The Nigerian Tobacco Market
British American Tobacco Nigeria (BAT) merged with the Nigerian Tobacco Company (NTC) in November 2000 to form the single largest tobacco company in Nigeria; it held a massive share of retail volume sales of cigarettes in 2005. The rest of the market is currently fragmented. Its dominance can be largely attributed to the popularity of its brands, which enjoy a long history in Nigeria, and its new factory, which has ensured a steady supply of its products to the market. Also, the company has embarked upon vigorous and creative marketing campaigns that have strengthened brand awareness and improved sales.
The Nigerian government welcomed tobacco investment and showed an active support for tobacco multinationals. BAT was granted a concessionary import duty that lasted until the end of 2003. Upon completion of the ultra-modern cigarette plant built by BAT in 2003, ex-President Olusegun Obasanjo described the US$150 million investment in Nigeria as a significant and trail-blazing initiative, which other investors should emulate. Perhaps to heed this call, in 2005, the Gallaher Group Plc and Japan Tobacco International (JTI) were registered to operate in Nigeria.
A significant portion of British American Tobacco is owned by the Swiss luxury group, Richemont, the family business empire of the South African billionaire Anton Rupert, who died in 2006.
