The deal involved the transfer of 71.69% stake of Honeywell Flour Mills, a subsidiary of Honeywell Group Limited to Flour Mills of Nigeria. This transaction will produce a bigger consumer goods firm in Nigeria with improved capabilities to drive sustainable growth in the industry and affect Nigeria’s economy positively.
Nigeria’s inflation rate has been on the rise largely due to the surge in the food index, rising as high as 17.11% in February 2021. The uptick in food inflationary pressure can be attributed to supply chain disruptions, food shortages, and over-reliance on importation. Whilst the African Continental Free Trade Area is set to redefine trade on the African continent. A more formidable giant will not just cater to the needs of the largest market on the continent, it will also give Nigeria a strong voice to facilitate trade on a continental scale.
The Central Bank of Nigeria has made several interventions in the agric sector over the years. However, this has not been reflected in the macro numbers as the sector GDP grew at a rather tepid rate in the previous year.