Nigerian Breweries Plc has acquired 29% stake in a recycled Polyethene Terephthalate production facility in Ogun State.
The brewers formally notified the Nigerian Exchange of its entry into a strategic partnership to establish a food-grade recycling venture, in a major move to bolster its sustainability credentials and navigate a tightening regulatory environment.
The project, which marks a significant investment in Nigeria’s circular economy, sees the brewing giant taking a 29% minority stake in the venture.
The facility will be developed and operated by global sustainable chemical leader Indorama Ventures Public Company Limited, acting as the majority partner, and the Genesis Energy Group.
The announcement follows the Federal Government’s recent shift from voluntary to mandatory waste management policies.
Speaking on the strategic necessity of the deal, Nigerian Breweries highlighted the long-term operational benefits: “The partnership secures a reliable future supply of rPET for NB operations, in line with the roadmap for mandatory usage under national policy.”
By securing a 29 per cent stake, NB ensures it has priority access to high-quality recycled plastic, which is essential for meeting the National Policy on Plastic Waste Management. This policy now holds brand owners legally accountable for the entire lifecycle of their packaging.
The facility will be managed through a special purpose vehicle, Indorama Ventures Recycling Solutions Limited. While NB is a significant investor, the company clarified its role within the corporate structure:
“Nigerian Breweries will remain a minority investor in the partnership and will not participate in the control or management of the business,” according to a statement.
The venture is expected to strengthen the local recycling value chain by converting post-consumer PET bottles into food-grade resin safe for beverage packaging. The company noted that the project is a cornerstone of its broader environmental strategy: “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 timing of the partnership coincides with a period of strong financial recovery for the brewer. After a challenging 2024, the company’s FY2025 results revealed a rebound to a N161bn pre-tax profit, supported by a 35.32% surge in sales to N1.4tn.
Although NB shares saw a marginal midday dip of 1.39% following the announcement, market analysts point to the company’s year-to-date growth of over three per cent as a sign of investor confidence in its “Beyond Beer” and sustainability-led expansion plans.
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