Guinness announces plan to leave Nigeria after 75 years as Tinubu’s inflation wreaks economic havoc.

Guinness will join a long list of multinationals, like GlaxoSmithKline and Microsoft, that have left Nigeria, citing the harsh economic climate as making business unprofitable.

After operating in Nigeria since 1950 and enduring a torrid economic climate on the back of President Bola Tinubu’s administration, Guinness has announced it will exit the Nigerian market and sell off its controlling shares to Singaporean conglomerate Tolaram Group on Tuesday.

The brewery brand recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024, just a few months after Mr Tinubu floated the naira in an effort to unify the currency’s value on the official and parallel foreign exchange markets.

But the move backfired and caused many multinational companies to suffer huge financial setbacks including Guinness Nigeria whose N61.7 billion loss after tax in Q3 was a 1,000 per cent decrease from the N5.9 billion profit generated in the same period last year.

The loss exacerbated by the naira’s continued downward trend may have informed Diageo, Guinness’ parent company, to sell its 58.02 per cent majority stake to the Singaporean group.

“Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company said in a statement Tuesday.

Guinness Nigeria Plc, a public limited liability company quoted on the Nigerian Stock Exchange, was incorporated on April 29, 1950, as a trading company importing Guinness Stout from Dublin.

The Guinness brand has operated in Nigeria since 1950, but with Tolaram’s controlling stake acquisition expected to conclude by 2025, the global brewery brand will have spent 75 years in Nigeria.

In the statement, Guinness said the firm would leave Nigeria next year and hand over to a third-party venture.

“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” said the statement signed by Abidemi Ademola, Guinness’s legal director.

Diageo, however, stated that the sale of its Nigerian brand would not in any way affect its ownership of the Guinness global brand.

Diageo “will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.”

Diageo’s exit adds to a long list of other multinational companies, like GlaxoSmithKline and Microsoft, that have left Nigeria in the last one to two years, citing the harsh economic climate as making business unprofitable.

Some of Diageo’s popular brands in Nigeria include Smirnoff Ice, Smirnoff Vodka, Orijin Bitters, Malta Guinness, Gordons Orange Sunset, and Dubic Malt.

Hit the ground running.

The builder of modern Lagos is destroying Nigeria bit by bit.

For real?

..

Emiloconomy..Thief'nubu using Ojuelegba Economics to mismanage Nigeria..He thinks he can use Oluwole certificate from the Lagoon after stealing Nigeria's mandate to mismanage the country..

..he should go to his Agbero clan he has been giving appointments to mismanage the economy of Nigeria & provide them with the irreparable damaged economics he has been using to develope agberos in Lagos.

..Nigeria don't need his agbero economics..

..what a clueless incompetent tribalistic blockhead..

OP, you will continue to see your favorite Guiness drinks in the market. Diageo divested their stake at Guinness to Tolaram at 103 billion naira.

By the time tinubu finishes with Nigeria nobody will recognize the country again

From frying pan to fire.
The one who build Lagos, is building Nigeria.

Yoruba people have destroyed this country, what a time we find ourselves in this country. God will not forgive Tinubu. It will never be well with Tinubu and APC

Investors lossing money due to inflation.

The price of petrol in neighbouring country goes up in naira equivalent because of naira inflation.

If dollar goes back to 200. Fuel will be less then 200 without subsidy. Buhari removed subsidy more than twice but they are reintroduce because of inflation.

As long as the naira is unstable. There will be back and forth concerning subsidy. How long and how much damage will tinubu destroyed Nigeria before the people removed him?

If tinubu is from South south or south east. The South west would have been the first to demonstrate a protest to remove him.

Massive unemployment on the horizon. Wahala for drinkers and teetotallers.