Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Danone, one of the world’s leading food and beverage companies, has announced plans to expand its footprint in Nigeria.

This defies recent exits by several multinational firms amid currency challenges and high inflation.

Based in Paris, Danone sees Nigeria, Africa's most populous nation, as a strategic growth market despite economic headwinds.

Christian Stammkoetter, Danone’s head of Asia, Middle East, and Africa, expressed confidence in Nigeria's potential during an interview at the Africa CEO Forum in Abidjan.

He said:

"“We are convinced about the potential of Nigeria."

Danone, renowned for its Fan Milk brand in Nigeria, recently bolstered its investment by enhancing milk distribution capabilities in the northern region.

This move aims to streamline operations and enhance profitability amidst challenging economic conditions, BusinessDay reports.

Stammkoetter stressed Danone’s commitment to innovation and expanding market reach in Nigeria, underscoring the company’s optimism about the country's economic recovery trajectory.

The French multinational’s expansion plans stand in sharp contrast to the recent exits of nine other multinationals, including pharmaceutical giant GSK and consumer goods companies such as Procter & Gamble and Unilever.

These departures were driven by the devaluation of the Nigerian currency and a volatile business environment following economic reforms introduced under President Bola Tinubu.

Despite scaling down operations, these companies have retained local assets, signalling continued interest in Nigeria’s market potential.

For instance, Procter & Gamble repurposed its $300 million manufacturing facility in Ogun State for import operations, reflecting a strategic shift aimed at leveraging local market opportunities.

Similarly, American technology company International Business Machines (IBM) recently announced the end of its on-ground operations in several African markets, including Nigeria.

The company stated that it would transfer its regional functions to MIBB, a subsidiary of the Midis Group.

The handover, which took place on April 1, 2025, will see MIBB assume responsibility for marketing and selling IBM’s software, hardware, cloud, and consulting services.

Another example is Sanofi-Aventis Nigeria, a leading French pharmaceutical firm, which recently decided to cease its direct operations in the country.

Starting in 2024, the company plans to adopt a third-party distribution model for its products in Nigeria.

According to an internal memo, the global pharma giant intends to implement a transformative business model in the Nigerian market.

Earlier, Legit.ng reported that a Norwegian energy corporation, Equinor, declared that it had sold its Nigerian operations, including its stake in the Agbami oil field, to Chappal Energies, a Nigerian company.

Equinor’s three-decade presence in Nigeria concludes with the sale of its local subsidiary.

The agreement involves the transfer of Equinor Nigeria Energy Company (ENEC), which holds a 53.85% interest in oil and gas lease OML 128, including a unitised 20.21% stake in the Chevron-operated Agbami oil field.

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Source: Legit.ng