Nestle mulling new investments in Nigeria - Just Food
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Nestle mulling new investments in Nigeria

30 May 2017

Nestle has confirmed it is considering proposals to boost sales in Nigeria by stepping up investment in its production and distribution networks in the country.

A Nestle spokesperson told just-food today (30 May) David Ifezulike, the chairman of the company’s publicly-listed operations in Nigeria, discussed a blueprint to “strengthen operations” in the country with shareholders earlier this month.

The spokesperson said detailed figures are not being disclosed but the proposals include an expansion of Nestle’s operations in the south and south-east of Nigeria. The company “will make a public announcement of the new investments at the appropriate time”, the spokesperson said.

Ifezulike also welcomed moves by Nigeria’s federal government to encourage “local sourcing of raw materials for manufacturing” but urged ministers to “ensure availability of foreign exchange for critical raw materials which cannot be sourced locally”, according to the spokesperson.

In the first quarter of 2017, Nestle “showed an impressive 69% revenue increase” in Nigeria over the year-ago period, the spokesperson added.

Last month, just-food reported the rate at which organic sales across the Nestle group as a whole rose in the first quarter was the slowest this century, although results were dampened by calendar effects and were a tick above analyst expectations. The group said it saw sales in the division housing its operations in Asia, Oceania and Africa rise 4.5% on an organic basis.