In a move to reduce it’s exposure to foreign exchange volatility, and encourage local producers, Nigerian Breweries is increasing it’s reliance on domestic sources for its input. Mr Patrick Olowokere, its Corporate Communications and Brand Public Relations Manager disclosed this recently.
Here is what we know about it’s efforts in that direction so far:
- The company had initially set 2020 to meet that target.
- 99% of its packaging materials were locally produced.
- Psaltry International Limited, a Nigerian company had been supplying it industrial starch which is used to produce maltose since 2015.
- NB had also increased local purchase of sorghum to over 100,000 metric tonnes of cereal yearly.
How does the country and Nigerians benefit from this ?
The move towards local input keys into the government’s Economic Really and Growth Plan (ERGP) which has increased agricultural production as one of its objectives. Governments at the state and federal level also benefit from enhanced tax revenue that will be paid by industries and the additional work force they will employ.
The entire agricultural value chain from farmers to processors also benefit from increased patronage. Prices of products would also be relatively stable, since inputs are local. Ultimately, NB shareholders will get bigger dividends since the company will make significant cost savings and more profit.