Flour Mills plans $1-billion investment in Nigeria over four years

Timilehin Adejumobi -
Key Points
  • Flour Mills of Nigeria plans a $1-billion investment over four years, focusing on sugar expansion and cassava processing to boost operations and restructuring.
  • Excelsior Shipping, majority-owned by John Coumantaros, aims to buy out minority shareholders and privatize the 64-year-old company.
  • Flour Mills seeks $120 million in shareholder approval to fund expansion, leveraging AfCFTA for West African growth and pursuing a dual international listing.

Flour Mills of Nigeria Plc, a leading agro-allied group chaired by Greek multimillionaire John Coumantaros, is set to invest $1 billion over the next four years to bolster its operations and support the company’s restructuring plan. 

The announcement follows a move by its majority shareholder, Excelsior Shipping Company, to buy out minority shareholders and take the company private.

The restructuring aims to streamline the 64-year-old company’s operations while aligning with Nigerian President Bola Tinubu’s economic reforms, which are focused on boosting investor confidence through subsidy removal and naira floating.

“This is about doubling down on investment in Nigeria,” Coumantaros said, adding that the investment will focus on expanding sugar production and cassava processing.

Boosting agro-allied operations

Flour Mills plans to allocate $500 million to expand its sugar operations in Niger state, aiming to quadruple production from 100,000 to 400,000 tons annually.

An additional $100 million will fund the construction of a cassava-processing plant, focusing on import substitution for cassava starch. The company also plans to increase production of breakfast cereals as it taps into Nigeria’s growing consumer market.

The group intends to reorganize its 22 subsidiaries into five standalone units to attract financial and technical partners. “We want to grow our sugar and food businesses with the right partnerships,” Coumantaros said, adding that most of the funding will come from internal sources.

Flour Mills seeks $120 million boost

Flour Mills reported a 67.2-percent jump in revenue to N763.2 billion ($460.1 million) for Q1 of its 2025 fiscal year, up from N456.4 billion ($279.3 million) a year earlier. The stock has surged over 80% this year, reflecting strong investor confidence.

Through Excelsior Shipping, John Coumantaros holds a 63.3-percent stake in the company. Flour Mills will seek shareholder approval in October 2024 to raise $120 million for expansion. Founded by the late George Coumantaros, the company has grown into a key player in Nigeria’s agro-allied sector under John’s leadership.

Flour Mills aims to expand across Africa by leveraging the African Continental Free Trade Area (AfCFTA), starting with West Africa. The company also plans to maintain its Nigerian listing while pursuing a dual listing on an international exchange.