Taiwo Hassan 
The huge losses running into trillions of naira posted by major multinational firms in the country’s food and beverages industry in the 2023 financial year (FY’23) results at the Nigerian Stock Exchange (NGX), is already forcing major multinational brewery companies to start contemplating exiting the country amid harsh operating environment.
The results showed that stifling foreign exchange (FX) from the floating exchange rate, energy crisis, multiple taxes to FIRS and other states’ IRS, including MDAs, high tariff payments on alcohol drinks among others are some of the reasons for this.
The latest major multinational brewery firm to join the array of foreign companies to exit the Nigerian market is Guinness Nigeria Plc., which has agreed to sell 58.02 per cent shareholding to Singapore-based Tolaram Group. Guinness made this announcement via a press release on the website of the NGX in Lagos yesterday.
This announcement is the latest in a string of major multinational organisations exiting the country, citing tough economic challenges. In its press release on the NGX website, Guinness said the transaction is expected to close in fiscal 2025 pending regulatory approvals.
Guinness, which has been operating in Nigeria since 1950 (74 years ago) and has endured a torrid economic climate on the back of President Bola Tinubu’s administration.
Specifically, the brewery brand recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024, just a few months after the President floated the naira in an effort to unify the currency’s value on the official and parallel foreign exchange markets.
“Under the terms of the agreement signed today, 11 June 2024…Tolaram will enter into a long-term licence and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brand,” a statement from Guinness Nigeria said.
Diageo, while selling its controlling stake, will maintain ownership of the Guinness brand, ensuring its legacy continues under the stewardship of Tolaram.
While reacting to the news of Guinness’ exit, the Director-General of Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Mr. Sola Obadimu, told New Telegraph that businesses are going through torrid times in the country.
Obadimu said: “Businesses are going through a period of downturn. If you check the audited reports of most multinational companies for last year (2023), they ran massive losses, some of them are contemplating leaving Nigeria, which of course, you know this.”
