Flour Mills Seeks N200bn For Offshore Expansion In Q1 2025

Flour Mills of Nigeria Plc (FMN), one of Nigeria’s oldest and most significant players in the food and agro-allied sectors, is finalising plans to foray into the West African market and later, to other parts of the continent to secure its future as a regional and industrial powerhouse.

The company which holds its 64th Annual General Meeting (AGM) on November 14th in Lagos, is likely to inform and seek the endorsement of its teeming shareholders for the expansion programme at the convention where it will, among other businesses of the day, also ask for their approval to raise N200 billion in new money to probably, prosecute its offshore programme.

The West African market has always been attractive to Nigerian companies especially the financial institutions. IGI Insurance though ailing now, led the foray into the African markets in 2004 and was trailed by by GTCO, UBA, and recently, Access Holdings

The latest to catch the lure of the African market is FMN, which recently announced a share acquisition plan to transition the firm’s structure to better align with its long-term growth strategy.

InsideBusinessNG learnt the food and agro-allied company will begin the expansion by the first quarter of 2025 in a move described as a critical step in becoming a Pan-African food leader. Flour Mills of Nigeria is betting on its ability to unlock value, grow its presence across Africa, continue contributing to Nigeria’s economic prosperity, and inspire diversified business growth and returns.

FMN, which has just returned to profitability with nearly N7 billion profit in a quarter, has been a staple of Nigeria’s economy for 64 years, growing from a single flour milling company into a diverse Group spanning food production, agriculture, logistics, and more, is expected to leverage the opportunities presented by Africa’s growing markets.

A senior executive in the company told InsideBusinessNG that the restructuring to unlock substantial value and enhance its competitiveness across Africa will allow FMN to streamline its operations, focus on its core strengths, and pursue growth opportunities across the continent more nimbly.

The share acquisition plan, which involves purchasing minority shares, is central to this new strategy.

The timing of the restructuring comes at a time when Nigeria, Africa’s largest economy, under President Bola Tinubu, is undergoing significant reforms with huge opportunities for companies like FMN to play a more prominent role in the nation’s food security and economic development.

“We are committed to the growth of Nigeria, a mandate we have fostered for over six decades,” said John G. Coumantaros, Chairman of the FMN Board.

“Also, in line with the Group’s Pan-African Vision, this positions us to make more meaningful contributions to Nigeria’s economic growth and progressively across the continent.”

The restructuring allows FMN to expand nationwide across Nigeria, and capitalises on broader regional growth opportunities, starting with West Africa. By leveraging its long-standing interest in food production and supply chain management, FMN aims to become a key player in addressing the region’s food security challenges.

There have been concerns about changes in ownership, but FMN has clearly emphasised that the restructuring is driven by its long-term growth strategy, firmly anchored in its Nigerian roots.

The initiative is focused on enhancing operational efficiency, unlocking value, and expanding its influence across Africa. FMN has reassured stakeholders that the move will reinforce, not alter, its commitment to contributing to Nigeria’s economy and supporting local industry.

Under the share restructuring, minority shareholders are being offered a significant premium on their shares, allowing them to unlock substantial value in an offer which reflects the company’s commitment to fair, transparent corporate governance and effective stakeholder relations.

With the restructuring process underway, FMN’s next challenge will be executing its Pan-African growth plans which the groundwork has been laid by investing in local supply chains, creating jobs, and partnering with farmers to improve agricultural outputs. These efforts contribute to Nigeria’s food security and strengthen operations across Africa.

As FMN embarks on this next chapter, the message is clear: this is not a story of foreign control, but one of Nigerian leadership steering the company towards regional growth and global competitiveness. The restructuring is critical in ensuring that FMN remains a key contributor to Nigeria’s economic development while positioning itself as a leader in Africa’s food security landscape.