Flour Mills of Nigeria (FMN), the country’s largest miller, has announced an ambitious $1 billion expansion plan set to unfold over the next four years. This move comes as the company prepares for a significant restructuring that will position it for future growth and enable it to leverage Nigeria’s expanding economic landscape, according to media reports.
The restructuring is expected to follow after Excelsior Shipping Company, which recently offered to acquire FMN’s minority shareholders, takes the company private. Once this process is completed, the group will reorganize its 22 operating units into five distinct companies. This consolidation aims to create a more efficient structure and attract strategic technical and financial partners to support the company’s expansion efforts across various sectors, including sugar and food production.
John Coumantaros, Chairman of Flour Mills of Nigeria, explained that the reorganization is central to the company’s long-term growth strategy. “We want to be able to attract partners—technical and financial partners—to help us grow our sugar operations and our food business. We have a lot of ambitious plans for investment and expansion,” he told the media. The primary focus of the company’s investment plan is to double down on its operations in Nigeria while seeking external expertise in specific areas where necessary.
The company plans to finance the majority of its expansion from internal sources, underscoring its strong financial position and commitment to reinvesting in Nigeria. However, in areas requiring specialized knowledge or technology, Flour Mills will seek external collaboration to ensure its growth ambitions are met efficiently.
A key part of FMN’s strategy is to take advantage of the African Continental Free Trade Area (AfCFTA), which promotes intra-African trade and aims to drive socio-economic development across the continent. Coumantaros emphasized that FMN envisions becoming a pan-African food business headquartered in Nigeria, with expansion across West Africa as a top priority. “Our dream is to have a pan-African food business that is headquartered in Nigeria. We’ll take advantage of the AfCFTA so that we can expand our footprint into those regions,” he stated.
The company’s plans reflect a broader shift towards regional integration, as businesses seek to tap into new markets within Africa. By leveraging the AfCFTA, Flour Mills aims to boost its competitiveness in the food and agricultural sectors while contributing to economic development across the continent.
Additionally, Flour Mills is also eyeing a potential relisting on the Nigerian Stock Exchange (NSE) following the completion of its restructuring and repositioning. The company’s leadership believes that returning to the stock market could further enhance its access to capital and support long-term growth.
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