At a time when economic pressure continues to weigh heavily on businesses across Nigeria, industry leaders in the fast-moving consumer goods sector have come together to share practical insights on navigating the challenging environment.
The virtual session, which the industry intellectual Stacy Ketiku, Programmes Manager at B4B Partners, moderated, carried the title: “Winning in FMCG Markets.”
It was centered on delivering commercial success in tough times, and two leading voices in the FMCG space, Dr. Abiodun Ajiborode, Founder and Chief Executive Officer of the Brand Management Academy, and Alex Goma, a Managing Consultant at BusinessMax Consulting, delivered critical perspectives on how brands can adapt and remain profitable.
Together, the insights from both speakers formed a comprehensive playbook for navigating the economic realities faced by Nigeria’s FMCG sector.
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Both speakers underscored the need for agility, financial discipline, and relentless focus on consumer needs. They concluded that while the economic environment remains difficult, companies that remain proactive and flexible can still find opportunities for growth and profitability.
Dr. Abiodun began the session by framing the conversation within the context of Nigeria’s current macroeconomic landscape.
He highlighted the recurring volatility in the foreign exchange market, noting that although the naira has shown some relative stability, hovering between 1,500 and 1,600 to the US dollar over the past few months. He noted that this development does not reflect a fully stabilized economy.
According to him, the seeming steadiness largely results from policy moves by the Central Bank and fiscal adjustments by the government aimed at FX unification and increased liquidity injection.
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Nevertheless, he warned that deeper structural issues remain unresolved. He emphasized that the pressure on FX still exists and continues to exert negative ripple effects on import-dependent industries like FMCG, where planning closely ties to exchange rate projections.
In addition to FX challenges, Dr. Abiodun pointed to the Central Bank’s Monetary Policy Rate, which policymakers have maintained at a high 27.5 percent since November.
This elevated benchmark rate has significantly affected credit access, particularly for traders and distributors, many of whom depend on flexible financing to restock inventory and support their operations.
The explained that as interest rates soar, working capital becomes scarcer, leading manufacturers to extend credit to distributors.
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The business leader noted that this dynamic creates new financial burdens for producers, who already grapple with increased operating costs across energy, logistics, and telecommunications.
He drew attention to a recent 50 percent tariff hike in telecom costs, which affects data-driven business processes such as sales force automation, inventory tracking, and customer relationship management systems that rely heavily on connectivity.
Electricity costs also came under scrutiny during his session, as he cited examples of steep increases that have added to manufacturers’ burdens.
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In his view, all of these developments together have created an environment where cost-to-serve is increasing but price transmission to the consumer remains constrained by weak demand.
explained that consumers, while still aspirational in their preferences, have become increasingly price-sensitive, opting for value-driven choices over brand loyalty.
Consequently, the elasticity of demand has changed, and brands that once led the premium segment now face increasing resistance from a shrinking consumer wallet.
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To mitigate these realities, Dr. Abiodun outlined a variety of strategic responses that forward-thinking FMCG companies currently deploy.
“These include monthly price migrations to keep pace with changing cost structures, securing long-term contracts with raw material suppliers to hedge against FX shocks, and rerouting shipping to avoid high-risk and high-cost transit zones.”
These measures, he explained, reflect a growing need for greater pricing agility and more integrated supply chain risk management.
The entreprenuer also noted that companies now streamline their operational models by reducing SKU complexity and moving towards leaner production structures.
He cited examples where businesses invest in multi-use manufacturing lines that support quick switching between product types, thus avoiding long downtimes and reducing maintenance-related costs.
He further observed that digital transformation is accelerating across the FMCG value chain. Brands now expand their online commerce capabilities, driven by the shift in consumer behavior toward convenience and mobile shopping.
From an innovation standpoint, he mentioned that customization and personalization are gaining traction, especially in niche markets such as perfumes and luxury FMCG products.
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On the retail and distribution side, Dr. Abiodun remarked that inventory turnover has slowed significantly, especially in the informal trade sector.
“Retailers now adopt a more cautious approach to restocking due to capital constraints and slower product movement. The cost of replenishing stock has risen, driven by FX fluctuations and inflation, which have pushed up the landed cost of goods. This has led traders to adopt more selective stocking behavior, prioritizing fast-moving items that guarantee quick cash flow.”
He also raised concerns about the declining access to structured financing among small traders, which has led them to rely more on cooperative groups, micro-lenders, and informal finance sources.
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This, he described as a fragmentation of the retail finance ecosystem, which may pose long-term risks to supply chain stability.
Following Dr. Abiodun’s analytical overview, Alex Goma delivered a powerful and pragmatic session focused on what it takes to drive commercial performance despite adversity.
Drawing from over two decades of hands-on leadership across multinationals in Nigeria and other African markets, he advised participants to return to the fundamentals of disciplined execution.
He stressed that economic downturns should not be viewed solely as threats but also as opportunities for brands to redefine their value, reinforce relevance, and deepen market penetration in specific segments.
The industry thought leader cautioned against spreading resources too thin and advocated for intense focus on areas where businesses remain best positioned to win, whether by geography, channel, consumer type, or product category.
According to Alex Goma, clarity of purpose serves as the most important asset a leadership team can possess in uncertain times.
The emphasized the need for organizations to be ruthless in prioritizing their most productive revenue sources and realigning commercial efforts toward activities that yield the greatest impact.
The Commercial Strategy & Execution personality spoke about the temptation to fall into price wars during periods of shrinking demand, and instead urged FMCG firms to focus on improving value propositions.
As a spointed out that consumers have not entirely disappeared; rather, they now make more calculated choices. Brands that can offer flexible pack sizes, creative bundling, and added utility without compromising quality will more likely sustain volume and loyalty.
Goma also addressed the long-debated relationship between sales and marketing. He asserted that success in FMCG depends on the alignment of both functions.
He explained that marketing must provide actionable consumer insights and brand positioning, while sales must ensure execution at the point of purchase. Without this integration, even the most sophisticated campaigns will fail to convert into real market share.
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The stressed that data now serves as the lifeblood of FMCG operations.
“Companies that can access, analyze, and act on real-time data will outperform those that rely on outdated intuition or slow feedback loops. This applies to everything from demand forecasting to pricing adjustments and trade promotions.”
The final part of his presentation focused on talent. Goma remarked that commercial success depends heavily on the quality and morale of the sales team.
Being an expert in noted that teams facing constant pressure and uncertain targets often burn out quickly, which affects execution.
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The business enthusiast advocated for regular coaching, clear goal-setting, and transparent communication as key ingredients for sustaining team performance.
He challenged business leaders to invest more in their people, as empowered and motivated employees often find creative ways to overcome market obstacles.
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