News

Guinness Considers Exit from Nigeria After 75 Years Due to Economic Challenges

Published

6 months ago

June 11, 2024

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 1000 per cent increase from the N5.9 billion revenue 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.

Abuja Reports

NAPPS Ends 2024 in Grand Style, Praises School Owners’ Resilience

Published

16 hours ago

December 7, 2024

Samson Adeyanju

By Our Correspondent

The National Association of Proprietors of Private Schools (NAPPS), FCT Chapter, marked the end of 2024 with a grand celebration, reflecting on a year of challenges and triumphs.

The event, held at Glisten International Academy, Jahi – Abuja, brought together school owners, stakeholders, and supporters for a moment of relaxation, gratitude, and unity.
Speaking at the gathering, the FCT NAPPS Chairperson, Chief Mrs Rukayat Ruth Agboola acknowledged 2024 as one of the most turbulent years for private schools, citing financial burdens from accumulated debts, contentious levies, and operational pressures.
Despite these obstacles, she praised school proprietors for their resilience and dedication.
“This year tested our limits, but we stood strong together. With God’s grace and our collective efforts, we navigated the storm,” she stated.
The event featured support from area council chairmen and generous donors, whose contributions ensured the success of the celebration.
The President also commended Glisten International Academy, Jahi, for hosting the event at a reduced cost, emphasizing that the gathering symbolized hope and renewed strength for the education sector.
As attendees enjoyed the festivities, the President encouraged continued collaboration to overcome future challenges, declaring, “This celebration is a testament to our resilience and commitment to building a better future for education in Nigeria.”

Defence and Security

CDS Advocates Developmental Journalism for National Security

Published

19 hours ago

December 7, 2024

Samson Adeyanju

By Njoku Chijioke

The Chief of Defence Staff, General Christopher Musa, has called on Nigerian journalists to embrace developmental journalism, urging them to tell evidence-based stories that positively portray the country and foster global confidence in Nigeria’s security efforts.
Speaking at a one-day roundtable organized by the Defence Correspondents Association of Nigeria (DECAN), in Abuja on Thursday, General Musa emphasized the role of the media in advancing national security and cohesion.
“Developmental journalism promotes public awareness, informs policy decisions, and holds stakeholders accountable while fostering national stability,” he said.
He urged journalists to collaborate with security agencies to amplify Nigeria’s sovereignty and safeguard its interests globally.
Coordinator of the National Counter-Terrorism Centre, Major-General A.G. Laka, pledged the centre’s support for media initiatives aimed at countering terrorist propaganda and enhancing public understanding of security challenges.
In a keynote paper, Major-General Chris Olukolade (Rtd) highlighted the practices of Western journalists in handling sensitive security information.
“Journalists should focus on the human impact of security issues and prioritize national interest while maintaining professionalism,” he advised.
The event underscored the media’s critical role in shaping narratives that support Nigeria’s fight against insecurity and foster unity.

News

FG Launches Job Initiative for 93,731 Nigerians, Prioritizes Digital Skills Training

Published

19 hours ago

December 7, 2024

Samson Adeyanju

By Jesusemen Oratokhai

The Federal Government has unveiled the Renewed Hope Employment Initiative (RHEI), targeting 93,731 job opportunities across Nigeria, with a strong focus on digital skills.

Flagged off by the Minister of Labour and Employment, Muhammad Dingyadi, at the National Directorate of Employment (NDE), Skills Acquisition Centre in Bwari, Abuja, the initiative aims to empower at least 10 individuals from each of the country’s 8,809 electoral wards.

Minister Dingyadi, represented by Mr. John Nyamale, emphasized the government’s commitment to addressing unemployment through sound policies and skill development.

“This initiative aligns with our goal to tackle economic challenges by creating jobs through skill acquisition across various sectors,” he stated, urging beneficiaries to maximize the opportunity.

Of the 93,731 beneficiaries, 40,000 will receive training in ICT and digital skills, a strategic move to equip Nigerians with 21st-century competencies. Additionally, 3,000 slots have been allocated for persons with special needs, according to NDE Director-General Silas Agara.

“This program is designed to produce globally competitive youths and address poverty through entrepreneurship by providing tools, equipment, and startup capital,” Agara explained.

The Minister of Humanitarian Affairs, Prof. Nentawe Yilwatda, noted that the initiative aligns with efforts to lift 10 million Nigerians out of poverty.

“If fully implemented, this program will significantly reduce poverty levels nationwide,” he remarked.

The RHEI represents a bold step toward equipping Nigeria’s workforce with both traditional and emerging skills critical for economic growth.