CAPPA Urges Tinubu to Tread Cautiously on Coca-Cola’s $1bn Investment Pledge, Labels It ‘Hollow’ and Unfulfilled

The Corporate Accountability and Public Participation Africa (CAPPA) has sounded a note of caution to President Bola Ahmed Tinubu regarding Coca-Cola’s recent pledge to invest $1 billion in Nigeria over the next five years, describing it as a recycled promise that failed to materialize under the previous administration.

In a strongly worded statement released on Wednesday and signed by CAPPA’s Media and Communication Officer, Robert Egbe, the organization accused the multinational beverage giant of making empty commitments to successive Nigerian governments without delivering on them. “It is a matter of grave concern that the news is once again awash with Coca-Cola’s promise of a $1 billion investment in Nigeria. This is the second time in three years that the company has made this hollow pledge to different ruling governments, and yet it failed to deliver the first time around,” the statement read.

The warning comes barely a week after Coca-Cola executives, led by President and Chief Financial Officer John Murphy, met with President Tinubu in Abuja on September 19, 2024, where they announced plans to inject the funds into expanding operations, supply chain improvements, and training programs. According to the presidency, Coca-Cola has already invested $1.5 billion in Nigeria since 2013, creating over 3,000 jobs and supporting local communities. However, CAPPA dismissed this as an attempt to “whitewash” the company’s image, pointing out that a similar $1 billion pledge was made in 2021 during the administration of former President Muhammadu Buhari but was suspended due to what the company cited as a “challenging business environment.”

As earlier reported by NaijaChoice News, Coca-Cola’s track record in Nigeria has been marred by regulatory violations and public health concerns, including a 2017 Lagos High Court ruling that declared some of its products unfit for consumption due to high levels of sunset yellow and benzoic acid. The court found that these additives could form the carcinogen benzene when mixed with ascorbic acid (Vitamin C), a common ingredient in many foods. The judgment mandated warning labels on beverages advising against consumption with Vitamin C, but CAPPA alleged that Coca-Cola has defiantly ignored this directive to date.

“Despite the company’s failure to honour its previous commitments, the government of the day has not only embraced its latest pledge with undue fanfare but also quickly risen to defend its dubious track record of dangling promises that never materialise with evidence,” CAPPA stated. The group further highlighted a recent indictment by the Federal Competition and Consumer Protection Commission (FCCPC), which, following an investigation launched in 2019, found Coca-Cola guilty of deceptive trade practices just two months ago. This included misleading marketing that could harm consumers.

CAPPA’s Executive Director, Akinbode Oluwafemi, questioned the government’s enthusiasm for the investment in light of these issues. “The question the Nigerian government must ask itself in light of all this is what truly it stands to gain by endorsing a multinational corporation with a dark history of non-compliance, and whose products are even actively contributing to a public health crisis in the country?” Oluwafemi said. He emphasized that sugar-sweetened beverages like many of Coca-Cola’s offerings are major contributors to non-communicable diseases (NCDs) such as diabetes, obesity, and heart disease, which are already overburdening Nigeria’s healthcare system and economy.

The presidency, in defending the renewed pledge, attributed the 2021 suspension to economic instability but noted that Tinubu’s reforms have created a more predictable environment, prompting Coca-Cola to recommit. Presidential spokesperson Bayo Onanuga stated that the investment aligns with efforts to build a strong financial system and attract foreign direct investment.

CAPPA urged the Tinubu administration to prioritize public health and accountability over such pledges, warning that endorsing Coca-Cola could undermine judicial authority and consumer protection. “This contempt and disregard for public health and judicial authority should ordinarily disqualify the company from receiving any form of state endorsement, let alone at the highest level of government,” the statement concluded.