Flour Mills of Nigeria Plc announces plans to invest up to $1bn over the next four years to expand its operations in a recent interview granted by the company’s chairman, John Coumantsros.
Coumantaros said , “Flour Mills of Nigeria Plc plans to invest a minimum of $500m into its sugar operations in Niger State to increase production from the current 100,000 tons to over 400,000 tons annually.
“Additionally In the 2023/2024 financial year, Flour Mills reportedly spent N1.8 trillion on raw materials, which contributed to a 91% drop in profits”. To counter this, the company intends to broaden its product range, including an expansion of its breakfast cereal line.
Coumantaros explained that most of the expansion funding will be sourced internally, but the scale of the investment would require additional expertise. “The capital requirement is going to be very large. While we will fund most of it, we need to invite experts and bring technical expertise to grow our business and create more jobs in the country,” he said.
He added that the company planned to restructure its operations after Excelsior, its majority shareholders, offered to buy out the minority stake and go private.
In addition to its local investments, Flour Mills plans to leverage the African Continental Free Trade Agreement (AfCFTA) to expand its operations across the continent, starting with West Africa.
Coumantaros outlined the company’s vision to establish a pan-African food business, with a potential dual listing on the Nigerian Stock Exchange (NGX) and other African stock markets once the company is restructured and retooled.
The restructuring plan includes consolidating its 22 business units into five distinct companies, a move designed to attract technical and financial partners to support the expansion of its sugar and food businesses. Coumantaros hinted at a potential relisting of the company after its repositioning, suggesting that Flour Mills could return to the market as a diversified pan-African agro-allied business.
The chairman also pointed out that Flour Mills’ $1 billion investment sends a strong signal of confidence in Nigeria’s economy, particularly under President Tinubu’s administration, which has faced challenges as multinationals exited the country. “Coca-Cola recently announced a $1 billion investment, showing that reforms are starting to deliver results,” Coumantaros noted.
