As one of Nigeria’s oldest and most significant players in the food and agro-allied sectors, Flour Mills of Nigeria PLC (FMN) is making bold moves to secure its future as a regional and industrial powerhouse.
FMN recently announced a share acquisition plan aimed at transitioning the firm’s structure to better align with its long-term growth strategy. In what FMN leadership is describing as a critical step toward becoming a $5 billion Pan-African food leader, the company is betting big on its ability to unlock value, grow its presence across Africa, and continue contributing to Nigeria’s economic prosperity.
The company has been a staple of Nigeria’s economy for 64 years, growing from a single flour mill into a diverse group spanning food production, agriculture, logistics, and more. However, the conglomerate structure—while effective in past decades—is now seen as limiting the company’s ability to fully capitalize on the opportunities presented by Africa’s growing markets.
“FMN is restructuring to unlock substantial value and enhance its competitiveness across Africa,” a senior executive explained. The restructuring 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 this restructuring is not coincidental. Nigeria, Africa’s largest economy, is undergoing significant reforms under its current administration. These reforms, aimed at diversifying the economy, are creating opportunities for companies like FMN to play a more prominent role in the nation’s food security and economic development.
“We are betting big on Nigeria’s growth,” said John Coumantaros, FMN’s Chairman. “The ongoing reforms, abundant natural resources, and resilience of the food and agro-allied sectors position us well to take advantage of the growing demand for locally sourced products.”
This restructuring positions FMN to not only expand its footprint across Nigeria but also capitalize on broader regional growth opportunities, starting with West Africa. By leveraging its long-standing expertise in food production and supply chain management, FMN aims to become a key player in addressing the region’s food security challenges. Despite the promising outlook, its share acquisition plan has faced some scrutiny.
Concerns have been raised in the media about changes in ownership control, but FMN has been clear in emphasizing that this 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.
The management of Flour Mills of Nigeria has reassured stakeholders that the move will reinforce, not alter, its commitment to contributing to Nigeria’s economy and supporting local industry.
Group Managing Director Boye Olusanya said, “Our vision is clear: we remain a Nigerian company focused on leveraging our heritage and expertise to build a Pan-African business that benefits not just Nigeria, but the entire continent. This restructuring strengthens our ability to act with greater agility, attract the right investments, and unlock new opportunities, both for our stakeholders and for the people of Africa.”
Minority shareholders, meanwhile, are being offered a 56.3% premium on their shares, giving them the opportunity to unlock significant value. This generous offer reflects the company’s commitment to fair and transparent corporate governance.
With the restructuring process well underway, FMN’s next challenge will be executing its Pan-African growth plans. The company has already laid the groundwork by investing in local supply chains, creating jobs, and partnering with local farmers to improve agricultural output.
These efforts not only contribute to Nigeria’s food security but also strengthen the company’s ability to scale its operations across Africa. “In the coming years, you can expect to see FMN not just as Nigeria’s largest food company but as a leader across Africa,” Mr Olusanya also commented. “We are looking at new markets, innovative solutions, and strategic partnerships that will enable us to feed and enrich the lives of millions across the continent.”
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 toward regional growth and global competitiveness. The restructuring is a critical step in ensuring that FMN remains a key contributor to Nigeria’s economic development while also positioning itself as a leader in Africa’s food security landscape.
Flour Mills of Nigeria bets big on pan-African expansion with strategic restructuring
