Nigerian Shareholders Frown at Sports Sponsorship by Manufacturers

Business News

“What value does sports sponsorship adds to Shareholders?”

This issue was raised recently by shareholders at an annual general meeting of one of the publicly quoted multinational companies on the Nigerian Stock Exchange, NSE.

Recall that in the just ended Russia 2018 FIFA World Cup, some manufacturing firms the like of Nigerian Breweries Plc, The Coca Cola Company, Cadbury Nigeria Plc, among others, were official sponsors of the Nigerian Football Team, the Super Eagles, at the World Cup.

In their comments on Corporate Social Responsibility spending, the shareholders, said while they are not totally against sponsorship of sports event at the local and international level, the Board of Directors of companies should cut down on the millions of naira they spend on sponsorships.

“Such monies had better been spent on R & D, to develop new product line that can grow the companies’ market shares, profits and dividend to shareholders,” said a shareholder who doesn’t want his name in print.

“In this year’s World Cup alone, a company in the brewery sector spent N500 million to secure “Official Drinks of the Super Eagles,” said another shareholder.

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