Eben Joels is the managing partner of Stransact Chartered Accountants and Audit , an RSM correspondent firm in Nigeria. In this interview with BusinessDay’s Joshua Bassey , he assesses why the FG should be worried about the exit of multinationals from Nigeria, the recapitalisation of banks, and the role of the CBN in stabilising the volatile economy. Excerpts.
Diageo, owner of Guinness Plc, is pulling out of Nigeria and has sold its 58 percent equity in the business to Singapore-based Tolaram. What is your thought on this, and what does it portend for the immediate future? Diageo’s decision to withdraw from Nigeria and sell its stake in Guinness Plc to Tolaram indicates that it sees better opportunities elsewhere or perceives challenges in the Nigerian market that outweigh the potential benefits. This move might reflect a strategic shift in Diageo’s global portfolio or a reassessment of its investment priorities.
Very clearly, Diageo has fashioned a more profitable way to derive income from Nigeria without having to deal with the harsh operating environment for businesses. For Tolaram Group, they probably see this acquisition as an opportunity to solidify its presence in Nigeria. They already operate in Nigeria primarily through their subsidiaries in various industries, such as Dufil Prima Foods Plc, which produces the popular Indomie instant noodles, and the Lekki Deep Sea Port project.
The acquisition of Diageo’s stake in Guinness indicates that they see value in th.
