Published on 26 Jun 2025

Wilmar takes full control of Nigerian food manufacturing venture

Singaporean firm to pay US$70m for PZ Cussons’ stake in palm oil business

Wilmar International, the Singapore-based agribusiness group, is expanding its presence in Nigeria with a US$70m deal to buy out PZ Cussons from their joint palm oil processing venture. The transaction will give Wilmar full ownership of PZ Wilmar, a company formed in 2010 that produces cooking oils under the Mamador and Devon King’s brands, along with margarine and seasoning cubes. The business also holds minority stakes in two Nigerian palm oil plantations majority-owned by Wilmar.

The move comes as Nigeria, despite being the world’s fifth-largest palm oil producer, continues to import nearly half of the 2m tonnes it consumes annually. The oil is widely used in cooking and as an input in both food and non-food products.

PZ Cussons, listed on the London Stock Exchange, said the sale is part of an ongoing review of its operations and is intended to reduce its exposure to the risk and volatility of the Nigerian market. The company, which has operated in Nigeria for more than 120 years, manufactures and distributes a range of consumer products, including soaps, detergents and toiletries. PZ Cussons, which also has operations in the UK, Indonesia and Australia, said in September last year it was considering a partial or full exit from Nigeria to limit its exposure to fluctuations in the local currency.

In recent years, several multinational consumer goods companies have struggled in Nigeria due to a weakening currency and high inflation. In 2024, the naira fell to record lows of nearly NGN 1,700 to the US dollar, though it has since partially recovered. Inflation remained above 30% for much of last year, before easing to 23% in May 2025. Amid these conditions, American consumer goods giant Procter & Gamble shut its manufacturing operations in Nigeria to focus on importing products instead. British pharmaceutical company GlaxoSmithKline has also exited the country, citing economic challenges and a persistent foreign currency crisis. Unilever, while maintaining a presence, withdrew its OMO, Sunlight and Lux home and skincare brands from the market.

The deal makes Wilmar the latest Singaporean company to take over operations previously held by a Western multinational in Nigeria. Last year, Tolaram agreed to acquire Diageo’s majority stake in Guinness Nigeria, following the British drinks company’s decision to exit the business.

Wilmar said it remains optimistic about the long-term prospects of Nigeria’s food sector, pointing to the country’s large and growing population of over 230m and its suitability for oil palm cultivation. The company added that it intends to bring on board a suitable local partner for the business.

Nigeria scores low on BMI Trade and Investment Risk Index, highlighting a challenging but mixed investment environment. On one hand, systemic challenges—such as currency instability, weak legal enforcement, limited industrial capacity, and high operating costs—undermine ease of doing business. On the other hand, there are concrete long-term opportunities in key consumer-driven sectors. The report identifies financial services (including fintech), and essential goods as promising areas, bolstered by strong domestic demand, high mobile penetration, and targeted government incentives.

Despite structural inefficiencies and macroeconomic headwinds, Nigeria remains one of sub-Saharan Africa’s most dynamic consumer markets. Sectors like food processing, fintech, and essential consumer goods offer credible entry points—especially for investors with a long-term outlook. Policy reforms and rising demand create a base for cautious optimism. However, success will hinge on local partnerships, a clear-eyed approach to risk, resilience, and the ability to navigate ongoing foreign exchange, inflation, and policy volatility.

 


References

Procter & Gamble halts manufacturing in Nigeria amid economic headwinds’, NTU-SBF Centre for African Studies, 27 December 2023

Asian firms step up as multinationals sour on Nigeria’, Bloomberg, 18 June 2024

'PZ Cussons cites Naira depreciation in Africa exit plans', Vanguard, 19 September 2024

'FX crisis: PZ Cussons to sell Nigeria subsidiaries, others', Punch Nigeria, 20 September 2024

'Nigerian palm oil about to get expensive, Indonesia increases export levy', Nairametrics, 18 May 2025

'Wilmar International Limited to acquire PZ Cussons plc’s 50% stake in PZ Wilmar joint venture for US$70 million', Wilmar International, 18 June 2025

'Wilmar to buy over Nigeria-incorporated palm oil business from British JV partner for US$70 million', The Business Times, 18 June 2025 

'Sale of Nigerian joint venture and trading update', PZ Cussons, 18 June 2025

'Delivering quality Nigerian products at an affordable price', PZ Wilmar, Accessed on 23 June 2025

'Nigeria population', Worldometer, Accessed on 23 June 2025

'Nigeria investors', PZ Cussons, Accessed on 23 June 2025

'Inflation rate', Central Bank of Nigeria, Accessed on 23 June 2025

Nigeria Trade & Investment Risk Report., Fitch Solution, Accessed on 25 June 2025

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