Nigeria’s economy is projected to grow by 5% this year, according to Coordinating Minister of the Economy and Minister of Finance, Wale Edun.
However, one of the biggest obstacles to sustaining this growth lies in the cost of logistics, in some cases consuming up to 75% of a product’s value, far higher than the global average of 6–8%.
Against this backdrop, PepsiCo and DP World have expanded a $20 million partnership to bolster PepsiCo’s food business in Lagos, launching the iconic billion-dollar snack brand Cheetos into the Nigerian market.
The investment, beyond just snacks, is being pitched as an initiative to strengthen local manufacturing, create jobs, and address structural weaknesses in supply chains that have long slowed Africa’s largest economy.
Linking the development directly to the Tinubu administration’s reforms, Edun stated that “The inauguration of this Cheetos plant reflects the bold reforms we are driving to stabilise our economy and unlock sustainable growth. With GDP projected to grow by 5%, we are seeing real results from our pillars of reform – diversification, industrialization, and job creation.
“By sourcing locally and creating jobs, this investment brings to life President Tinubu’s vision of a stronger, more inclusive economy. Producing Cheetos not only for Nigeria but for West Africa highlights our nation’s role as a regional hub for manufacturing, supported by ongoing progress in technology and digitalisation.”
Today, August 20, 2025, PepsiCo cut the ribbon on its expanded snacks factory in Lagos State, marking the official entry of Cheetos into Nigeria. The brand, which generates more than $1 billion annually worldwide, is produced in two flavours, Cheese and Coconut, with Sour Cream set to launch next month.
PepsiCo says the arrival of Cheetos strengthens its snacks portfolio in West Africa, adding to Lay’s and Doritos already in the market. More importantly, it reiterates PepsiCo’s commitment to localisation, job creation, and resilient supply chains.
Local Sourcing at the Heart of Strategy
According to Felix Enwemadu, general manager, PepsiCo Foods Nigeria, nearly all inputs for Cheetos are sourced within Nigeria. “For Cheetos, we’re sourcing close to 100% of the raw materials from Nigeria. Corn grits come from a partnership with farmers under an outgrower scheme. Vegetable oil is supplied entirely by Presco Plc, quoted on the stock exchange.
“Flavours are also sourced locally. For sausage rolls, our wheat flour is fully supplied by Flour Mills. The only import we have is Quaker Oats, because Nigeria’s climate doesn’t allow oat cultivation.”
This fully integrated sourcing programme strengthens PepsiCo’s supply chain while empowering thousands of local farmers.
Enwemadu stressed that compliance and quality remain top priorities: “Before we launch any product, NAFDAC and SON inspect our factories and conduct quality checks. We follow global standards, including environmental health and safety. Our relationship with regulators is second to none.”
Community Investments
PepsiCo’s investment goes beyond its factory walls, as the PepsiCo Foundation’s Safe Water Access programme with WaterAid Nigeria has reached over 54,000 people directly and educated more than 800,000 Nigerians on hygiene practices since 2022.
In Lagos, women have been trained as Local Area Mechanics to operate and maintain water systems, ensuring sustainability.
“When we put money in, we’re not just donating; we’re creating self-sustaining systems,” Enwemadu said. “We design projects so communities can maintain them. We work with local leaders to ensure accountability, and we bring in partners like DP World to scale impact.”
DP World’s Logistics Perspective
For PepsiCo’s partner, DP World, which has partnered with PepsiCo across three Nigerian facilities, says logistics inefficiency is one of the greatest threats to Nigeria’s economic competitiveness.
Mohammed Akoojee, CEO & MD sub-Saharan Africa, DP World, was frank, “It’s very inefficient. Nigeria has one of the highest logistics costs in the world. In some cases, up to 75% of the value of a product is logistics. Compare that to the global average of 6–8%. That’s holding Africa back.”
He noted how Nigeria, despite having a population size comparable to Indonesia, handles only 1.6 million containers annually, five times fewer than Indonesia.
DP World is investing in port terminals, road infrastructure, warehouses, and AI-driven technology to reduce costs, “With the amount of data we have across warehouses, trucks, ports, and thousands of points of sale, we could be the Google of Africa in terms of predictive analysis for logistics. AI will allow us to price better, move faster, and make products more affordable.”
A Longstanding Partnership
The Cheetos factory is the third PepsiCo facility developed with DP World in Nigeria. Ajit Nair, MD – FMCL Nigeria, DP World, noted that “Nigeria is PepsiCo’s most integrated market with DP World, spanning the full value chain from manufacturing to distribution. This achievement reflects the strength of our partnership, built on trust, performance, and shared purpose.”
DP World also operates PepsiCo partnerships in Mozambique, Ghana, Ivory Coast, and Senegal, with Nigeria serving as the largest footprint.
Government Endorsement
Beyond Edun’s remarks, the Lagos State Government emphasised the bigger socio-economic gains.
Commissioner Folashade Bada Ambrose, representing Governor Babajide Sanwo-Olu, said: “The socio-economic impact of this collaboration will be transformative. We will see faster, more cost-effective movement of goods, greater inclusion of Nigerian businesses in global supply chains, and more jobs for Lagosians. This means more opportunities for local entrepreneurs, more exports, and improved food security as perishable goods reach consumers faster.”
She underlined that such partnerships align with Lagos’ vision to remain Nigeria’s commercial hub, where the government creates an enabling environment while businesses drive growth.
PepsiCo’s Nigerian Footprint
Ahmed El-Sheikh, President MENAPAK, PepsiCo, placed the project in context, “Since 1992, we have been proud to be part of Nigeria’s growth, building talent, investing in local capabilities, and working alongside communities. Our food operations employ over 1,000 Nigerians, anchored by two world-class facilities in Lagos producing Quaker Oats and sausage rolls. Today, with this new Cheetos factory, we add another chapter.”
El-Sheikh described Nigeria as standing at a “pivotal moment”.
“Its aspiration to become a trillion-dollar economy in the coming decade is not just hope, it’s achievable — but it requires ambition, trust, and deep collaboration in the public and private sectors.”
The Bigger Picture: Reform, Stability, and Exports
Edun’s keynote went further, pointing to reforms that have freed up 5% of GDP through subsidy removal, boosted foreign reserves to $42 billion, and set the stage for industrialisation. He argued that domestic production and local sourcing reduce FX demand, create jobs, and improve competitiveness.
“Over 90% of the raw materials for Cheetos are locally sourced. That means less dependence on foreign exchange and more jobs in Nigeria. With AfCFTA, Nigerian-made products can now compete across the continent of 1.4 billion people. This is the road to inclusive growth.”
The Cheetos launch may look like a simple product introduction, but its backers say it represents something bigger, which is a test of whether reforms, local production, and supply chain investments can ensure Nigeria’s long-promised economic transformation.
PepsiCo has revealed its intent with $20 million and near-total local sourcing. DP World has committed to reducing logistics expenses that eat up to 75% of product value, and the government is betting on reforms to sustain 5% growth and build a trillion-dollar economy.
The Cheetos plant now seeks to push Nigeria to finally move from being just a market to being a regional hub for manufacturing, trade, and inclusive growth.
