In a recent interview, Oluchi Chibuzor, the Chairman of Flour Mills of Nigeria (FMN) Plc, shared exciting news about the company’s ambitious plans to invest up to $1 billion over the next four years to expand its operations. This decision reflects FMN’s commitment to increasing investment in Nigeria, a sentiment Coumantaros was eager to emphasize.

“We believe that our plan to invest $1 billion in the Nigerian market will serve as a significant boost of confidence for President Tinubu,” Coumantaros explained. “Over the past eighteen months, we’ve seen several major multinationals in the Pharmaceutical and Consumer Goods sectors exit the country. However, with the reforms being implemented, we’re starting to see positive developments, as evidenced by Coca-Cola’s recent announcement to invest $1 billion in Nigeria for expanding production and distribution.”

Specifically, FMN has earmarked a minimum of $500 million for its sugar operations in Niger State, aiming to ramp up production from the current level of 100,000 tons to more than 400,000 tons annually. Additionally, the company plans to invest $100 million in establishing a cassava-processing plant to eliminate the need for cassava starch imports. Coumantaros noted that in the fiscal year 2023/2024, FMN spent approximately N1.8 trillion on raw materials, which has led to a 91% decline in profit.

Coumantaros also shared insights into FMN’s strategy for expanding its breakfast cereal product line, highlighting that most of the funding will come from internal sources. “The requirement for capital is considerable. While we will finance the majority ourselves, as we grow, it’s crucial to bring in experts from the field who can provide technical expertise and support our growth, helping to create more jobs in Nigeria,” he stated.

The chairman also addressed organizational changes in light of a local partner’s proposal to buy out its minority stake and transition to a private entity. “We plan to restructure our operations from more than twenty-two business units into five distinct companies. Our goal is to attract both technical and financial partners to bolster the growth of our sugar and food businesses. We have ambitious plans for investment and expansion.”

Looking beyond Nigeria, Coumantaros expressed FMN’s vision for pan-African expansion, particularly through the Africa Continental Free Trade Area (AfCFTA). “With the AfCFTA now in effect, we firmly believe that we shouldn’t limit ourselves to the Nigerian market. Our vision is to establish a pan-African food business with a headquarters in Nigeria, leveraging the AfCFTA to broaden our reach across the continent, starting from West Africa,” he concluded.