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.
News
Breaking: Atiku emerges new Deputy Clerk to National Assembly
Sokoto-born seasoned technocrat, Mr. Ibrahim Atiku has been appointed as Deputy Clerk to the National Assembly (DCNA), with effect from February 2, 2025.
This was contained in a letter dated 19th December, 2024 and signed by the Executive Chairman, National Assembly Service Commission (NASC), Engr. Ahmed Kadi Ahmshi.
Ahmshi said the decision was taken during the just concluded 616th Meeting of the Commission, held on Thursday, 19th December, 2024; in recognition of his “hard work” and “administrative competence”.
“The National Assembly Service Commission, at its 616th Meeting held on Thursday, 19th December, 2024, approved your appointment as Deputy Clerk to the National Assembly with effect from 2nd February, 2025.
“This Appointment is in recognition of your hard work and administrative competence. It is therefore expected that you will continue to uphold the confidence reposed in you.
“While congratulating you on your appointment to this exalted position, please accept assurances of our highest esteem”, the letter reads.
Until his appointment, Mr. Atiku was the Director, Finance and Account, House of Representatives, in National Assembly.
He is an Alumnus of Usman Dan Fodio University, Sokoto, and fellow of the Nigerian Institute of Management. Atiku also obtained a Masters degrees in legislative studies as well as a Ph.D. in Legislative Studies.
Atiku also attended various courses home and abroad, among them are, the National Institute for Legislative and Democratic Studies (NILDS), Harvard University, USA, JF Kennedy School of Government USA, Duke University USA, West African Institute of Finance and Economic management, (WAIFEM), Harvard Business School USA, RIPA International UK. among others.
Recall that the NASC had last month, approved the appointment of Barr. Kamoru Ogunlana as Clerk to the National Assembly (CNA).
Both Ogunlana and Atiku are billed to resume their respective offices Feburary 2, 2025, when the current occupants of the offices shall be due for retirement.
News
Jubilation as Gov Mutfwang approves 13th month salary
The governor of plateau state, Caleb Mutfwang has in his passionate commitment to the welfare of public and civil servants in the State, approved that the 13th-month salary be paid to bring a more joyful Yuletide to civil servants in the state.
Governor Mutfwang in a statement by his Director of press and public Affairs, Gyang Bere also directed the swift payment of end-of-the-year bonuses for public and civil servants in the State.
It was gathered that this is the first time in Plateau’s history that the state government is paying workers a 13th-month salary.
This move is a testament to Governor Mutfwang’s desire to implement policies that enhance working conditions for government workers.
The Governor wishes all workers Merry Christmas and a prosperous New Year in advance.
News
Stampedes: You’ve Weaponized Poverty on Nigerians – HURIWA Tells Tinubu, State Govs
The Human Rights Writers Association of Nigeria (HURIWA) has expressed grave concern over the spate of deadly stampedes occurring across the country, attributing the tragedies to the government’s failure to address worsening economic conditions.
The advocacy group accused both federal and state governments of “weaponizing poverty,” creating an environment where desperate citizens now risk their lives scrambling for basic necessities that were affordable just months ago.
The group condemned the most recent stampede in Maitama, Abuja, where ten individuals, including four children, lost their lives during a food distribution exercise at Holy Trinity Catholic Church. Similarly, the group decried the crowd crush at a school fair in Ibadan, which claimed the lives of at least 35 children, and the stampede in Okija, Anambra State, where multiple casualties were recorded during the distribution of palliatives.
HURIWA lamented that these stampedes are the result of severe hunger and deprivation fueled by skyrocketing inflation, poor economic policies, and the weaponization of poverty.
“Nigerians are dying while rushing for staple foods that were affordable just a few weeks before President Bola Ahmed Tinubu took office.
The government’s inability to implement effective economic policies has pushed millions into desperation,” the group stated.
The Maitama incident, which occurred during a charitable outreach to the vulnerable and elderly, claimed ten lives and left eight others injured. In Ibadan, the deaths of 35 children at a school fair organized by the Wings Foundation and Agidigbo FM Radio shocked the nation, while the stampede in Anambra State highlighted the peril of poorly organized relief efforts in a country where millions live in poverty.
