Economy
Flour Mills Stakes Big on Pan-African Expansion with Strategic Restructuring
As one of Nigeria’s oldest and most significant players in the food and agro-allied sectors, Flour Mills of Nigeria PLC (FMN) is making bold moves to secure its future as a regional and industrial powerhouse.
The company recently announced a share acquisition plan aimed at transitioning the firm’s structure to better align with its long-term growth strategy.
In what FMN leadership is describing as a critical step toward becoming a Pan-African food leader, the company is betting big on its ability to unlock value, grow its presence across Africa, and continue contributing to Nigeria’s economic prosperity. And Inspire diversified business growth and returns.
FMN has been a staple of Nigeria’s economy for 64 years, growing from a single flour milling company into a diverse Group spanning food production, agriculture, logistics, and more. However, the conglomerate structure—while effective in past decades—is now seen as limiting the company’s ability to fully capitalize on the opportunities presented by Africa’s growing markets.
“FMN is restructuring to unlock substantial value and enhance its competitiveness across Africa,” explained a senior executive at the company. The restructuring will allow FMN to streamline its operations, focus on its core strengths, and pursue growth opportunities across the continent more nimbly. The share acquisition plan, which involves purchasing minority shares, is central to this new strategy.
Why Now? Nigeria’s Economy and the African Opportunity
The timing of this restructuring is not coincidental. Nigeria, Africa’s largest economy, is undergoing significant reforms under its current administration. These reforms, aimed at diversifying the economy, are creating opportunities for companies like FMN to play a more prominent role in the nation’s food security and economic development.
“We are committed to the growth of Nigeria, a mandate we have fostered for over six decades,” said Mr. John G. Coumantaros, the Chairman of the FMN Board. “Also, in line with the Group’s Pan-African Vision, this positions us to make more meaningful contributions to Nigeria’s economic growth and progressively across the continent.”
This restructuring positions FMN to not only expand its footprint across Nigeria but also capitalize on broader regional growth opportunities, starting with West Africa. By leveraging its long-standing expertise in food production and supply chain management, FMN aims to become a key player in addressing the region’s food security challenges.
There have been concerns about changes in ownership control, but FMN has been clear in emphasizing that this restructuring is driven by its long-term growth strategy, firmly anchored in its Nigerian roots.
The initiative is focused on enhancing operational efficiency, unlocking value, and expanding its influence across Africa. FMN has reassured stakeholders that the move will reinforce, not alter, its commitment to contributing to Nigeria’s economy and supporting local industry.
Minority shareholders, meanwhile, are being offered a significant premium on their shares, allowing them to unlock substantial value. The offer reflects the company’s commitment to fair, transparent corporate governance and commitment to effective stakeholder relations.
Pan-African Ambitions: What’s Next for FMN?
With the restructuring process well underway, FMN’s next challenge will be executing its Pan-African growth plans. The company has already laid the groundwork by investing in local supply chains, creating jobs, and partnering with local farmers to improve agricultural output. These efforts not only contribute to Nigeria’s food security but also strengthen the company’s ability to scale its operations across Africa.
As FMN embarks on this next chapter, the message is clear: this is not a story of foreign control, but one of Nigerian leadership steering the company toward regional growth and global competitiveness. The restructuring is a critical step in ensuring that FMN remains a key contributor to Nigeria’s economic development, while also positioning itself as a leader in Africa’s food security landscape.
By Modupe Gbadeyanka
Nigeria’s First Lady, Mrs Oluremi Tinubu, has given Nigerians business advice that may not involve a lot of money to start.
Speaking with newsmen recently, the wife of President Bola Tinubu said businesses like akara (fried bean cake), kulikuli (a crunchy snack from roasted peanuts or groundnuts) and roasted corn can be set up without breaking the bank.
She disclosed that to support her husband’s Renewed Hope agenda, she has provided funding packages to traders and others to the tune of N3.5 billion.
“To start akara business doesn’t take a lot of money. To start roasting corn and kuli-kuli doesn’t take much. We didn’t give them a loan; we gave it to them as a grant,” she stated.
