Nigerian Breweries, a prominent beer manufacturer, has announced the closure of two of its nine manufacturing plants in Nigeria due to challenging economic conditions in the country.
The decision, communicated to the Nigerian Exchange Limited on Thursday, was driven by operational concerns arising from a significant foreign exchange loss of N153.3 billion last year.
This foreign exchange loss is the largest in the 77-year history of the Nigerian subsidiary of Heineken Brouwerijen B.V.
The company emphasized the necessity of this action despite its impact on employees at the affected plants, assuring that it will provide severance packages to those affected.
Hans Esaadi, the managing director, acknowledged the impact on employees, stating the company’s commitment to minimizing this impact and providing support to those affected.
This strategic decision is expected to help the company maintain a 15% capacity expansion achieved over the past decade and reduce production costs, according to reports.
