Guinness Exits Nigerian Market Amid Economic Challenges, Sells Majority of Their Stake to Tolaram Group

On Tuesday, June 11, Guinness announced that it will be leaving the Nigerian market and selling its majority stake to the Singaporean company Tolaram Group.

Guinness has joined a long list of international corporations that have departed Nigeria, blaming the difficult economic environment there, including Microsoft and GlaxoSmithKline.

Only a few months after Mr. Tinubu floated the naira in an attempt to harmonise the value of the currency on the official and black market foreign exchange exchanges, the brewery company reported an astounding N61.9 billion loss after taxes between July 2023 and March 2024.

Guinness Nigeria's third-quarter N61.7 billion after-tax loss was 1,000% lower than the N5.9 billion profit made during the same period previous year, which prompted Diageo, the parent firm of Guinness, to sell the Singaporean group its 58.02 percent controlling stake.

According to a statement released by Guinness; “Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.

The announcement, which was signed by Guinness's legal director Abidemi Ademola, stated that the transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria.