FLOUR MILLS OF NIGERIA TO INVEST $1 BILLION OVER FOUR YEARS IN MAJOR EXPANSION PLAN
Investment Announcement: Flour Mills of Nigeria Plc, the largest milling company in the country, revealed plans to invest $1 billion over the next four years to expand its production facilities. The company aims to strengthen its presence in the Nigerian market and drive further growth.
Key Areas of Investment:
Sugar Operations: A significant portion of the investment, $500 million, will be allocated to expand sugar production in Niger State. This will increase output from 100,000 tons to over 400,000 tons annually, reinforcing Nigeria’s sugar production capacity.
Cassava Processing: Flour Mills will also invest $100 million to establish a cassava-processing plant aimed at reducing the need for cassava starch imports.
Cereal Product Line: The company plans to expand its breakfast cereal product line, further diversifying its food production portfolio.
Funding and Partnerships: Most of the funding will be sourced internally, though Flour Mills plans to bring in technical and financial experts to support its operations, ensuring sustainable growth and job creation within Nigeria.
Business Restructuring: As part of its growth strategy, Flour Mills intends to restructure its 22 business units into five separate companies. This restructuring is designed to attract more partners and align with its vision of expanding across Africa.
Pan-African Expansion: With the Africa Continental Free Trade Area (AfCFTA) now in place, the company sees an opportunity to grow beyond Nigeria. The goal is to establish a pan-African food business headquartered in Nigeria, expanding into West Africa and beyond.
Dual Listing Plans: Flour Mills also hinted at a potential dual listing on the Nigerian Exchange (NGX) and another stock market after completing its restructuring and expansion, further solidifying its position in the African market.
Boost to Nigeria’s Economy: This $1 billion investment aligns with President Tinubu’s economic reforms, which have encouraged major multinationals, such as Coca-Cola, to invest in Nigeria, indicating growing confidence in the country’s market potential.
The investment is expected to enhance Nigeria's food security, create jobs, and boost the local economy, especially in the agricultural and manufacturing sectors.
Investment Announcement: Flour Mills of Nigeria Plc, the largest milling company in the country, revealed plans to invest $1 billion over the next four years to expand its production facilities. The company aims to strengthen its presence in the Nigerian market and drive further growth.
Key Areas of Investment:
Sugar Operations: A significant portion of the investment, $500 million, will be allocated to expand sugar production in Niger State. This will increase output from 100,000 tons to over 400,000 tons annually, reinforcing Nigeria’s sugar production capacity.
Cassava Processing: Flour Mills will also invest $100 million to establish a cassava-processing plant aimed at reducing the need for cassava starch imports.
Cereal Product Line: The company plans to expand its breakfast cereal product line, further diversifying its food production portfolio.
Funding and Partnerships: Most of the funding will be sourced internally, though Flour Mills plans to bring in technical and financial experts to support its operations, ensuring sustainable growth and job creation within Nigeria.
Business Restructuring: As part of its growth strategy, Flour Mills intends to restructure its 22 business units into five separate companies. This restructuring is designed to attract more partners and align with its vision of expanding across Africa.
Pan-African Expansion: With the Africa Continental Free Trade Area (AfCFTA) now in place, the company sees an opportunity to grow beyond Nigeria. The goal is to establish a pan-African food business headquartered in Nigeria, expanding into West Africa and beyond.
Dual Listing Plans: Flour Mills also hinted at a potential dual listing on the Nigerian Exchange (NGX) and another stock market after completing its restructuring and expansion, further solidifying its position in the African market.
Boost to Nigeria’s Economy: This $1 billion investment aligns with President Tinubu’s economic reforms, which have encouraged major multinationals, such as Coca-Cola, to invest in Nigeria, indicating growing confidence in the country’s market potential.
The investment is expected to enhance Nigeria's food security, create jobs, and boost the local economy, especially in the agricultural and manufacturing sectors.