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September 20, 2024

September 20, 2024September 20, 2024 IFMNEWS

Coca-Cola to Drive Economic Growth with $1 Billion Investment in Nigeria

The Coca-Cola System in Nigeria, consisting of Coca-Cola Nigeria Limited and its authorized bottler, the Nigeria Bottling Company (NBC), has announced plans to significantly expand its investments in the country. Over the next five years, provided there is a stable and conducive environment, Coca-Cola intends to boost its investment in Nigeria to $1 billion.

This decision reflects Coca-Cola's strong confidence in the Nigerian market and its future economic potential. The planned investment will support key areas across the value chain, including suppliers, distributors, retailers, and recycling initiatives.

The announcement was made during a visit to the State House in Nigeria, where a delegation from the Coca-Cola System was hosted by President Bola Tinubu. The delegation included both local and international leaders from the Coca-Cola System, such as John Murphy, President and CFO of The Coca-Cola Company; Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company; Henrique Braun, EVP and President of International Development at The Coca-Cola Company; Luisa Ortega, President of Coca-Cola’s Africa Operating Unit; and Naya Kalogeraki, COO of Coca-Cola Hellenic Bottling Company.

John Murphy emphasized that the investment reflects Coca-Cola's commitment to scalable initiatives while maintaining a strong local presence. He noted that Coca-Cola has been part of Africa for over 96 years, and this new investment reinforces the company’s optimism about Nigeria’s future.

Zoran Bogdanovic highlighted Coca-Cola’s deep ties to Nigeria, where it has operated for over 70 years, and expressed excitement about the investment, which aims to promote economic growth and create job opportunities in the country.

The company also emphasized that the investment is not just about business expansion, but also about contributing to the well-being of the communities it operates in, predicting significant social and economic progress. Collaboration with the government and stakeholders is key to achieving sustainable development, according to Luisa Ortega.

President Tinubu praised Coca-Cola’s long-standing commitment to Nigeria and its role in creating job opportunities for over 3,000 people across nine production facilities. He also reiterated his government's commitment to fostering a business-friendly environment, where businesses can easily invest, reinvest, and repatriate their dividends.

Coca-Cola has a legacy of over 96 years on the African continent, and 73 years in Nigeria, employing more than 2,800 people across eight production plants. According to a recent economic impact study by Steward Redqueen, every job created by the Coca-Cola System in Nigeria supports 31 additional jobs in the country.

The Coca-Cola System continues to contribute to Nigeria’s socio-economic development through various sustainability initiatives, including youth empowerment, clean water provision, and enhancing the country's plastic waste collection infrastructure.

September 20, 2024

September 20, 2024September 20, 2024 IFMNEWS

Nigerian Rail Transport Sees 53% Revenue Surge to ₦1.69bn in Q2 — NBS Reports

More Nigerians are increasingly adopting rail transportation, as revenue surged to ₦1.69 billion in the second quarter of 2024, marking a 53.14% rise compared to ₦1.10 billion during the same period in 2023. This information was revealed by the National Bureau of Statistics in a report published on Thursday.

In 2023, the Nigerian Railway Corporation earned ₦1.07 billion in revenue from passengers. The report also showed that 689,263 passengers traveled by rail in Q2 2024, reflecting a 45.38% growth compared to the 474,117 passengers recorded in Q2 2023.

Freight transport by rail saw significant growth as well, with 143,759 tons of goods moved in Q2 2024, compared to 56,936 tons in the same period of 2023. Additionally, the Nigerian Railway Corporation transported 5,940 tons of goods via pipelines in Q2 2024, up from 2,856 tons in Q2 2023.

Revenue from goods transported by rail reached ₦537.36 million in Q2 2024, representing a 206.68% increase compared to ₦175.22 million in Q2 2023. Pipeline transport also contributed to revenue, with ₦42.08 million collected in Q2 2024, compared to ₦12.81 million in the same period last year.

Other revenue sources amounted to ₦994.68 million in Q2 2024, showing a staggering 5,206.68% increase from ₦18.74 million recorded in Q2 2023.

Despite this growth, Nigeria spent 2,470% more on railway debt servicing in the first quarter of 2024 than it generated in rail service revenue. The Nigerian Railway Corporation achieved record revenues of ₦2.12 billion in the first half of 2021, an increase of 31% compared to the same period in 2019, with the primary revenue boost coming from passenger services between Lagos and Ibadan on the new standard gauge railway, while freight transport revenue saw a decline.

