FoodCo makes case for consumer goods sector

TRACKING____Amid growing concerns about falling oil prices and the coronavirus epidemic slowing global stock markets, stakeholders in the Nigerian retail sector have been charged to reposition the sector to offer a buffer against looming economic uncertainties.

Ade Sun-Basorun, Chief Executive Officer, FoodCo Nigeria Limited, made the call while reacting to recent media reports of a slump in growth projections for the country, currently ranked as Africa’s largest economy.

He said: “The present precarious economic climate emphasises the need for all stakeholders to collaborate in actualising government’s efforts at diversifying the economy. For instance, the retail market segment is currently the third highest contributor to GDP at 16.1 per cent and the Nigerian Stock Exchange (NSE) estimates that it will grow by 20.4 per cent to hit N454b by 2025. The current challenges notwithstanding, it is clear that the sector is critical to driving new growth frontiers for the country particularly if more formalised structures are put in place to optimally harness opportunities within the ecosystem.

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“In its current state, the organised consumer goods sector presents a paradoxical situation. While some Fast-Moving Consumer Goods (FMCG) companies have delivered poor results within the past few years, there have also been notable expansions by some key players, especially within the formal retail space,” he added.