According to HURIWA, the removal of fuel subsidies without adequate cushioning measures has exacerbated the cost of living crisis, forcing many Nigerians into extreme poverty.
With over 133 million Nigerians classified as multi-dimensionally poor, according to recent reports, the group noted that hunger and deprivation have reached unprecedented levels.
“This government has turned poverty into a weapon, creating a situation where citizens are dying to secure basic sustenance. This is not governance; it is a tragedy,” HURIWA asserted.
The association emphasized that these recurring stampedes are symptomatic of a deeper crisis in Nigeria’s socio-economic fabric. It warned that the country is dangerously close to the brink of becoming a failed state. “When citizens die in droves just to access food, it is clear that the state is failing in its primary responsibility of safeguarding the lives and welfare of its people,” HURIWA said.
The advocacy group criticized President Tinubu’s administration for implementing poorly thought-out policies that have worsened the economic situation. It pointed out that the rising cost of staple foods, transportation, and other essential goods has left millions unable to meet basic needs.
“Before this administration, staple foods like rice and garri were within reach for the average Nigerian. Today, these have become luxury items, accessible only to a few,” HURIWA noted.
The association also accused state governments of compounding the problem by failing to prioritize grassroots development and welfare. It cited instances where poorly organized charitable events and palliative distributions have led to fatal stampedes, as seen in Anambra and other states.
HURIWA called for an immediate review of economic policies at both federal and state levels, urging leaders to prioritize the welfare of citizens over political and personal gains. “Governments must stop paying lip service to poverty alleviation and take real steps to address the root causes of hunger and deprivation,” the group stated.
The association proposed several measures to prevent future tragedies and address the underlying causes of the current crisis. These include the immediate implementation of comprehensive social safety net programs to provide food, healthcare, and financial assistance to vulnerable populations. HURIWA also called for massive investments in agriculture to increase food production and reduce dependency on imports.
Also, the group urged the federal government to introduce tax relief measures for low-income earners and small businesses to ease the economic burden. It also advocated for the creation of job opportunities through public works programs and partnerships with the private sector.
HURIWA stressed the need for better coordination of relief efforts to prevent overcrowding and ensure safety during palliative distributions. It called on event organizers to collaborate with local authorities and law enforcement agencies to manage large crowds and maintain order.
The advocacy group further emphasized the importance of accountability and citizen participation in governance. It urged Nigerians to demand transparency and hold their leaders accountable for policies that impoverish the masses.
HURIWA also called on President Tinubu’s administration to reverse policies that have exacerbated poverty and introduce people-centered reforms to rebuild public trust.
“This government must realize that the survival of its people is non-negotiable. Urgent steps must be taken to address the root causes of these tragedies and prevent Nigeria from sliding further into chaos,” the group stated.
As the holiday season approaches, HURIWA appealed to wealthy individuals and organizations to step up their philanthropic efforts to assist the less privileged. However, it stressed the need for such activities to be well-coordinated to avoid further tragedies.
The group reiterated its warning that Nigeria is on the verge of a socio-economic collapse. It called on all levels of government to act decisively to reverse the trend and restore hope to the millions of Nigerians struggling to survive.
“The lives lost in Abuja, Ibadan, Anambra, and elsewhere are a grim reminder of the cost of inaction. The government must stop weaponizing poverty and take immediate steps to address the root causes of this crisis. Failure to act now will only push Nigeria further toward the precipice of a failed state,” HURIWA declared.
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this. Your kind donation will help our continuous research efforts.
-
News13 hours ago
Abuja stampede: Wike orders free medical treatment for victims
-
News20 hours ago
FG allocates N960bn for aircrafts, security equipment in 2025
-
Sports12 hours ago
Arsenal’s top coach not happy over Bukayo Saka’s injury
-
Opinion12 hours ago
IBADAN, OKIJA, ABUJA AND THE DEATHLY FATE OF MEKUNUS
-
Metro21 hours ago
‘It’s been hard, even a cup of rice is now a luxury for us’ – Abuja stampede survivors recount ordeal
-
Entertainment21 hours ago
One Billion Users, But Controversies Mount Up For TikTok
-
News21 hours ago
Appeal Court bans Customs from confiscating rice outside land, other borders
-
News21 hours ago
Anambra Govt Mourns Victims Of Tragic Stampede In Okija, Launches Probe