Reports and social media posts falsely claim Guinness is leaving Nigeria

Tonye BAKARE / AFP Nigeria
·3-min read

Nigeria’s unrelenting economic crisis has forced several major multinationals to shutter their operations in Africa’s most populous country. Economic hardship has also fuelled disinformation, including a recent claim that alcohol beverage company Guinness was exiting the country. But the claim is false. Diageo, which owns majority shares in the company, has agreed to sell its stake to Tolaram Group, which also operates in the country. The deal will see Diageo hold onto the Guinness brand name and ownership of its spirit business in Nigeria where it will continue to operate.

“Guinness announces plan to leave Nigeria after 75 years as Tinubu's inflation wreaks economic havoc,” reads the title of a story by Nigerian news outlet Peoples Gazette.

<span>A screenshot of the false claim, taken on June 12, 2024 </span>
A screenshot of the false claim, taken on June 12, 2024

Peoples Gazette also published the headline on its X and Facebook accounts. The claim has been reposted more than 5,800 times since it was shared on X on June 11, 2024.

Several other accounts on X (including here and here) and Facebook (here and here) shared the same claim.

Economic hardships, insecurity, and rising production costs have forced several companies out of Nigeria in recent years.

In December, consumer goods firm Procter & Gamble announced plans to discontinue manufacturing in Nigeria, noting that “it’s very difficult for us as a US dollar-denominated company to create value” (archived here).

British pharmaceutical giant GlaxoSmithKline also exited Nigeria last year archived here).

Oil giant Shell announced in January that it was selling one of its Nigerian onshore subsidiaries (archived here). The move sparked misleading claims verified by AFP Fact Check.

The allegation that Guinness has shut down all operations in Nigeria is also false.

Not leaving

On June 11, 2024, Diageo, which owns 58.02 percent of Guinness Nigeria, announced that it was transforming its business model in Nigeria (archived here).

The transformation entailed Diageo selling all its majority stake in the Nigerian subsidiary to Tolaram Group.

As part of the deal, Tolaram Group entered licence and royalty agreements with Diageo to continue using the Guinness brand name and produce “its locally manufactured Diageo ready-to-drink and mainstream spirits brands in Nigeria”.

However, Guinness Nigeria, which is listed on the Nigerian stock exchange, will be owned by Tolaram Group.

The Singapore-based multinational has large operations in Nigeria, where its subsidiaries and joint ventures produce consumer goods (archived here).

It also has construction and logistics businesses in Nigeria.

The transaction with Diageo is still subject to regulatory approvals and will only be completed in 2025.

Diageo said it would “remain in the country through its wholly owned international premium spirits business built to serve a wider geographic reach across West Africa, with Nigeria as one of the main operational hubs”.

<span>A screenshot of the Guinness Nigeria press statement, taken on June 13, 2024</span>
A screenshot of the Guinness Nigeria press statement, taken on June 13, 2024

Meanwhile, despite Nigeria’s economic challenges, the company’s business has remained profitable (archived here).

Guinness Nigeria said in a statement on April 25, 2024 that its profit jumped from 172.47 billion naira (about $114.59 million) in March 2023 to 220.3 billion naira (about $146.37 million) in March 2024.

“In tandem with revenue growth, operating profit surged by 27%, reaching ₦22.21 billion fuelled by the strong revenue performance,” the company said.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Pensioners risk £11,000 hit under Labour

    Retirees stand to lose thousands under Labour’s plans to force pension funds to switch investments to Britain, analysis shows.

  • Australia’s inflation rises to 4%, stoking concern interest rates could increase again

    The consumer price index increased to its highest level in 2024, indicating the Reserve Bank is unlikely to cut interest rates soon

  • Millions of people on these benefits could get energy bill help before new price cap - full list

    Millions of people claiming benefits could get some financial relief for their energy bills and debts - here's all the benefits that count

  • At 17%, this dividend stock has the highest yield on the FTSE 250

    Grabbing high-yield stocks on the FTSE 250 is a great way to earn extra returns. But is the highest yield always the best choice? The post At 17%, this dividend stock has the highest yield on the FTSE 250 appeared first on The Motley Fool UK.

  • Who owns France's debt and why it matters

    President Emmanuel Macron's shock snap election has rocked France's bond market, the largest in the euro zone, as a strong showing for the far right and left wing parties in opinion polls exacerbates concerns about fiscal sustainability. Earlier in June, the risk premium France pays for its debt on top of Germany's neared levels last seen in 2012, during the euro zone debt crisis. The question is how much more turmoil the two-round elections on June 30 and July 7 could sow in bond markets.

  • 1 dividend star I’d buy over Lloyds shares without hesitation

    This high-yielding FTSE 100 star is more undervalued than Lloyds shares, has better growth forecasts, and can make much higher passive income. The post 1 dividend star I’d buy over Lloyds shares without hesitation appeared first on The Motley Fool UK.

  • Emmanuel Macron has done more damage than Liz Truss ever did

    The director of the Bruegel think tank in Brussels once asked what would happen if a eurozone state ever attempted a variant of Trussonomics, without the protection of its own sovereign central bank and policy instruments. We may find out as soon as the first round of voting in the French elections this Sunday.

