NB Plans N20bn investment in sorghum to boost Local Sourcing 2021

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Nigerian Breweries (NB) Plc had reached about 56 per cent in local sourcing of raw materials and injected up to N55 billion ($114 million) in capital investments and expansion projects to create more wealth for the economy.

 

NB PLC at its media parley in commemorate with firm’s 75th anniversary (1946) in Lagos, the company’s Corporate Affairs Director, Sade Morgan, said the company had invested up to N98 billion in the cultivation of local raw materials, in addition to sorghum and cassava value chains through commercial purchase and smallholder farming in the last five years.

 

Morgan further disclosed that the company has prioritized cultivating locally sourced materials in the last 5 years and also planned to invest N20 billion in sorghum value chain in 2021 through commercial purchase and smallholder farming which impact on import substitution and accretion for foreign reserve with N78 billion in investing.

 

“In addition, by using sorghum as a main ingredient Nigerian Breweries supports NGN8.8 billion in value added representing 0.05% of agricultural GDP and 50,000 jobs (0.12% of the agricultural labour force) throughout the sorghum value chain. Due to higher productivity this is an increase of 66% for value added and a 5% decrease in employment since 2011

She noted that despite the pandemic in 2020, the company kept to its strategy of delivering satisfaction and growth, adding that the Nigerian economy still remains an exceptional market with the right fundamentals for growth.

 

“The company is strategically focused to achieve a 100 per cent target in local sourcing of raw materials, especially in the availability of local ingredients needed for production.

 

The Corporate Affairs Director commended the brew for promoting Gender Equality at it work places- achieve gender equality and empower all women and girls

 

“We have done about 56 per cent in local material sourcing but our packaging material is at 100 per cent. The challenge with the raw material is the availability of local ingredients that goes into making most of our products.

 

“So that is an area where we will continue to pioneer as we did in backward integration for sorghum but for now, we want to be able to satisfy our consumers and give them the same quality of beer that they can get anywhere in the world.”

 

She said: “NB Plc, in its bid to build a resilient economy through sustainable capital investments, have injected about $114 million in capital investments and expansion projects scheduled for 2021/2022 in Ama (Enugu) brewery.

 

Speaking further, the newly appointed Managing Director, Hans Essaadi, stated that the company intended to invest significantly in business expansion as part of its growth strategy and objectives.

“We have grown with Nigeria and it is clear that moving forward, we will continue to invest significantly in capacity extension to meet our objectives as well as demands in the market.”

 

“We should expect much of this extension in the East and Northern part of the country and our majority shareholder, Heineken is committed to this and this is good as it will bring direct and indirect job opportunities for Nigerians”, he said.

 

Also speaking during the event is the chairman of the company, Chief Kolawole Jamodu commended the investors for keeping faith with the management and assured them with the best yet to come in term of performance. He thanks the Heineken international the core investor for the continual supports while disclosed that the 75 years company had three pillars, Namely: People (Staffers), Investors (Shareholders) and Costumers (Life wire).

 


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