout from Dublin.

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The Guinness brand has operated in Nigeria since 1950, but with Tolaram’s controlling stake acquisition expected to conclude by 2025, the global brewery brand will have spent 75 years in Nigeria.

In the statement, Guinness said the firm would leave Nigeria next year and hand over to a third-party venture.

“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, however, stated that the sale of its Nigerian brand would not in any way affect its ownership of the Guinness global brand.

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

Diageo’s exit adds to a long list of other multinational companies, like GlaxoSmithKline and Microsoft, that have left Nigeria in the last one to two years, citing the harsh economic climate as making business unprofitable.

Some of Diageo’s popular brands in Nigeria include Smirnoff Ice, Smirnoff Vodka, Orijin Bitters, Malta Guinness, Gordons Orange Sunset, and Dubic Malt.

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Nigerian military authorities place N60m bounty on two most wanted bandits, expose ISWAP commanders

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The Nigerian military has unmasked several senior commanders of the Islamic State West Africa Province (ISWAP) following what it described as a major intelligence breakthrough during ongoing counter-terrorism operations in the Lake Chad region of Borno State, placing a combined ₦60 million bounty on two of the group’s most wanted leaders.

The development came after troops of the Headquarters Joint Task Force (North East), Operation HADIN KAI, recorded a series of successful offensives against ISWAP terrorists operating in northern Borno, leading to the recovery of critical intelligence materials that exposed the identities, operational locations and command structure of several high-ranking insurgent leaders.

Acting Military Information Officer of Operation HADIN KAI, Captain Mohammed Goni, said troops recovered several technical devices and other high-value intelligence materials, including a camcorder allegedly used by the terrorists to produce propaganda videos and document their operations.

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According to him, forensic exploitation of the recovered devices generated actionable intelligence that enabled security forces to identify terrorist hideouts and several senior ISWAP commanders operating within the Mangari–Metele–Dogon Chukun axis along the fringes of the Lake Chad Basin in Abadam and Kukawa Local Government Areas of Borno State.

The military subsequently released photographs of dozens of identified ISWAP leaders and field commanders in a public appeal for information capable of leading to their arrest.

A large intelligence poster bears the inscription: “Most Wanted ISWAP Leaders – We Know Them. You Can Stop Them. These are known ISWAP terrorists and commanders operating in our communities. Your information can save lives and help restore peace.”

The poster contains photographs and aliases of at least 38 suspected ISWAP commanders and fighters believed to be active across northern Borno and the Lake Chad region.

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Jerry Falade loses $2m book deal over AI allegations

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A Nigerian author Jerry Falade has lost a publishing deal worth more than $2 million after concerns emerged that artificial intelligence may have been used in writing or editing his debut crime novel, Call Me, I’ll Hide the Body.

The novel, scheduled for publication in 2028, sparked a bidding war involving 14 publishing houses, with Macmillan U.S.‘s Minotaur imprint reportedly securing the rights.

However, Falade’s literary agents later withdrew the manuscript, saying they could no longer verify that AI was not involved in its creation.

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In an email to publishers, the agents said they initially trusted Falade’s assurance that the manuscript was written and edited without AI, but later concluded they could no longer authenticate how it evolved from its original draft to the final version.

Marc Gerald of Europa Content, which handled the U.S. auction, said an editor first raised concerns about possible AI use. Although the agency initially accepted Falade’s explanation without using AI-detection software, it cut ties with the author on July 29 after saying aspects of his account had changed.

Falade has denied using AI, arguing that Black authors are unfairly subjected to such allegations when their work gains international attention. He noted that some white authors have openly acknowledged using AI without facing similar consequences.

He also referenced U.S.-based Black authors Mia Ballard and HM Wolfe, who lost publishing deals earlier this year over similar claims. Falade added that AI-detection tools are known to produce false positives and maintained that publishing professionals who reviewed the manuscript would have identified any genuine misuse of AI.

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Osun guber: Your uncle will soon become jobless get him one – Uzodimma mocks Davido

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Imo State Governor and Chairman of the All Progressives Congress (APC) National Campaign Council for the Osun governorship election, Hope Uzodimma, has responded to singer David Adeleke, also known as Davido, over comments made ahead of the August 15 governorship poll in Osun State.

According to a report by Premium Times, Davido, while addressing supporters in his capacity as head of the youth campaign mobilisation team for Governor Ademola Adeleke, alleged that a politician from Imo State was planning to interfere in the Osun governorship election.

Although the singer did not mention any name, he alleged that the politician intended to use the election as a political battleground to prove a point and urged the individual to allow the people of Osun State to freely choose their preferred candidate.

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Reacting in a statement issued on Wednesday by his Senior Special Assistant on Electronic and Creative Media, Ambrose Nwaogwugwu, Uzodimma said Davido’s appeal was misplaced and should instead be directed to the people of Osun State, who would ultimately decide the outcome of the election through their votes.

The governor maintained that, as Chairman of the Progressive Governors’ Forum and the APC National Campaign Council for the Osun election, he had consistently advocated a peaceful, free and credible electoral process.

Uzodimma also stated that the APC would continue to appeal to the conscience of Osun voters to support and elect the party’s governorship candidate, Asiwaju Munirudeen Bola Oyebamiji.

He further claimed that many voters in Osun were prepared to vote out Governor Ademola Adeleke over what he described as the administration’s failure to fulfil its campaign promises.

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According to him, indications across the state suggested that a significant number of voters had rejected the current administration and were ready to embrace a new direction by voting for the APC in the August 15 governorship election.

Uzodimma also advised Davido to focus on preparing his uncle for life after office rather than making emotional appeals, insisting that the electorate appeared ready to support the APC candidate.

The Imo governor added that the singer should consider employing Governor Adeleke as a dancer in his music band after the election, expressing confidence that the governor could be out of political office after the governorship poll.

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