Key questions this article answers:
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FMCG companies have been facing multiple headwinds in Nigeria. Will this change as a new government comes into power on May 29?
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What are the best policies to support the FMCG sector in the next four years?
Fast Moving Consumer Goods (FMCG) companies are not having it good in today’s Nigeria.
Two months ago, Unilever stopped production of its home care and skin cleansing products. Last week, Friesland Campina announced a net loss of ₦10 billion in Q1’2023, compared to a net profit of ₦3 billion in Q1’2022. Nigeria’s hydra-headed macroeconomic throes, including forex scarcity, insecurity, policy uncertainty, weak consumer demand and higher energy costs, are to blame for these events. For instance, epileptic power supply alone costs Nigerian businesses ₦10 trillion annually ($22 billion using ₦462/$)—a loss 54% higher than the federal government’s revenue in 2022 (₦6.5 trillion) and equivalent to 5% of GDP
