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Asian, Turkish firms takeover from exiting multinationals – Report
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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.
News
Thai lady arrested at Lagos airport with boxes of illicit drug consignments As NDLEA intercepts UK-bound drug shipments concealed in walls of crated cartons
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By Kayode Sanni-Arewa
Attempt by a 24-year-old Thai lady, Ms. Pattaphi Wimonnat, to smuggle 43 parcels of Canadian Loud, a synthetic strain of cannabis, weighing 46.60 kilograms into Nigeria through the Murtala Muhammed International Airport, MMIA, Ikeja Lagos has been thwarted by operatives of the National Drug Law Enforcement Agency, NDLEA, who arrested her after discovering the illicit consignment in her boxes.
The suspect who confessed to being a hired drug trafficker was arrested on Thursday 20th February 2025 during the inward clearance of passengers on Qatar Airways flight from Thailand via Doha, Qatar at the arrival hall, terminal 2 of the Lagos airport. She said the drug cartel, which recruited her promised to pay her $3,000 upon successful delivery of the illicit drug consignment in Nigeria.
Another bid by a drug trafficking syndicate to ship 68 parcels of Ghanaian Loud with a total weight of 42.2kg concealed in walls of crated cartons to London, UK, through the export shed of the Lagos airport was also frustrated by NDLEA officers on Friday 21st February. Three suspects: a freight agent and two dispatch riders were initially arrested in connection with the seizure before the mastermind of the shipment, Samuel Bitris, was swiftly traced to his Exodus Estate, Ajah, Lagos home where he was arrested.
At the Port Harcourt Port Complex, Onne, Rivers state, NDLEA officers on Thursday 20th February intercepted 49 cartons containing 49,000 pills of tamol, a brand of tramadol 225mg in a 40ft container during a joint examination of the shipment with men of Customs Service and other security agencies.
In Nasarawa state, NDLEA operatives on Saturday 22nd February arrested two suspects: Bello Adamu, 40, and Pius Azuka, 42 at Kokona/Keffi with 517kg of skunk, while two other suspects: Usman Ruwa, 43, and Yunusa Haruna, 45, were nabbed in a Toyota Corolla car conveying 62.7 kilograms of skunk along Sabon Asibiti road Kontagora, Niger state on Thursday 20th February.
With the same vigour, Commands and formations of the Agency across the country continued their War Against Drug Abuse, WADA, sensitization activities to schools, worship centres, work places and communities among others in the past week. These include: WADA sensitisation lecture to students and staff of Maku Grammar School, Tapa, Oyo state; Comprehensive Secondary School, Orogwe, Imo state; Jama’atu Islamiyya Secondary School, Ankpa, Kogi state; and Owerri-Aba Primary School, Ugwunagba, Imo state, among others.
While commending the officers and men of MMIA, PHPC, Niger, and Nasarwa Commands of the Agency for the arrests and seizures, Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Mohamed Buba Marwa (Rtd) stated that their operational successes and those of their compatriots across the country especially their balanced approach to drug supply reduction and drug demand reduction efforts are well appreciated.
News
NSCDC, Tantita intensify joint efforts to combat oil theft in Niger Delta
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The Nigeria Security and Civil Defence Corps (NSCDC) and Tantita Security Services Limited (TSSL) have intensified their joint efforts to eliminate economic sabotage in the Niger Delta, in line with the Renewed Hope Agenda set forth by President Bola Ahmed Tinubu.
As part of his inspection of NSCDC operations in the area, Commandant-General Dr. Abubakar Audi led a group of senior officers to meet with Chief Kestin Pondi, Managing Director of TSSL, and High Chief Government Ekpemupolo, commonly referred to as Tompolo, in Warri and Oporoza, Delta State.
Audi and his team also toured the operational facilities of NSCDC operatives working with Tantita in far-flung creeks of the Niger Delta and other formations to assess their activities and encourage the frontline security agents.
