Nigerian Breweries, a leading beer manufacturer, announced its decision to close two out of its nine manufacturing plants in Nigeria due to the challenging economic conditions in the country. In a communication to the Nigerian Exchange Limited on Thursday, the company cited operational concerns stemming from a significant foreign exchange loss of N153.3 billion last year.
This marks the highest foreign exchange loss in the 77-year history of the Nigerian subsidiary of Heineken Brouwerijen B.V. The company emphasised the necessity of this decision despite its impact on workers at the affected plants. However, it assured that it is committed to mitigating the effects by providing severance packages to the affected employees.
The managing director of the company, Hans Esaadi, acknowledged the impact that the closure of their two plants will have on their employees. He stated that the company is committed to minimising the impact on people and providing support to all those affected.
According to reports, this decision will enable the company to maintain a 15% capacity expansion achieved over the last decade while also lowering production costs.