In Nigeria, the FMCG sector represents one of the largest sectors – spanning across the entire manufacturing value chain, encompassing production, wholesale, distribution, and retail enterprises with which consumers engage on a daily basis. Despite being impacted by land border closures, a slower economic recovery – rising inflation, trade and FX restrictions – tight consumer spending, widening income inequality, and the COVID-19 pandemic, which has caused goods prices to increase by 1.5% with the losses experienced by businesses, industry players have found innovative ways to satisfy customers while maximising profits. In fact, the issue of sustainability is quickly becoming the focal point of the sector’s corporate strategy. The sector is now taking steps towards mitigating environmental damage, from supply chain innovation to distribution energy efficiency, with companies being pushed to reassess their approach to packaging, particularly if it is produced of plastic.

Key Regulations and Principles

The 10 global principles of the UNGC are included in most corporate reports as the benchmark for setting goals. Many of the enterprises in the FMCG sector are also subsidiaries of a worldwide parent corporation that sets similar goals and, on occasion, requires all subsidiaries to follow suit.

The SON (Standards Organisation of Nigeria), the CPC (Consumer Protection Council) and NAFDAC (National Agency for Food and Drug Administration and Control) are the agencies that play a major role in protecting Nigerian consumers.

NAFDAC undertakes appropriate investigations into production prFemises and raw materials for food and establishes relevant quality assurance systems including certification of the production sites. T

With the implementation of consumer protection laws, the product authentication mark and the Nigerian quality mark, the circulation of substandard/counterfeit products have reduced drastically