NIGERIA — Nigerian fast-moving consumer goods (FMCG) manufacturer Mamuda Group is set to invest US$50 million in Ogun State through a phased development strategy, beginning with the construction of a beverage facility under its subsidiary Mamuda Beverages.
The foundation stone for the new plant is scheduled to be laid in June 2025.
The group, which is headquartered in Kano and employs approximately 13,000 workers in Northern Nigeria, is expanding its operations into the country’s southwest corridor as part of a broader strategy to access markets in Lagos, Ibadan, and surrounding regions.
The initial phase of its Ogun investment will create around 1,500 jobs, with plans to scale the workforce to 3,000 upon full operationalization.
Over a period of six years, the company projects its Ogun workforce will match its current employment figures in Kano.
Multi-sectoral expansion beyond beverages
Beyond the beverage plant, additional phases of the investment will focus on developing facilities for Mamuda’s other subsidiaries, including Mamuda Foods (confectionery), Mamuda Agro & Allied Products (agro-processing and agricultural sacks), and Mamuda Care (detergents and beauty care).
According to Group Chairman Hassan Hammoud, the strategic investment approach reflects the company’s intent to build a diversified manufacturing base in the southwest.
Mamuda Group currently operates a wide range of businesses, including Mamuda Industries, which exports leather products primarily to Europe, and Mamuda Agro, which supplies packaging materials for agricultural use.
The company recently expanded its beverage operations by commissioning a new bottling plant for its Pop Cola brand in Kano in December 2024.
Incentives and infrastructure drive location choice
During a meeting with Ogun State Governor Prince Dapo Abiodun, Hammoud stated that improved infrastructure and fiscal incentives were instrumental in the group’s decision to expand into the state.
Developments cited include a newly constructed airport, a planned dry port, and a rail line linking the industrial zone to Nigeria’s major seaports, intended to streamline the importation of raw materials.
Governor Abiodun confirmed that the industrial zone is part of an initiative to attract manufacturers by reducing logistical burdens and operational costs.
“You no longer need to clear goods in Lagos. With the dry port and rail access, operations can be more efficient, saving businesses time and money,” he said.
Ogun State is currently the only one of six licensed industrial zones in Nigeria that is fully operational, according to the governor. The state government has also introduced a Business Environment Council to facilitate investor relations and address bottlenecks in regulatory compliance.
Legal dispute with Rite Foods reignites
Mamuda Group’s expansion plans come at a time when its beverage division is facing renewed legal scrutiny.
Rite Foods Limited has filed a new lawsuit against Mamuda Beverages, alleging a breach of a previous consent judgment related to intellectual property rights.
The plaintiff claims that Mamuda’s Pop Power Energy Drink imitates the branding and packaging of Rite’s Fearless Energy Drink, potentially misleading consumers.
Rite Foods is seeking ₦1 billion (US$627,000) in general damages and ₦60 million (US$37,607) in legal costs. The case centers on claims of trademark infringement and trade dress similarity, which Rite argues violates the terms of an earlier settlement.
In response, Mamuda Beverages maintains that the matter had already been resolved through a consent judgment delivered in case FHC/ABJ/CS/139/2025. The company contends that the Federal High Court lacks jurisdiction to revisit the issue.
Strategic shift southward
Mamuda’s move into Ogun represents its first major foray into Southern Nigeria. The company has identified the location as a competitive manufacturing hub, given its proximity to key markets and export routes, including neighboring Benin Republic.
While the legal dispute with Rite Foods remains ongoing, Mamuda continues to prioritize its physical expansion.
Industry observers note that the group’s growing presence in both northern and southern Nigeria could make it one of the few indigenous FMCG firms with national manufacturing coverage.
Background: Industrial growth in Ogun
Ogun State has increasingly positioned itself as a manufacturing and logistics hub. In recent months, the state has received certification to host the 2025 African U18/U20 Athletics Championships, launched a new industrial rail initiative, and restated commitments to business-friendly governance.
The Mamuda investment aligns with the state’s broader efforts to attract private sector projects and create employment opportunities. As part of this push, Ogun continues to offer tax incentives for investors setting up within its designated industrial corridors.