  • Nvidia share price plunge has one major explanation

    Just one week ago, Nvidia became the world's most valuable company. The chipmaker - whose shares had risen nine-fold since the end of 2022 - overtook Microsoft as its stock market valuation reached $3.34trn (£2.63bn). Since then, the shares have fallen by 13%, declining in each of the last three trading sessions.

  • Three big banks slash mortgage rates ahead of election

    Three of the UK’s biggest lenders have cut their fixed mortgage rates in the past week in anticipation of interest rate cuts after the election.

  • Stock market today: Nvidia rebound fuels Nasdaq rally as Dow falls 300 points

    Stocks are hoping to add a punchline to what's been a high-flying quarter thus far.

  • How long would it take to earn £1,000 a month passive income from the FTSE 100?

    Here's how investing in the FTSE 100 might be the best chance many of us have to earn a decent income for our retirement days. The post How long would it take to earn £1,000 a month passive income from the FTSE 100? appeared first on The Motley Fool UK.

  • Bitcoin Posts Biggest Drop in Two Months as Liquidations Pick Up

    (Bloomberg) -- Losses are piling up in the crypto market after its second-worst weekly decline of 2024, a reflection of cooling demand for Bitcoin exchange-traded funds and uncertainty over monetary policy.Most Read from BloombergNvidia’s 13% Stock Rout Has Traders Scouring Charts for SupportBuzzFeed Struggles to Sell Owner of Hit YouTube Show ‘Hot Ones’Jain Global Raises $5.3 Billion, Secures Cash From Abu DhabiHow Long Can High Rates Last? Bond Markets Say Maybe ForeverWikileaks’ Julian Assang

  • BAE Systems vs Rolls-Royce: which are the best shares to buy today?

    Edward Sheldon compares shares in BAE Systems with those in Rolls-Royce. Which are cheaper? And which offer the better dividend yield? The post BAE Systems vs Rolls-Royce: which are the best shares to buy today? appeared first on The Motley Fool UK.

  • Bitcoin on track for third worst week of 2024. Here's why.

    Bitcoin (BTC-USD) is headed for its third worst week of the year as the crypto market is under pressure. Marathon Digital Holdings (MARA) CEO Fred Thiel joins Catalysts to discuss bitcoin's movement and how Marathon Digital Holdings handles the cryptocurrency's volatility. Thiel points to several issues facing bitcoin that are causing an increased supply in the market. First, Germany's criminal bureau is selling about 50,000 BTC. Japanese bitcoin exchange Mt. Gox is set to distribute a large volume of bitcoin in July as part of its bankruptcy. In addition, miners are selling large amounts of bitcoin to continue to fund and expand their operations. Thiel states that "bitcoin is historically very volatile," adding that Marathon Digital Holdings has a "very strong balance sheet" to deal with the cryptocurrency's swings. He explains that Marathon is focused on diversifying the business, starting a technology division to focus on areas getting a boost from bitcoin mining and the AI race, such as liquid cooling. He adds that the business is also focused on energy harvesting, leveraging bitcoin mining to generate new revenue streams. Thiel points to Marathon's recent initiative in Finland to heat 11,000 homes with the heat from its data center. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl

  • How long might it take the National Grid dividend to double?

    Our writer likes the National Grid dividend yield of 6.4%. But can the payout per share double in the next 17 years as it has in the past 17? The post How long might it take the National Grid dividend to double? appeared first on The Motley Fool UK.

  • The Glencore dividend forecast for 2024 and 2025 may disappoint income investors

    The Glencore dividend forecast suggests that investors shouldn't expect much passive income from the stock in the next few years. The post The Glencore dividend forecast for 2024 and 2025 may disappoint income investors appeared first on The Motley Fool UK.

  • A FTSE 100 stock that could create generational wealth

    Since 2004, this FTSE share has delivered better returns than any other current UK blue-chip stock. Royston Wild thinks it's worth a close look. The post A FTSE 100 stock that could create generational wealth appeared first on The Motley Fool UK.

  • What's Going On With Broadcom Stock On Tuesday?

    Broadcom Inc (NASDAQ:AVGO) recently announced significant updates to its VMware Cloud Foundation (VCF), aiming to enhance digital innovation with faster infrastructure modernization, improved developer productivity, and better cybersecurity at a low total cost of ownership. The latest advancements in VCF support customers’ needs by integrating enterprise-class computing, networking, storage, management, and security across various environments. The new VCF Import functionality allows seamless in

  • Alliance Trust and Witan Investment Trust agree to merge in sector’s largest deal to date

    Two massive investment trusts have agreed to the largest merger from the sector ever, as Witan investment trust is set to be rolled into Alliance trust.

  • Hargreaves Lansdown takeover bid not fair to all investors, chairman warned

    A shareholder in Hargreaves Lansdown has expressed its “dismay” at a £5.4bn private equity takeover bid for the fund supermarket in an open letter to chairman Alison Platt.