Diageo, the parent company of Guinness, has announced its exit from the Nigerian market after operating in the country for 60 years

The company has agreed to sell its 58.02% majority stake in Guinness Nigeria to the Singaporean conglomerate, Tolaram Group.

The decision comes as Guinness Nigeria reported a staggering loss of N61.9 billion after tax between July 2023 and March 2024, attributed to the challenging economic climate in Nigeria.

This loss is a significant decline from the N5.9 billion profit recorded in the same period last year, representing a 1,000% decrease.

The sale is expected to be completed in fiscal 2025, subject to obtaining the necessary regulatory approvals in Nigeria.

As part of the agreement, Tolaram will acquire the majority stake in Guinness Nigeria and enter into long-term licensing agreements for the continued production of Guinness and other Diageo brands in Nigeria.

Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.

This move allows Diageo to maintain its brand presence in Nigeria while exiting the market.

Guinness Nigeria, a public limited liability company quoted on the Nigerian Stock Exchange, was incorporated on April 29, 1950, as a trading company importing Guinness Stout from Dublin.

The Guinness brand has operated in Nigeria since 1950, and with Tolaram’s controlling stake acquisition, the global brewery brand will have spent 75 years in Nigeria.

Diageo’s exit from Nigeria adds to the list of multinational companies that have left the country in recent years, citing the harsh economic climate as making business unprofitable. Other companies that have exited Nigeria include GlaxoSmithKline and Microsoft.