She further said, “We’ve encouraged Nigerians as best as we could, what is within our hands, I have given, and I keep giving. Those are the things we’ve done.”
“I remember giving for TB (tuberculosis) when I heard of many TB cases; I gave N2 billion, to breast cancer, I gave N1 billion, and to [tackle] malnutrition, I gave N500 million.
“These are the things we’ve been doing to assist the government. So, we’ve had impact in agriculture, social investment, education (as scholarship and ICT training) and others. We are still open to doing more,” she disclosed.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rallied by 1.70 per cent on Thursday, June 25, after three price gainers overpowered the two price losers recorded at the close of business.
Consequently, the market capitalisation of the trading platform increased by N43.79 billion to N2.618 trillion from N2.574 trillion, and the NASD Security Index (NSI) improved by 72.96 points to close at 4,362.32 points, in contrast to Wednesday’s 4,289.36 points.
Yesterday, the price advancers were led by Nipco Plc, which chalked up N31.79 to close at N349.76 per unit versus the preceding day’s N317.97 per unit. Okitipupa Plc gained N18.00 to end at N298.00 per share versus the previous session’s N280.00 per share, and Central Securities Clearing System (CSCS) Plc went up by N7.11 to N86.79 per unit from N79.68 per unit.
On the flip side, Nitrox Industrial Gases Plc crumbled by 32 Kobo to close at N21.09 per share compared with the N21.41 per share it closed at midweek, and Food Concepts Plc depreciated by 25 Kobo to N2.51 per unit from N2.76 per unit.
During the session, the value of securities traded by investors went down by 86.7 per cent to N10.9 million from the preceding session’s N82.9 million, and the volume of securities dropped 84.9 per cent to 10.9 million units from the previous 82.9 million, while the number of deals grew by 84.2 per cent to 35 deals from 19 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 68.4 million units exchanged for N4.7 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited further suffered a 0.64 per cent decline on Thursday as the bears tightened their grip on the bourse.
For the second straight session, all the key sectors of Customs Street pointed south, with the energy counter down by 5.22 per cent. The insurance index slumped by 2.59 per cent, the banking space depreciated by 0.28 per cent, and the consumer goods segment moderated by 0.06 per cent, while the industrial goods sector was flat, though with a marginal fall.
As a result, the All-Share Index (ASI) contracted by 1,493.71 points to 233,580.83 points from 235,074.54 points, and the market capitalisation retreated by N959 billion to N149.888 trillion from N150.847 trillion.
Investor sentiment remained weak after a negative market breadth index, as there were 21 price gainers and 34 price losers.
Aradel and Deap Capital went down by 10.00 per cent each to N1,575.00 and N4.05, respectively. Trans-Nationwide Express fell by 9.90 per cent to N3.64, Regency Alliance slipped by 9.57 per cent to N85 Kobo, and C&I Leasing dipped by 9.48 per cent to N28.12.
Conversely, Red Star Express grew by 9.60 per cent to N24.55, Legend Internet expanded by 9.09 per cent to N6.00, Neimeth appreciated by 7.10 per cent to N8.30, Abbey Mortgage Bank rose by 5.45 per cent to N8.70, and Ellah Lakes improved by 4.65 per cent to N9.00.
Yesterday, market participants traded 393.7 million equities valued at N19.2 billion in 45,813 deals compared with the 488.1 million equities worth N20.9 billion transacted in 46,239 deals recorded a day earlier, implying a shortfall in the trading volume, value, and number of deals by 19.34 per cent, 8.13 per cent, and 0.92 per cent, respectively.
The most active stock for the session was Access Holdings with a turnover of 39.1 million units worth N896.2 million, Chams traded 24.5 million units valued at N96.5 million, Fidelity Bank sold 24.1 million units for N436.9 million, Sterling Holdings exchanged 23.8 million units valued at N182.2 million, and Zenith Bank transacted 18.9 million units worth N2.1 billion.
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