PepsiCo Nigeria is strengthening its backwards integration efforts by relying heavily on local farmers to sustain its operations.
General Manager, PepsiCo Nigeria, Felix Enwemadu, explained that the step would strengthen the economy through the agricultural value chain, create jobs and preserve FX.
He hinted that key supplies come from its partnerships with Flour Mills of Nigeria and Presco Plc.
Speaking at PepsiCo’s launch of its expanded snacks manufacturing facility in Lagos in partnership with DP World, he said that the company believed in the Nigerian market and has invested $20million across its different food brands to develop the sector and expand partnerships with local suppliers such as Northern Nigeria Flour Mills, Grand Cereals Nigeria Limited and BabbanGona Nigeria Limited.
Minister of Finance, Wale Edun, noted that because roughly 90 per cent of the raw materials used in the production of the goods are locally sourced, it will benefit from export purposes under the ‘Rules of Origin’.
Since 2022, the company’s foundation has partnered with WaterAid Nigeria to expand access to clean water, improved sanitation and hygiene services in underserved communities. Its Safe Water Access program has reached over 54,000 directly and educated over 800,000 through hygiene education campaigns.
Enwemadu added that by producing locally and investing in community programmes like its Safe Water Access initiative, the company is creating jobs, empowering farmers and helping communities thrive.
Chief Executive Officer (CEO), Sub–Saharan Africa Region for DP World, Mohammed Akoojee, hailed the partnership, describing Nigeria as a key market for DP World. He added that the collaborative efforts from DP World, PepsiCo and WaterAid demonstrate what is possible when commercial capability is aligned with social purpose. By investing in climate-resilient water systems, empowering local women through enterprise and reaching individuals with hygiene awareness, he said impact that extends beyond the supply chain is being delivered.
Government officials and stakeholders were taken on a factory tour showcasing state-of-the-art production lines, followed by a partnership session with key stakeholders with a promise to continue to drive growth through local production, jobs and community impact.