The presidency has clarified the reasons behind Coca-Cola’s withdrawal of its 5-year, $1 billion investment pledge to Nigeria, which was made in 2021.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this information in a statement on Thursday while responding to reports that Coca-Cola had previously made an investment pledge to Nigeria without fulfilling it.
According to Onanuga, the initial pledge by the global beverage company in 2021 was halted as a result of the “challenging business environment” prevailing in the country then.
Onanuga mentioned that after the company’s announcement in 2021, it was impacted by excise taxes, which caused it to suspend its plans to deliver on the promise.
“Naysayers and doubters scorned the $1 billion fresh investment pledge in Nigeria made by the company’s global leadership to President Bola Tinubu today in Abuja, saying the company made a similar promise in 2021.
“Yes, the company made a similar promise three years ago. But it couldn’t fulfil it because of the challenging business environment prevailing in Nigeria then. As the company’s spokesperson said, while the company made the commitment in 2021, it was also hit by excise taxes.
“Our investment pledges are always predicated on a predictable and stable environment. The $1 billion pledge has now been renewed based on the stable environment, which has been promised through the Tinubu government economic stabilisation plan,” Onanuga added.
Meanwhile, the presidency also stated that the company, along with its local partner, Nigeria Bottling Company, has invested $1.5 billion in Nigeria over the past 10 years.
“The Coca-Cola Company and its local partner, Nigeria Bottling Company have already invested $1.5 billion in Nigeria over the space of 10 years,” Onanuga added.
