Get Guardian on GoogleLow local processing of agricultural commodities, food losses between harvest and retail, and gaps in payment systems are limiting value creation across Nigeria’s fast-moving consumer goods (FMCG) industry, stakeholders have said.
The challenges are affecting how much value businesses retain from agricultural production, the movement of goods to consumers and the ability of manufacturers, distributors and retailers to operate efficiently, with calls for increased local processing, improved logistics and more effective payment systems.
Speaking on the theme, “Driving the Future of Africa’s FMCG Industry Through Smart Technology Adoption, Payments, Logistics, Sustainable Packaging and Retail Excellence” at the FMCG Festival 2026 in Lagos, Group Chief Executive Officer of Cardinal Touch Group, David Olurin, said Nigeria processes less than 10 per cent of its cashew production, despite Africa accounting for more than half of global cashew production.
He said most raw cashew nuts leave Nigeria for countries such as India and Vietnam, where they are shelled, roasted, graded and packaged before reaching international markets under foreign brands.
Olurin argued that the industry’s challenge was not demand but the loss of value between farms and factories, factories and retail shelves, and retailers and consumers.
He said Cardinal Touch, established in 2020 as a commodity trading and export business, had moved into processing to retain more value locally.
He disclosed that the company was preparing to commence operations at its 20-tonne cashew processing plant in Sagamu, Ogun State, by February 2027.
He also said the company was developing a 250-tonne-per-day soybean oil processing facility, with the machinery currently being fabricated and commissioning planned for 2028. A 40-tonne cocoa processing plant is also planned within the same ecosystem.
Beyond local processing, Olurin identified logistics as another source of losses in the industry, citing Food and Agriculture Organisation figures showing that sub-Saharan Africa loses about 20 per cent of its food between harvest and retail, compared with the global average of 13 per cent.
He said transportation, storage and poor logistics affected product quality and increased costs for processors, urging businesses to monitor stockouts, spoilage, storage and the cost of serving individual outlets.
On packaging, Olurin highlighted the difficulty of balancing environmental responsibility with the affordability of products for consumers, particularly those who depend on sachet packaging to purchase goods in smaller quantities.
He said manufacturers, recyclers, retailers and government needed to work together on packaging materials and collection systems that would support recycling without making products unaffordable for low-income consumers.
He also stressed the importance of small retailers, particularly kiosk operators, saying manufacturers needed to provide the right products, pack sizes and prices while ensuring fair margins for retailers.
On payment systems, he said transactions needed to reflect instantly across payment platforms, arguing that delays of a day or two could affect businesses because prices and market conditions changed within minutes or seconds.
“Time is a factor that we must always put into consideration because prices change, scenarios change, situations change within minutes, within seconds,” he said.
He said payment platforms should operate to a common standard rather than provide different levels of payment confirmation, adding that distributors and suppliers needed to receive confirmation immediately after transactions.
Also speaking, Director of Retail and FMCG Industry at OPay, Isimeme Owobu, identified payment reconciliation and access to transaction information as major concerns for retailers.
He said retailers needed to receive and track payments and access information that would help them make informed decisions about when to restock and sell their goods.
Owobu said OPay had developed payment solutions, including a dashboard, to enable businesses to receive, track and reconcile transactions.
He also highlighted the company’s Wallet as a Service product, which enables manufacturers to create wallets for distributors, who can in turn create wallets for sub-distributors and retailers, making it easier to confirm payments and reconcile transactions.
On business financing, he said OPay’s distributor finance facility was designed specifically for the FMCG industry to help distributors purchase goods in larger quantities while manufacturers receive payment immediately.
He said the facility offered repayment periods of six months or one year, allowing distributors to increase their purchasing capacity.
Earlier, Project Director of the FMCG Festival, Flora Mbeledeogu, said the platform was established to connect manufacturers, distributors, retailers and consumers across the value chain.
She said more than 100 distributors and over 50 exhibitors were participating in the festival, providing manufacturers with opportunities to meet distributors interested in taking their products to market.
Mbeledeogu cited Cardinal Touch’s interest in partnering with OPay after Owobu presented the company’s distributor finance product, saying the development demonstrated the business connections the platform sought to facilitate.
FMCG stakeholders flag gaps in Nigeria’s value chain
