By Masterweb News Desk

The handwriting is gradually appearing on the Nigerian wall of state of affairs. Multinational companies are gradually moving their headquarters out of the country, and in some cases the entire business outfit. Indications have emerged that Nigerian Bottling Company (NBC) Plc, producers of Coca-Cola, may be on its way out of Nigeria, heading to Cote d’Ivoire. NBC manufactures and distributes over 33 brands of Coca-Cola products in Nigeria. If this comes true, NBC Plc which began production in Nigeria in 1953 would join the long list of multinationals and other companies relocating to neighbouring West African countries in the last few years.

NBC according to reports blames the poor state of Nigerian roads, insecurity and erratic power supply and bank crisis as reasons for its planned relocation. They attribute the economic downturn from bank crisis as a multiplier effect on bad business climate in Nigeria from worsening insecurity and poor infrastructure.

The soft drink giant according to sources, has written major stakeholders about its intention to leave Nigeria. This according to the source, they attributed to the poor state of Nigerian roads, insecurity, erratic power supply and bank crisis resulting to dry up of commercial loans. First Bank reportedly, is the only bank out of a total of 24 in the country that is still granting commercial loans. ( Continues below…, )

Coca Cola Products - 24 can case, single can & single bottle

Photos Above: Coca Cola Products - 24 can case, single can & single bottle

A NBC spokeswoman speaking on condition of anonymity, denied plans of the company leaving Nigeria. She said NBC would not easily leave the country as she still maintains 13 production plants in the country hiring about 6,000 workers with 200,000 distribution outlets. She questioned: “Where will we go to?” Mr. Clem Ugorji, Coca-Cola Nigeria, Corporate Communications Head, in a press statement denied relocation plans out of Nigeria by the company. “It is absolute falsehood, without any basis,” Ugorji said.

In what seemed to buttress its rebuttal of alleged plans of relocation, Coca-Cola embarked on its traditional Nigerian Christmas tree lighting ceremony started in 2007. On December 10, Lagos State Governor, Babatunde Fashola, lighted Coca-Cola Christmas tree, described as the tallest Christmas tree in Africa. The event took place at the National Arts Theatre, Iganmu, Lagos, where Coca-Cola Nigeria set up the presumed tallest African Christmas tree. The Christmas tree has over one thousand branches adorned with over 7,500 ornaments and illuminated with 40,200 bulbs and light-emitting diodes.

The colourful tree-lighting ceremony was attended by dignitaries from across the country, including media executives, news reporters, music and Nollywood celebrities. Coca-Cola Nigeria Managing Director, Islay Rhind, speaking at the event explained that the idea to grow the tallest Christmas tree in Africa was conceived in 2007. He said: “We have started a tradition by introducing something different in Africa. The tree is not just a tree. It is a reflection of Nigeria’s cultural heritage and tonight we would be recognizing some Nigeria’s great cultures.” ( Continues below…, )

Coca Cola Nigeria Xmas Tree

Photos Above: Coca Cola Nigeria 2009 Xmas Tree presumed the tallest in Africa

Coca-Cola has over the years raised its investment profile in Nigeria. In 1999, shortly after the swearing-in of Obasanjo as President of Nigeria, NBC led a delegation to Aso Rock to register support for the new administration. The delegation during it’s meeting with Obasanjo promised to support Nigeria’s economy through increased direct investments. NBC invested over N10 billion naira in the country between 2000 to 2007.

In 2005, the company made an investment of $150 million in manufacturing and new agricultural initiatives in the country. The investment was said to be the largest single injection of foreign funds in the country for some time by a private sector company. In 2007, NBC summed up their promise with the building of the Abuja plant. The Abuja plant was commissioned by President Umaru Yar’Adua in September of that year.

Welcoming guests to the commissioning event, NBC Managing Director, Mr. Roland Ebelt, said: “The commissioning of this facility is the culmination of a commitment made about eight years ago. In 1999, the Coca-Cola System in Nigeria made a commitment to the then newly elected President, Olusegun Obasanjo, to invest over $50 million in the economy. Over the past years, we have fulfilled more than this commitment in several ways, beginning with the commissioning of our ultra modern plant in Benin, we have also invested in modernizing and upgrading all of our production lines as well as our electricity and water supply across the country. Our total investments over years- 2000 to 2007 have amounted to more than N10 billion.”

