News
Asian, Turkish firms takeover from exiting multinationals – Report
By Kayode Sanni-Arewa
Multinational companies continue to exit Nigeria in recent times, some Asian, Turkish and even local companies have been stepping into the spots they vacated.
Last week, Guinness Nigeria Plc announced that Tolaram Group acquired 58.02 per cent shareholding divested by Diageo, its ultimate parent company in a deal which is expected to be finalised in 2025.
President Bola Tinubu had commended Tolaram Group for the expression of faith in Nigeria through the acquisition in a statement issued by his special adviser on media, Bayo Onanuga.
This is the latest in the spree of takeovers in the economy. According to Bloomberg, a local firm, the Fouani Group, operates a diaper and sanitary pad plant in a complex where Procter & Gamble Co. had closed a $300m facility making the same products.
Lagos-based Fidson Healthcare Plc is expanding its manufacturing range after the UK’s GSK Plc closed its Nigerian distribution arm. Turkish diaper maker Hayat Kimya AS has also established itself in Nigeria.
Nigeria, with a population of more than 200 million, is Africa’s most populous nation, in theory presenting a huge market for consumer goods. However, rampant unemployment, widespread poverty and insecurity, a plummeting currency, sky-high inflation and decades of economic mismanagement have turned it into a graveyard for multinational consumer goods companies.
The naira has swung wildly in recent months and is down against the dollar over the past year, the most of any African currency. That’s made it difficult for companies that import goods and service foreign debts to make a profit as they struggle to pass the necessary price increases to consumers. And while the central bank has now cleared a $7bn backlog that companies were seeking to repatriate the difficulty in doing so in recent years made many businesses unsustainable.
The gaps in the market left by the departing multinationals present an opportunity for domestic companies and foreign firms that focus on sourcing raw materials in Nigeria and manufacturing locally, thereby avoiding the currency risk that has hounded some foreign companies out.
And while the departures show just how unattractive the Nigerian consumer market has become they also highlight the success of strategies of companies such as Hayat and Tolaram, which have each turned their brands into household names.
For companies such as Tolaram, used to operating in challenging environments such as Indonesia, the answer has been to localize as many costs as possible. That’s helped it turn Indomie instant noodles into one of Nigeria’s most popular brands and led it into joint ventures with US cereal and snack maker Kellanova and Danish dairy giant, Arla Foods.
“Brands can’t continue to operate the way they’re used to. You need to adapt to the market accordingly,” said an executive director at Tolaram, Girish Sharma.
“There is hardly anything in Indomie that we import. We have our own flour milling, we have our own palm oil refining, we have our packaging,” he disclosed.
Tolaram operates 24 “fully backwardly integrated” plants in Nigeria, meaning the company produces the raw materials they need and is even setting up its oil palm plantations, Sharma said in an earlier interview. GSK, by contrast, imported its products
That doesn’t mean that local firms aren’t struggling.
“In theory, we think we can better manage the difficulties of doing business in Nigeria,” said Jide Ogundare, managing director of MBO Capital Management Ltd, which took over supermarkets run by Shoprite Holdings Ltd. when the South African company quit Nigeria in 2021. “In actual fact, we face the same challenges as the foreigners except that we can’t leave and go elsewhere.”
Still, despite the narrowing margins and reduced spending power, the weaker naira is making Nigerian manufacturing competitive.
“We’re exporting to some West African countries like Mali and East Africa and our target is to export to another five to 10 countries by the end of next year,” said Imokha Ayebae, Fidson’s executive director.
The exodus of firms including Kimberly-Clark Corp., Sanofi SA and Bayer AG is hindering Nigerian President Tinubu’s bid to breathe life into the struggling economy.
Microsoft Corp. in May said it would shut the engineering section of its Africa Development Center in Nigeria two years after it opened. Meanwhile, oil majors Shell Plc, Exxon Mobil Corp. and Eni SpA have all sold their onshore operations to local companies, denting confidence in the industry that accounts for most of Nigeria’s exports and leaving behind decades of environmental devastation.
By contrast, Tinubu’s spokesman said Tolaram’s $70mpurchase of the Guinness stake was a vote of confidence in the Nigerian economy.
“The multi-pronged reforms and interventions being implemented on the economic and financial fronts would deliver sustained growth and enduring profitability,” Bayo Onanuga, special adviser to the president on information and strategy, said in a post on X.
For now, the companies still invested aren’t seeing that uptick. South Africa’s Multichoice Group, the biggest satellite television provider in Nigeria, saw subscriber numbers fall 18 per cent in the year to March saying that Nigerian customers “had to prioritise basic necessities over entertainment.”
Revenue at Johannesburg-based MTN Group Ltd., which runs Nigeria’s biggest mobile phone network, fell 53 per cent in the first quarter of the year when measured in its home currency
But there is also opportunity in challenging environments, said Tolaram’s Sharma, who emphasised the company’s belief in Nigeria’s potential.
