Coca-Cola Value Chain Delivers $1bn Economic Impact, Supports 160,000 Jobs
Raheem Akingbolu For more than seven decades, Coca-Cola has been part of Nigeria’s commercial and social landscape, refreshing millions of consumers while building an extensive economic ecosystem that connects manufacturers,
For over 70 years, Coca-Cola has been an integral part of Nigeria's commercial and social fabric, quenching the thirst of millions while fostering an extensive economic ecosystem. A new Socio-Economic Impact Assessment (SEIA) conducted by global consultancy Steward Redqueen shows just how significant this impact is. In 2024 alone, the Coca-Cola System in Nigeria generated around $1 billion in value-added economic activity and supported more than 160,200 jobs across the country.
This wide-reaching economic influence extends beyond the production and sale of beverages, touching various sectors through its complex value chain.
The SEIA employed the input-output economic model, pioneered by Nobel laureate Wassily Leontief, to assess the broader economic activity generated by The Coca-Cola Company and its authorised bottler, Nigerian Bottling Company (NBC). This method goes beyond direct company contributions to capture the wider economic impact across interconnected sectors.
The study found that while approximately 2,989 jobs were directly created within the Coca-Cola System, about 157,200 were indirectly supported in areas like agriculture, manufacturing, transportation, distribution, retail, and services. This indicates that for every direct job, around 53 additional jobs were created elsewhere, demonstrating the multiplier effect of the System's operations.
Local procurement plays a crucial role in this impact. In 2024, the Coca-Cola System spent about $601 million on goods and services from Nigerian suppliers, which sustains a network of local businesses including agricultural producers, packaging manufacturers, industrial suppliers, and service providers. This reliance on locally sourced ingredients and packaging strengthens these economic ties.
Moreover, the System's commitment to sustainability initiatives reflects its broader economic and social responsibility. For instance, the inauguration of a Packaging Collection Hub in Apapa, Lagos, capable of processing 13,000 metric tonnes of PET bottles annually, is expected to support 1,000 informal waste collectors, enhancing Nigeria's recycling ecosystem and creating livelihood opportunities.
Additionally, the Company's Africa Water Stewardship Initiative, which includes a $25 million investment across 20 African countries by 2030, aims to improve water access and strengthen community resilience, particularly through its support in Nigeria and Lagos. The Coca-Cola Foundation also pledged $1.25 million to enhance water access and infrastructure in Lagos and Abuja, reflecting ongoing efforts to improve critical services and promote sustainable water use.
With plans to invest an additional $1 billion in Nigeria over the next five years, the Coca-Cola System underscores its confidence in Nigeria's economic potential and the vast opportunities presented by its sizable consumer market and extensive business ecosystem. The SEIA paints a vivid picture of the Coca-Cola System's economic footprint in Nigeria, emphasizing its role not just as a beverage provider, but as a catalyst for broader economic development, job creation, and sustainable community growth.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
