Nigeria’s Largest Flour Miller Plans $1 Billion Investment

• Over the adjacent 4 years, Flour Mills of Nigeria Plc plans to put up to $1 cardinal for enlargement and restructure
• According to Chairman John Coumantaros, the extremity of the caller funds is to boost concern successful Nigeria
• He asked the medication to deliberation astir lowering indebtedness rates to promote determination improvement and investment

Legit.ng writer Zainab Iwayemi has implicit 3-year-experience covering the Economy, Technology, and Capital Market.

Following an connection from its bulk shareholder to instrumentality it private, Flour Mills of Nigeria Plc, the country's largest miller, intends to put up to $1 cardinal implicit the adjacent 4 years to grow its facilities and restructure.

Flour Mills of Nigeria wants to restructure its much than 22 units into 5 idiosyncratic companies, Coumantaros said. Photo Credit: Flour mills of Nigeria
Source: Getty Images

In an interrogation connected Tuesday, Chairman John Coumantaros stated that the caller backing is astir expanding concern successful Nigeria.

At a clip erstwhile respective companies, including arsenic Diageo Plc and Unilever Plc, are leaving oregon lowering their vulnerability to the West African country, Bloomberg reported that the concern volition enactment President Bola Tinubu's betterment initiatives.

Tinubu has implemented a fig of measures since taking bureau successful May 2023 which see escaped floating the naira and reducing petrol subsidies, in an effort to pull overseas concern and prevention the federation from fiscal collapse.

Flour Mills to put millions

According to Coumantaros, Flour Mills intends to put astatine slightest $500 cardinal successful its sweetener operations successful Niger authorities successful bid to boost output from the existent level of 100,000 tons annually to implicit 400,000 tons.

In bid to halt importing the starch signifier of the tuber into the nation, an further $100 cardinal volition beryllium spent to conception a cassava processing plant, and its meal cereal enactment volition beryllium increased, helium said.

Following Excelsior Shipping Company Ltd.'s connection past period to bargain retired minorities astatine 70 naira a share, the 64-year-old concern volition acquisition a reorganization.

The institution wants to restructure its much than 22 units into 5 idiosyncratic companies, Coumantaros said. “We privation to beryllium capable to pull partners — method and fiscal partners — to assistance us turn our sweetener operations and our nutrient business. We person a batch of ambitious plans for concern and expansion.”

Most of the backing volition beryllium sourced internally, according to Coumantaros. “The request for superior is going to beryllium very, precise large. And of people we volition beryllium backing the bulk of that,” helium said.

Still, helium urged the authorities to see supporting section concern and improvement with little involvement rates. “We recognize the precocious involvement rates are indispensable astatine this constituent successful time, but it’s precise hard to physique industries and put successful caller things if involvement rates are 30%,” helium said.

The cardinal slope has much than doubled the cardinal complaint to 27.25% successful conscionable implicit 2 years to crush ostentation that remains sticky astatine 32.7%

Flour Mills is looking to grow crossed the continent, starting successful West Africa, and volition leverage connected the African Continental Free Trade Area — which erstwhile afloat operational volition beryllium the largest azygous marketplace by country since the enactment of the World Trade Organization.

Nine companies to marque archetypal export nether AfCFTA

Legit.ng reported that the African Continental Free Trade Area (AfCFTA) has fixed the go-ahead for 9 companies to marque their archetypal exports. The companies see Dangote Group, Flour Mills of Nigeria (FMN), and Tolaram.

Other businesses that took vantage of the archetypal AfCFTA accidental are Hwani Industry Nigeria Limited, Le Look Nigeria Limited, Secure ID Limited, Avila Naturalle, Craft Methods Limited, and Ruchim Limited.

Nigeria formally launched intra-African commerce connected Tuesday, July 16, nether the AfCFTA protocol 5 years aft officially assenting to the pact successful Niamey, Niger.

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Source: Legit.ng