The Commandant-General while paying a courtesy visit to Pondi said his operational tour of the Niger Delta was to enable him get first hand information of his men on ground and strengthen the relationship between the corps and Tantita.
Audi said the NSCDC would celebrate the gallantry of his men on March 1st adding that the occasion would recognise fallen heroes of the corps and empower the families of deceased officers.
He said: “We place high premium on the welfare of our staff that is why every March 1st we recognise our personnel who died on active duty by assisting their families through payment of life insurance benefits and other empowerment schemes.”
In his remarks, the Managing Director, Tantita Security Services Ltd, Mr Kestin Pondi, heaped praises on President Ahmed Tinubu for providing the enabling environment to fight oil theft in the Niger Delta region.
He assured of closer collaboration with security forces including the NSCDC in the ongoing efforts to tackle pipeline vandalism and oil theft.
Pondi said without the collaborative efforts of the NSCDC and other security agencies, the success record would have been impossible.
He said prior to Tantita’s involvement in combating oil theft, production levels hovered around 800,000 barrels per day, adding that the increased production was because of the collaboration with NSCDC.
He said: “The success recorded in the recent past is not without the collaborative efforts of NSCDC. At the moment we have over 450 personnel in our organisation who have been providing collaborative services to our personnel.
“It is worthy of note that as at the time we came on board, the nation was producing between 600000 – 800000 barrels per day in 2022, but as at today we have gone over 2 million barrels per day and this is largely due to our collaboration with you.
A former President, Ijaw Youths Council (IYC) Worldwide, Engr. Udengs Eradiri, hailed NSCDC and Tantita for their mutual relationship saying their operational style was in line with President Tinubu’s leadership approach of community and stakeholders’ engagements.
Describing President Tinubu as a community man, Eradiri said Tinubu’s approach was centered around the people adding that in similar way Tantita and NSCDC approach instilled confidence in people to protect oil facilities within their domain.
“This is in line with President Tinubu’s leadership style. President Tinubu is a community man. His approach has always been about the people. For some of us who have known him for years ago, we are not surprised that he is doing things differently.
“Recall that when he was campaigning he came to the Gbaramatu Kingdom. President Tinubu expanded the relationship with Tantita and consolidated on what he met and that is why the trajectory has been smooth. President Tinubu is the reason Tantita is succeeding and we want to commend him for believing in Tompolo and the people,” he said.
News
Imo govt warns nightclub, lounge proprietors against selling hard drugs to customers
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The Imo Government has issued a stern warning to hotel owners and nightclub operators, urging them to refrain from permitting the use of hard drugs within their establishments.
This announcement was made in a statement signed by Chief Ezechukwu Obonna, the Special Adviser to Governor Hope Uzodinma on Narcotics and Illicit Drugs Monitoring, and was shared with journalists in Owerri on Saturday.
According to Obonna, the state government has observed that hard drugs, especially cannabis, popularly called ‘loud’, are now being freely sold and consumed in public places, especially in lounges and nightclubs in the state, as if the drug is no longer prohibited by law.
He warned operators of nightclubs and lounges to immediately put an end to the consumption and sale of hard drugs, particularly in their business areas.
He said that any establishment found to be enabling or permitting the use of hard drugs would face severe consequences.
“The government is issuing this stern warning to lounge and nightclub owners across the state to note that the government will no longer tolerate the use of private businesses as havens for illicit drug use.
“We urge all lounge and nightclub owners to take responsibility for ensuring their patrons are not engaging in illicit activities.
“The Imo State Government is committed to protecting the health and well-being of its citizens, and we will not hesitate to take action against those who compromise this effort,” he said.
He added that the International Narcotics Control Board had expressed concerns about the growing trend of drug use and its impact on public health.
According to him, the Imo Government is taking proactive steps to address this issue and ensure a safer, healthier environment for all citizens.
“We appeal to all lounge and nightclub owners to cooperate with the government in this effort and to report any suspicious activities to the authorities immediately. Together, we can create a safer, more responsible tourism and entertainment industry in Imo,” he said.
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