“If everything was good I don’t think Guinness would think of partnering with Tolaram. Now when they saw there’s adversity they chose to partner with us,” he said. “Nigeria has 200 million people. They have to eat, they have to drink. We don’t see why Nigeria should not be the country where we’ll continue to stay and continue to invest.”
Speaking on the deal, the Board Chair of Guinness Nigeria, Omobola Johnson, said, “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria. This partnership brings together Tolaram’s deep expertise in manufacturing and distribution, and Diageo’s exceptional capabilities in brand building and innovation. I believe this is a winning combination which leaves Guinness Nigeria extremely well placed to drive further growth in this market.”
Managing Director/Chief Executive Officer, Guinness Nigeria, Adebayo Alli, added, “Today’s announcement marks an exciting moment for Guinness Nigeria, our employees and our customers. I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa, and I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to building an enduring and sustainable business.”
The Managing Director of Tolaram Africa, Haresh Aswani, in his comments also expressed excitement at the deal.
“We are thrilled to welcome Guinness Nigeria, a company with such a rich legacy and strong consumer loyalty, into our ecosystem. This strategic move will expand our significant footprint in the Nigerian market and presents an opportunity to leverage our combined strengths to foster innovation and deliver immense value to our customers and shareholders across the nation,” he said.
By Glori Ikibah
The House of Representatives has passed through second reading, a bill seeking to amend the Agricultural Research Council of Nigeria Act, by expanding its mandate to establish specialised training institutions across the country to deepen national agricultural productivity capacity.
The piece of legislation is titled, ” A Bill for an Act to Amend the Agricultural Research Council of Nigeria Act, Cap. A12, Laws of the Federation of Nigeria, 2004, to Provide for the Establishment of Certain Specialised Colleges; and for Other Related Matters”, was sponsored by the Deputy Speaker, Rep. Benjamin Kalu and six others.
Leading the debate on the general principles, on Wednesday at plenary, Rep. Kalu restated that agriculture remains a vital part of Nigeria’s economy and a key driver of rural development, job creation, food security, and national GDP.
According to him, Nigeria continues to face glaring gaps in research and innovation, especially in regions where unique agricultural potential remains untapped due to the absence of tailored educational institutions.
That is what this bill seeks address, by bridging this gap. He explained that the amendment will not simply be adding institutions, but will serve as an investment in untapped potential, and empowerment of those whose hands feed the nation.
Kalu is hopeful that when the bill is signed into law, it will lead to stronger agricultural research ecosystem; more employment and entrepreneurship opportunities for Nigerians; greater food security and overall economic growth.
He said: “this is not merely to introduce a legislative proposal, but to lay before this Peoples House a vision to take agricultural education into the fabric of our national development strategy and effort. A vision that recognises that research and innovation must not remain in silos or city centres, but must live where the land is tilled, where the livestock roam, where the rivers run.
“Through this amendment, we are not simply adding institutions — we are answering a national call -a call to invest where there is untapped potential, to empower those whose hands feed the nation, and to deepen our national agricultural productivity capacity by expanding the mandate and reach of the Agricultural Research Council of Nigeria through the establishment of specialised training institutions in various parts of our great nation by establishing certain specialised agricultural colleges in strategic locations across the six geo-political zones.
“This bill which comprises three clauses principally seeks to amend the Third Schedule of the Principal Act to provide for the establishment of the following specialized colleges of agriculture – (a) Federal College of Veterinary and Medical Laboratory Technology, Bende, Abia State; (b} Federal College of Land Resources Technology, Takum, Adamawa State.
“(c) Federal College of Land Resources Technology, Ikole Ekiti, Ekiti State; (d) Federal College of Freshwater Fisheries Technology, Ikot Ekpene, Akwa Ibom State; (e) Federal College of Anima} Health and Production Technology, Dange Shuni, Sokoto State; (f} Federal College of Animal Health and Production Technology, Olamaboro, Kogi State.”
By Gloria Ikibah
The Federal Government of Nigeria has extended heartfelt congratulations to the Federal Republic of Germany on the election of Friedrich Merz as the new Chancellor.
Merz, leader of Germany’s conservative bloc, secured his position with 325 votes in the 630-seat Bundestag during a vote held on Tuesday, May 6, 2025. His emergence marks a new chapter in German leadership and has been hailed by Nigeria as a demonstration of the strength and maturity of Germany’s democratic system.
In a statement signed by Kimiebi Imomotimi Ebienfa, spokesperson of the Ministry of Foreign Affairs, Nigeria praised the peaceful and transparent electoral process that led to Merz’s victory and commended Germany for its steadfast commitment to democratic values.
