Flour Mills of Nigeria Plc is embarking on an ambitious plan to invest up to $1 billion over the next four years, reinforcing its commitment to expanding its operations and driving economic growth in Nigeria. This announcement comes at a crucial time, aligning with President Bola Tinubu’s economic reforms, which aim to stabilize the nation’s economy and make it more attractive to investors.
John Coumantaros, the chairman of Flour Mills, has emphasized the company’s dedication to doubling its investments in Nigeria. One of the company’s primary initiatives is to increase its sugar production in Niger State from the current 100,000 tons to over 400,000 tons annually. To achieve this, Flour Mills plans to allocate at least $500 million to expand its sugar operations. This substantial investment will not only boost local sugar production but also significantly reduce the need for imports.
In addition to its sugar operations, the company is set to invest $100 million in a new cassava-processing plant, which will eliminate the need for importing cassava starch, a key component in many industrial and food production processes. This move aligns with the government’s drive toward self-sufficiency and import substitution, ultimately strengthening the local economy.
Flour Mills also has plans to diversify its product offerings, including the expansion of its breakfast cereal line, as part of a broader strategy to meet the growing consumer demand for locally produced food products. These initiatives are aimed at cementing the company’s position as a leader in Nigeria’s food industry while contributing to the nation’s food security goals.
The investment will be primarily funded through internal sources, reflecting Flour Mills’ financial strength. However, Coumantaros acknowledges that the scale of capital required is significant and emphasized the need for strategic partnerships. The company is looking to attract both technical and financial partners to support its growth and innovation efforts. By collaborating with experts in the field, Flour Mills hopes to enhance its operations and create more job opportunities for Nigerians.
In addition to these expansions, Flour Mills is undergoing a major restructuring of its business. The company plans to streamline its 22 business units into five distinct companies, each focused on specific sectors. This restructuring is part of a broader strategy to increase efficiency, attract investment, and support the company’s long-term growth ambitions.
As part of its expansion plans, Flour Mills is also looking beyond Nigeria’s borders. The company aims to leverage the African Continental Free Trade Area (AfCFTA) to expand its footprint across Africa, starting with West Africa. This move is in line with its vision of building a pan-African food business, with Nigeria as the headquarters. The AfCFTA provides a unique opportunity for Flour Mills to access new markets and scale its operations across the continent.
Coumantaros also hinted at the possibility of relisting the company on the Nigerian Stock Exchange once the restructuring and expansion plans are complete. A dual listing, both in Nigeria and on other stock exchanges, is also under consideration, potentially positioning Flour Mills as a leading pan-African agro-allied business.
In a time when many multinational companies are scaling back or exiting Nigeria, Flour Mills’ bold investment plans stand out as a vote of confidence in the country’s future. By committing to local production, job creation, and expansion into new markets, Flour Mills is not only reinforcing its position as a key player in Nigeria’s economy but also contributing to the broader goal of driving sustainable growth across Africa.