British American Tobacco (Nigeria) Limited is a fully owned subsidiary of the British American Tobacco Group.
British American Tobacco has had an operational presence in Nigeria since 1912. The Group held a 60% shareholding value in the Nigerian Tobacco Company (NTC) while a 40% shareholding value was held by the Nigerian Government. By 1978, there were three operating factories located at Ibadan, Port-Harcourt and Zaria.
However, the domestic industry experienced a decline when an influx of illicit trade and the deteriorating infrastructure created an uncertain business environment and investment slowed. This led to closures of the Port Harcourt and Ibadan factories and a downscaling of the Zaria operations.
The election of the 1999 civilian administration brought a renewed focus on Foreign Direct Investment (FDI) which led to the incorporation of British American Tobacco (Nigeria) Limited.
British American Tobacco (Nigeria) Limited was incorporated on July 11, 2000 and subsequently merged with the Nigerian Tobacco Company on November 6 of the same year. The company is a fully owned subsidiary of the British American Tobacco Group.
On September 24, 2001 the Group signed a Memorandum of Understanding (MoU) with the Federal Government of Nigeria for an investment of $150 million to build a state-of-the-art-factory in Ibadan, Oyo State. The investment started a process that has impacted all aspects of the tobacco industry, from leaf growing, through to the manufacture and distribution of tobacco products.