“Nigeria commends Germany’s strong democratic traditions and values, which have once again been demonstrated through a peaceful and transparent electoral process.
“We are confident that under Friedrich Merz’s leadership, Germany will continue to play a pivotal role in advancing global peace, stability, and prosperity”, the statement read.
The statement reaffirmed the long-standing ties between Nigeria and Germany, highlighting key areas such as trade, investment, security, and sustainable development as critical pillars of cooperation.
“As longstanding partners, Nigeria looks forward to deepening bilateral relations with Germany in areas of mutual interest”, Ebienfa said, as he stressed Nigeria’s readiness to collaborate further in multilateral spaces like the United Nations.
Nigeria conveyed best wishes to the new Chancellor for a successful tenure and reiterated its willingness to work closely with Germany for the mutual benefit of both countries and the international community.
Friedrich Merz succeeds Olaf Scholz as Chancellor, taking the reins at a time of significant political and economic shifts in Europe.
…as ECOWAS say airfare within the region is highest
By Gloria Ikibah
Speaker of the ECOWAS Parliament, Hon. Mémounatou Ibrahima, has raised concerns over the soaring cost of air travel across West Africa, warning that it poses a serious threat to regional integration and the free movement of citizens.
Speaking on Tuesday at the opening session of a regional parliamentary meeting in Lomé, Togo, Ibrahima said the current state of air transport within the sub-region is far from ideal, especially for a region that has long preached the gospel of unity and seamless mobility.
“Without affordable and efficient transport systems, the dream of a truly integrated West Africa will remain out of reach,” she said.
The meeting, which falls under the Sixth Legislature’s delocalised sessions, brought together members of the ECOWAS Parliament’s Joint Committee on Infrastructure, Energy and Mines, Agriculture, Environment, and Natural Resources. The session is themed: “Air Transport as a Means of Integration for West African Peoples: A Strategy for Reducing Airline Ticket Costs.”
Participants included aviation experts, policymakers, and civil society actors, all focused on developing workable strategies to address the high cost of airfares—a problem many say discourages both business and cultural exchanges among member states.
Ibrahima underscored the importance of air transport not only for economic growth but as a symbol of unity in a region where road networks remain underdeveloped and borders, though open in theory, are still difficult to cross in practice.
She blamed the soaring airfares to multiple taxes and charges imposed across airports in the region, fragmentation of the aviation market and poor infrastructure.
She said: “The theme that brings us together today, ‘Air Transport as a Means of Integration for West African Peoples: A Strategy for Reducing Airline Ticket Costs,’ is of paramount importance to our community. It reflects a major issue facing our citizens: the prohibitive costs of air travel between our countries, which hinder the free movement of people and compromise our ambitions for regional integration.
“Therefore, there is no need to emphasize the importance of air transport in a country’s economy, especially within a sub-regional community. Indeed, air transport is an essential lever for economic development and sub-regional integration. It promotes trade, stimulates tourism, strengthens cultural and social ties, and contributes to the growth of our economies. In reality, there can be no free movement without transport facilitation. And among these facilitations, transport costs figure prominently.
“These airports contribute financially to state budgets in several ways, including landing fees, air ticket taxes, security taxes, non-aviation taxes, and revenues from commercial activities at the airport. However, it is clear that all these fees make air ticket costs prohibitive within the ECOWAS region, thus hampering a major driver of development: tourism.
“For my part, several factors may contribute to the high cost of air fares in our region. These include, among others: excessive taxation and high airport fees; a fragmented aviation market, with national airlines operating in isolation rather than in synergy; a lack of modern infrastructure adapted to the needs of air transport; weak implementation of agreements liberalizing African airspace, notably the Yamoussoukro Declaration.”
The Speaker further warned of the implications for the region’s long-term goals, noting that the ECOWAS Vision 2050 would remain elusive without an efficient and affordable air transport system.
“If we are to achieve the objectives of the third pillar of ECOWAS Vision 2050, ‘Economic Integration and Interconnectivity,’ it is up to us, as representatives of the peoples of ECOWAS and in view of our responsibility in the Community’s decision-making process, to explore viable and sustainable solutions. Our role is crucial in the realization of these reforms”, she warned.
Ibrahima therefore urged the Legislature to develop strong recommendations that would guide Member States and relevant institutions in establishing a policy framework for more accessible regional air transport.
“I am convinced that the discussions that will take place during this meeting, to which we have invited African air transport experts and leaders, will be fruitful and will lead to concrete proposals to address this major challenge.
“Together, let us commit to working towards more efficient regional aviation, serving the integration and development of our community and for significant progress towards the Sustainable Development Goals (SDGs) and the aspirations that underpinned the African Union’s Agenda 2063”, she added.
