Guinness to Exit Nigerian Market After 74 Years, Sells Majority Stake to Tolaram Group

By Abass Ganiyu

In a significant move, Guinness Nigeria has announced its exit from the Nigerian market, selling its controlling shares to Singaporean conglomerate Tolaram Group. The decision comes after the company endured severe financial losses amid the challenging economic environment under President Bola Tinubu’s administration.

Guinness, which has operated in Nigeria since 1950, recorded a staggering N61.9 billion loss after tax between July 2023 and March 2024. This loss was a sharp decline from the N5.9 billion profit generated in the same period last year. The financial setback followed President Tinubu's decision to float the naira, aiming to unify the currency's value on the official and parallel markets. However, the move led to significant devaluation of the naira, adversely impacting many multinational companies, including Guinness Nigeria.

Diageo, the parent company of Guinness, decided to sell its 58.02% majority stake to Tolaram Group, a deal announced on June 11, 2024. Under the agreement, Tolaram will acquire Diageo's shareholding along with royalty agreements for the continued production of Guinness and Diageo's ready-to-drink and mainstream spirits brands in Nigeria.

“Under the terms of an agreement signed today, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria. This transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” stated Abidemi Ademola, Guinness's legal director.

The acquisition marks the end of an era for Guinness, which will have spent 75 years in Nigeria by the time the deal concludes. Despite this, Diageo will retain ownership of the Guinness brand globally, licensing it to Guinness Nigeria for the long term.
This exit adds Guinness to a growing list of multinational companies, including GlaxoSmithKline and Microsoft, that have left Nigeria in the past two years, citing an increasingly hostile economic climate.

As Nigeria faces these economic challenges, the departure of such significant players underscores the pressing need for economic reforms to create a more favorable business environment.

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