Nigerian Breweries acquires 29% stake in Ogun rPET facility to boost recycling and sustainability
Nigerian Breweries invests in rPET production to secure recycled packaging supply and align with Nigeria’s stricter plastic waste management regulations.
NIGERIA – Nigerian Breweries Plc (NBL) has acquired a 29% stake in a recycled polyethylene terephthalate (rPET) production facility in Ogun State, marking a strategic move to strengthen its sustainability efforts and comply with evolving regulatory requirements.
The brewer disclosed its investment in a filing to the Nigerian Exchange, confirming its participation in a food-grade recycling venture aimed at supporting Nigeria’s circular economy.
The project will be developed and operated by Indorama Ventures Public Company Limited, the majority partner, in collaboration with Genesis Energy Group.
According to the company, the partnership comes at a time when Nigeria is transitioning from voluntary to mandatory waste management policies, increasing pressure on manufacturers to adopt sustainable packaging practices.
“The partnership secures a reliable future supply of rPET for NB operations, in line with the roadmap for mandatory usage under national policy,” Nigerian Breweries Plc said in a statement.
By acquiring the minority stake, the company aims to secure priority access to high-quality recycled plastic required to meet the country’s National Policy on Plastic Waste Management, which holds producers accountable for the full lifecycle of their packaging materials.
The recycling facility will be managed through a special purpose vehicle, Indorama Ventures Recycling Solutions Limited.
Despite its investment, Nigerian Breweries Plc clarified that it will not participate in the control or management of the venture.
“Nigerian Breweries will remain a minority investor in the partnership and will not participate in the control or management of the business,” the company stated.
The facility is expected to strengthen Nigeria’s recycling value chain by converting post-consumer PET bottles into food-grade resin suitable for beverage packaging.
“The venture aligns with our sustainability goals, supports the growth of Nigeria’s local recycling industry, and remains subject to the necessary approvals and operational requirements,” the company added.
The investment coincides with a period of financial recovery for Nigerian Breweries Plc. For the 2025 financial year, the brewer reported a pre-tax profit of N161 billion, supported by a 35.32% increase in sales to N1.4 trillion.
At the same time, the company has announced price adjustments across selected stock-keeping units to address rising operational and input costs.
In a notice to distributors, Nigerian Breweries Plc said the changes were driven by prevailing economic conditions that have significantly increased the cost of doing business.
“Due to increases in operational and input costs, we will be implementing a price increase on select SKUs,” the company stated.
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