Ebelt continued: “We are proud today that we have made good our commitment, culminating with the commissioning of the Abuja plant, a state-of-the art facility that can compete with any modern bottling facility in the world. The commissioning of this plant, our 13th in the country, further re-affirms our commitment to the Nigerian economy and to all our stakeholders- the government of the Federal Republic of Nigeria, the more than 50,000 stakeholders who are vital to the sustainability of our business, our customers who have made our products the most popular in the country, our customers whose support and enthusiasm for the business is much appreciated, our suppliers who provide the needed service on time, associates of other companies, and last but not the least, the Coca-Cola Company and the Coca-Cola Hellenic Bottling Company, whose partnership and substantial technical support are so vital to our continuity as well as our staff who strive each day to ensure the success of the business.”

On a different note, a Nigerian industry source speaking on condition of anonymity with regards to Coca-Cola’s reported relocation bid, said: “Repeatedly, the macroeconomic and micro-economic conditions in the country are failing companies, as they become very uncompetitive. Though the closure may not affect adversely the availability, pricing and bottling of the company’s beverages, it is again sad to note that some jobs will be lost. The fact remains that some employed Nigerians would be out of jobs not for incompetence, fraud or retirement but again, because of the failure of the government to provide an enabling business environment. It is clear that Nigeria may have the large market to absorb products, but it does not have the business environment to nurture the production of these products. This probably accounts for why manufacturing companies are considering going to the neighbouring countries to produce and eventually return to Nigeria to sell the products.”

Most consumer goods in Nigeria today, are no longer produced in the country. A look at the labels on these goods would confirm this. This means that Nigeria, ‘The Giant of Africa’ with a population of 150 million, relies on goods from abroad for survival.

who cares? Cote D'Ivoire? Good luck to them - their loss is another man's gain - many go, many come, that is life.

. . .and they complained abt the state of roads like their trucks did not aid in the deplorable state of our roads.
Its time the govt make all these run-away companies pay a huge ransome for their own contribution to the negativities in 9ja b4 they bolt off.

I think this is a great news.
If i was the owner of those coys, i would have left longest time ago.
It is not profitable running biz in Nigeria.
Cardbury was debating to leave before too and another Tire manufacturing coy, how can they be profitable considering how much they uses daily to power the generator, no good road, no security, nothing.

Any business that says its not profitable in a country of 140million people is talking bull crap, simple and straight forward.

Paroh_frey:

Any business that says its not profitable in a country of 140million people is talking bull crap, simple and straight forward.

Do u understand the concept of biz a all?
So cos the population is 140 Million people, that automatically guarantee profit.
BTW, do u know what it means to power generator on a daily basis and have to repair your truck every second, cos the shocks are bad with the useless roads that we ave, and you have to crash all your bottles, cos your truck has to avoid some useless holes? i bet u dont.
When you start a biz, i am sure you will halla.

KFC just arrived.

Nigeria continues to get poorer and poorer. . .
Where in hell is Yaradua?

Fhemmmy:

Do u understand the concept of biz a all?
So cos the population is 140 Million people, that automatically guarantee profit.
BTW, do u know what it means to power generator on a daily basis and have to repair your truck every second, cos the shocks are bad with the useless roads that we ave, and you have to crash all your bottles, cos your truck has to avoid some useless holes? i bet u dont.
When you start a biz, i am sure you will halla.

teach me na, Mr Know it all!

they will be missed but see this soda ad from the state of New York:



https://www.youtube.com/watch?v=-F4t8zL6F0c


it's being touted as one of the most disgusting commercials ever

http://www.huffingtonpost.com/2009/12/14/anti-soda-ad-most-disgust_n_391062.html?page=2&show_comment_id=36342733#comment_36342733

Nigeria without coca cola? will my people be able to survive? they take soda like water.

chei.Things de hard for this country.

Paroh_frey:

teach me na, Mr Know it all!

This is not a know it all matter . . . . .na common sense.

I can gues it is recession related issue (some global trend) any proves, ideas

Hi,
I think what ever the problems and what ever issues are happening to the same that no one cares and also the issues made much more but then also no one bother,
Thanks

Adiue and fare thee well coca cola. At least it will be harder to get all these bad diseases now

nwatamiss:

Adiue and fare thee well coca cola. At least it will be harder to get all these bad diseases now

And Coca Cola is the sources of those bad dseases?