LAGOS, NIGERIA — Flour Mills of Nigeria Plc, the country’s biggest miller by market value, will seek expansion opportunities in Africa after streamlining its domestic business to focus on food in the continent’s biggest economy, Bloomberg Business reported on July 27.
“That will be the next phase of growth,” said Paul Gbededo chief executive officer (CEO) in an interview on July 24 in Lagos, Nigeria.
The company will target joint ventures and acquisitions in other countries, he said, declining to name them or give a time frame.
Flour Mills, which sold its stake in United Cement Co. of Nigeria Ltd. to Lafarge Africa last year to focus on food and agriculture-related activities, has invested over $1 billion in areas including feed-mill expansion, sugar refining and vegetable oil production in the last five years, Gbededo said.
The company plans to invest in sorghum mills at its Northern Nigeria Flour Mills unit with a target of 20,000 to 30,000 tonnes of the foodstuff annually in the next three to five years, he said.
Nigeria is attempting to revitalize its agriculture industry to diversify the economy away from crude oil, which accounts for about two-thirds of government revenue. The Central Bank of Nigeria last month restricted the sale of dollars to importers of some goods, including food, in an effort to conserve foreign exchange and boost local production. The opportunities that exist in food in Nigeria are present in many African countries, according to Gbededo.
“Food that we can grow here, where we have comparative advantage, we have to be investing in that and grow our capacity in feeding ourselves,” he said.
“The company plans to raise as much as 40 billion naira ($202 million) in equity this year or in early 2016 to as it seeks to reduce debt and increase working capital,” he said. “We will continue to invest in key growth areas of our portfolio.”