Guinness Announces Plan to Leave Nigeria After 75 Years.
After operating in Nigeria since 1950, Guinness has announced its decision to exit the Nigerian market. The company cited the harsh economic climate under President Bola Tinubu’s administration as the primary reason for its departure.
Financial Losses Under Tinubu’s Policies
Guinness Nigeria recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024. This loss came shortly after Tinubu floated the naira to unify the currency’s value across official and parallel markets, a move that backfired, causing significant financial setbacks for many multinational companies, including Guinness.
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Diageo Sells Majority Stake to Tolaram Group
Diageo, the parent company of Guinness, decided to sell its 58.02% majority stake in Guinness Nigeria to the Singaporean conglomerate Tolaram Group. This decision was influenced by the continued downward trend of the naira and the resulting financial losses.
Sale Agreement: Tolaram will acquire Diageo’s shareholding and royalty agreements for continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.
Completion Date: The transaction is expected to be completed by fiscal 2025, pending regulatory approvals in Nigeria.
Historical Context and Future Plans.
Guinness Nigeria Plc was incorporated on April 29, 1950, initially importing Guinness Stout from Dublin. Over the years, it became a significant player in the Nigerian market.
Despite Diageo’s exit, the company emphasized that it will retain ownership of the Guinness brand globally, which will be licensed to Guinness Nigeria for the long term.
Broader Economic Impact
Diageo joins a growing list of multinational companies, such as GlaxoSmithKline and Microsoft, that have left Nigeria in recent years due to the challenging economic environment. The exit of these companies highlights the broader impact of Nigeria’s economic policies on international businesses.
Key Brands and Products
Some of Diageo’s popular brands in Nigeria include:
- Smirnoff Ice
- Smirnoff Vodka
- Orijin Bitters
- Malta Guinness
- Gordons Orange Sunset
- Dubic Malt
The departure of Guinness after 75 years marks a significant shift in Nigeria’s business landscape. As Tolaram Group takes over, the future of Guinness Nigeria will unfold under new management, continuing the legacy of one of the world’s most renowned beer brands.
List of Companies That Have Left Nigeria Since President Bola Tinubu Took Office:
- GlaxoSmithKline (GSK)
- Procter & Gamble (P&G)
- Sanofi
- Diageo
- Equinor
- PZ Cussons
- Kimberly-Clark
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