Reports and social media posts falsely claim Guinness is leaving Nigeria

Published on June 13, 2024 at 15:54
3 min read
By Tonye BAKARE, AFP Nigeria

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.

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”.

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.

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