Delivering the keynote address, Vice-President of the Togolese National Assembly, Dzereke Yao, described the theme of the meeting as both timely and crucial. He stressed that the issue of air travel within West Africa can no longer be treated as secondary, given its central role in connecting economies and people across the sub-region.
Yao warned that the high cost of airline tickets is steadily eroding the progress made toward regional integration, arguing that it discourages interaction, trade, and mobility among citizens of ECOWAS member states.
He also used the occasion to commend President Faure Essozimna Gnassingbé for what he called his consistent commitment to African unity and cross-border collaboration.
According to him, “Togo continues to play a pivotal role in ECOWAS affairs, thanks to the President’s leadership and the country’s steady investment in aviation and transport infrastructure”.
Yao urged delegates to approach the meeting with a clear sense of purpose, insisting that the deliberations must result in actionable outcomes and not just talk.
“This gathering must produce more than a communique,” he said. “The citizens of West Africa are waiting for real solutions that will make regional travel less of a luxury and more of a right.
“This paradoxical situation merits our attention because our community boasts considerable potential, whether in population size, economic growth, or youthful dynamism.
“I therefore hope that it will lead to solid, pragmatic, and ambitious recommendations,” he urged, adding that a competitive and open airspace would benefit all citizens in the region”, he said.
Yao explained that the geographical location of Togo and modern facilities, gave the country a strategic edge in facilitating regional air mobility.
The vice-president also ememphasised the importance of translating political will into sustainable reforms that will boost connectivity and unlock economic opportunities across the sub-region.
Alao ECOWAS Commissioner for Infrastructure, Energy and Digitalization, Sédiko Douka, disclosed that recent studies conducted by renowned organizations showed that air transportation within West Africa is still less than 10 percent, which represents the lowest.
According to Douka, this situation has become a barrier to the integration of the region. This is as he said the ECOWAS leadership was concerned with the situation and has mandated the Commission to coordinate and harmonize the air transport policies, programs, and projects of Member States.
He stressed the importance of the Lome meeting to address the gap, revealing that the meeting has the blessing of the Heads of State and Government.
He said: “The air tariff in West Africa remains excessively high compared to other countries in the world. In this case, it is less expensive to make the flight to another African country than to travel between two countries in ECOWAS. This situation is counterproductive for the future of the West African region and the collective airspace.
“That recent studies conducted by renowned organizations in 2024 have shown low growth in air transport in West Africa (less than 10%). This, at a time when other regions, for example, record 40.4% for North Africa, 21.4% for Southern Africa, and 20.5% for East Africa. Other comparisons made in terms of domestic flights, intra-African travel, major airlines, and airport size have also shown that West Africa lags far behind these same regions mentioned above.
“In response to this instruction, a meeting of Ministers responsible for Air Transport was convened on November 8, 2024, here in Lomé. The meeting concluded with modalities for the gradual reduction of taxes, fees, and charges aimed at making air transport more affordable. Thus, an Additional Act A/SA.2/12/24 6, relating to the common policy on fees, taxes and air transport charges in ECOWAS Member States and its implementation strategy, were adopted by the Ministers and submitted to the Conference of Heads of State and Government of ECOWAS on December 15, 2024, which endorsed them.”
“Our primary concern is to comply with ICAO principles and recommendations on setting charges, which are: (i) non-discrimination between users, (ii) transparency, appropriate pricing for services provided, and (iii) user consultation.”
“The recommendations made by the Ministers to Member States for efficient regional air transport include, among others: Commit to eliminating all taxes in accordance with these ICAO principles and recommendations;”
“Reduce the passenger service charge and the security charge by 25%; reduce the cost of aviation fuel, etc.”
“All this, with the aim, I say, of making our region efficient in terms of air transport, with its 400 million inhabitants”, he said.
He also charged the meeting to consider the issue of common rules for passenger compensation in the event of denied boarding, cancellation, or significant delays of a flight within the ECOWAS region.
“The task now lies in working towards the implementation of these community texts by ECOWAS member states, whose effective implementation start date has been set for January 1, 2026, a 15-month period to allow them to prepare, particularly from a budgetary perspective”, he stated.
The ECOWAS Commissioner also charged Members of Parliament that the region is counting on them “to implement the community texts that the states themselves initiated and participated in the development, review, and adoption process.”
He therefore urged them to engage strongly with member states to raise awareness about the implementation of these additional acts with a view to the sustainable development of air transport in West Africa.
“As ECOWAS celebrates its 50th anniversary, it is an opportune time to highlight the organization’s visibility. While many achievements have been made in various areas/sectors of regional integration, these remain largely unknown to ordinary citizens, either due to a lack of awareness, communication, or simply the highly political orientation given to ECOWAS’s vision by stakeholders. Opportunities such as these allow you, as a Representative of the People, to gain a comprehensive view of the challenges, issues, strengths/weaknesses, opportunities/threats, and sectoral achievements,” he added.
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