Guinness, the global beverage company, has revealed its decision to leave Nigeria due to financial losses. The company plans to sell its majority shares to the Tolaram Group from Singapore on June 11.

Guinness is among several multinational companies, including GlaxoSmithKline and Microsoft, that have exited Nigeria, blaming the tough economic conditions in the country.

Between July 2023 and March 2024, Guinness experienced a significant loss of N61.9 billion after tax. This occurred shortly after Mr. Tinubu’s decision to unify the naira’s value on both official and black market foreign exchange rates.

In the third quarter, Guinness Nigeria reported a massive N61.7 billion loss after tax, a dramatic 1,000 percent drop from the N5.9 billion profit recorded in the same period the previous year. This led Diageo, Guinness’ parent company, to sell its 58.02 percent majority stake to Tolaram Group from Singapore.

“Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company said in a statement Tuesday.

“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” said the statement signed by Abidemi Ademola, Guinness’s legal director.

Diageo “will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.”