Flour Mills of Nigeria Plc plans to invest up to 1 billion USD over the next four years in a major expansion and restructuring program. This investment is a welcome boost to President Bola Tinubu’s reform efforts. At least 500 million USD will be directed to expand the company’s sugar operations in the state, aiming to increase production from 1,000 to over 400,000 tons per year.
Expanding Nigeria’s flour mills
Flour Mills of Nigeria Plc, the country’s largest flour milling company, is set to invest up to 1 billion USD over the next four years as part of its expansion and restructuring program, following a proposal from its main shareholder to privatize the company.
This significant funding aims to bolster production capacity and explore new markets across Africa, leveraging the African Continental Free Trade Area (AfCFTA). According to company chairman John Coumantaros, this investment will double Nigeria’s capital infusion, underscoring Flour Mills’ commitment to the Nigerian economy.
This investment aligns with President Bola Tinubu’s reform initiatives at a time when some major companies, such as Unilever Plc and Diageo Plc, are scaling down or exiting the market. Since taking office in May 2023, President Tinubu has rolled out a series of reforms to stabilize the naira, reduce fuel subsidies, and attract more foreign investment to steer the country away from a fiscal crisis.
Restructuring the flour milling company
Coumantaros shared that Flour Mills plans to invest at least 500 million USD in sugar production, aiming to increase output from 1,000 to over 400,000 tons annually. An additional 100 million USD will go toward constructing a cassava processing plant to curb cassava starch imports, along with plans to expand the company’s breakfast cereal offerings.
The 64-year-old milling company will undergo restructuring. Coumantaros revealed plans to streamline over 22 divisions into five companies, stating, « We want to attract technical and financial partners to help us grow our sugar and food businesses. We have numerous ambitious investment and expansion projects », said the CEO.
Promoting investments in Nigerian businesses
« The capital needs will be substantial. Of course, we’ll finance a large portion, but when you grow, you can’t do everything alone. You need to invite the best in the field to support you, providing both expertise and resources to further develop local businesses and jobs », explained a company representative.
Flour Mills is also eyeing broader African expansion, beginning with West Africa, capitalizing on AfCFTA—the largest single market area since the founding of the World Trade Organization.
« With the establishment of AfCFTA, we believe we should not be confined to the Nigerian market », the chairman stated. « Our vision is to build a pan-African food company headquartered in Nigeria, using AfCFTA as a platform to extend our presence throughout the region ».
