Key questions this article answers:

  1. FMCG companies have been facing multiple headwinds in Nigeria. Will this change as a new government comes into power on May 29? 

  2. 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 ($439 billion: 2022).

But a new government will take power in twelve days. Will their light of “renewed hope” shine on the FMCG sector, restoring these companies to growth and profit?

Today’s article answers this question on the assumption that the incoming government will be a world apart from the Buhari administration. We do this because it is the only way the FMCG industry can overcome its current hurdles in Nigeria.

We will start by explaining the likely fiscal and monetary policy moves that will power this assumption and close off with the outlook for the FMCG sector.