September 20, 2024

September 20, 2024September 20, 2024 IFMNEWS

PZ Cussons to Sell African Subsidiaries Amid Forex Challenges

PZ Cussons has announced plans to sell its African subsidiaries, including its Nigerian businesses, due to persistent foreign exchange (forex) challenges. The company made this disclosure in its preliminary financial results for the fiscal year ending May 31, 2024, published on its website.

According to the report, the parent company of PZ Cussons Nigeria is exploring both partial and full sales to reduce its exposure to the sharp fluctuations in the Nigerian naira, which has depreciated by 70% during the period.

The statement read, "Over the past year, we have made significant operational progress and delivered on our strategic priorities despite ongoing macroeconomic challenges. At the same time, we have taken important steps to transform our business and maximize shareholder value by focusing our portfolio on areas where we are most competitive."

The company highlighted that the substantial devaluation of the Nigerian naira has had a major impact on its financial performance. "The 70% devaluation of the naira has significantly affected our reported financials. We have worked hard to mitigate this impact while continuing to serve Nigerian consumers who are grappling with inflation and economic difficulties."

Regarding the potential sale, PZ Cussons noted it had received multiple expressions of interest in its African business. "We have received several inquiries regarding our African operations, recognizing the potential of our brands. This could result in a partial or full sale."

The company also mentioned ongoing efforts to divest other assets, such as its St. Tropez business, and expressed confidence in the long-term potential of PZ Cussons. "Despite the challenges, we are confident that PZ Cussons, with a stronger portfolio of competitive brands, will continue to achieve sustainable, profitable growth."

Commenting on the forex losses, the company disclosed that it recorded a foreign exchange loss of £107.5 million, primarily from the translation and settlement of U.S. dollar-denominated liabilities in its Nigerian subsidiaries, caused by the sharp depreciation of the naira.

Despite the challenges in Nigeria, PZ Cussons highlighted strong performance in its UK personal care business, with double-digit revenue growth.

In September 2023, the company expressed interest in acquiring the remaining 26.73% minority shares in its Nigerian subsidiary at ₦21 per share. As of May 31, 2024, PZ Cussons held a 73.27% stake in the Nigerian subsidiary, equivalent to 2.90 billion shares valued at ₦45.53 billion as of September 18.

However, the Nigerian subsidiary has struggled financially, posting a ₦94.78 billion loss in the third quarter of the 2023/24 fiscal year, compared to a ₦11.213 billion gain in the same period the previous year. In the second quarter, the company recorded a ₦74.14 billion loss, and it remains in a negative net asset position, with liabilities exceeding assets by ₦46.42 billion due to naira depreciation.

September 19, 2024

September 19, 2024September 19, 2024 IFMNEWS

Canada Reduces International Student Study Permit Cap, Tightens Work Permit Rules and More

Canada is making notable changes to its temporary residence programs to better manage the flow of temporary residents and safeguard the integrity of its immigration system. The government is reducing the cap on international student study permits by 10% for 2025 and introducing stricter eligibility criteria for work permits.

These adjustments, as stated in a news release on Thursday, are part of Canada's effort to align its immigration policies with evolving economic and humanitarian needs, while ensuring a sustainable system. A post from Immigration, Refugees, and Citizenship Canada on social media confirmed: "We’re taking these steps to strengthen our immigration system, address the changing needs of our country, and continue to grow our population responsibly."

In 2022, the Canadian government announced plans to limit the intake of international students. Now, the intake cap for study permits will drop from 485,000 to 437,000 in 2025, and this limit will remain in place through 2026. Additionally, updates to the Post-Graduation Work Permit Program aim to better match immigration goals with labor market demands. Starting later this year, work permits will only be granted to spouses of master's degree students in programs lasting at least 16 months and to spouses of foreign workers in managerial or professional roles or in sectors with labor shortages.

The government is also implementing further reforms to the temporary foreign worker program. As part of its goal to reduce the proportion of temporary residents from 6.5% to 5% of the population by 2026, Canada is tightening work permit eligibility, reinforcing employer compliance, and making labor market impact assessments more rigorous to combat fraud.

Immigration Minister Marc Miller emphasized the importance of a sustainable and well-managed immigration system, stating, "Not everyone who wants to come to Canada will be able to, and not everyone who wants to stay will be able to." He added that the government is committed to adapting the system to meet today’s economic demands and set newcomers up for success.

Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, noted that the changes prioritize Canadian workers, ensuring that the Temporary Foreign Worker Program addresses genuine labor shortages.

The measures, the government says, will help maintain system integrity while responsibly growing the country's population.

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Author: IFMNEWS

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