That is exactly why it became the default material for food packaging, consumer goods, retail, logistics, and industrial applications.

A plastic bottle can outlive the person who used it. A multilayer sachet can survive for decades in a landfill. A food wrapper used for five minutes can remain in the environment for hundreds of years. The problem is that the same durability that made plastic useful is also what makes it dangerous.

Packaging has become one of the largest contributors to plastic waste globally. A 2025 LetsRecycle’s estimate put global plastic waste at 225 million tonnes, with packaging remaining the single largest source of that waste.

Across Africa, the problem is becoming harder to ignore. Lagos alone generated an estimated 870,000 tonnes of plastic waste in 2024, much of which ended up in drainage systems, waterways, and informal dump sites.

In July 2025, Lagos began enforcing a ban on single-use plastics, including Styrofoam packaging, disposable cutlery, straws, and certain takeaway containers.

Countries such as Kenya, Rwanda, Ethiopia, Ghana, and Egypt have been tightening regulations around plastic packaging, while extended producer responsibility requirements have become more common across the continent.

Brands, manufacturers, and importers are increasingly being asked to take responsibility not only for producing packaging, but also for what happens after consumers throw it away.

Nigeria has also been moving in the same direction. In 2025, reporting indicated that the Federal Government was strengthening single-use plastic restrictions and developing packaging-sector regulations that would require producers, importers, and brand owners to fund collection, recycling, and disposal programs for their packaging waste.

Brands can no longer think about packaging only in terms of cost and shelf appeal. They now have to think about regulation, waste recovery, consumer perception, landfill exposure, ESG targets, and long-term risk.

Why Recycling Alone is Not Enough

For years, the answer to the plastic problem was recycling, but recycling has not scaled nearly fast enough to solve the issue.

A 2025 analysis of 2022 global plastics data found that only about 9.5% of plastic produced globally was made from recycled materials, while much of the remaining waste ended up in landfills, waterways, incinerators, or open-burning sites.

In many cases, we are simply moving the problem from one part of the value chain to another.

A multilayer plastic sachet may keep a product fresh, but once discarded, it becomes someone else’s problem to collect, sort, transport, recycle, or burn.

Aluminum foil can provide excellent oxygen and moisture protection, but it often requires energy-intensive extraction, complex multilayer combinations, and difficult end-of-life processing.

That is not a circular economy. That is simply delaying the clean-up.

Why Barrier Packaging Matters

One of the biggest reasons plastics and aluminum remain dominant in packaging is that they protect products from oxygen, moisture, grease, oil, and contamination.

• Without that protection:
• Snacks lose crispness
• Powders absorb moisture
• Foods spoil faster
• Pharmaceuticals degrade
• Shelf life drops
• Waste increases

Barrier coatings are what keep chips crunchy, coffee aromatic, medicines stable, and dry foods shelf-ready for months. Oxygen and moisture are two of the biggest enemies of food quality. Effective packaging needs to prevent both.

However, Barrier technology is not limited to food packaging. In the semiconductor industry, chips, processors, sensors, and delicate electronic components are often packaged using specialized barrier films and moisture-resistant materials because even small amounts of oxygen or water vapor can damage performance, reduce reliability, or cause complete product failure.

Semiconductor manufacturers routinely use multilayer barrier films, foil laminates, and moisture barrier bags to protect chips during manufacturing, transport, and storage.

This is because humidity, oxygen, and contamination can corrode sensitive materials and shorten the lifespan of electronics.

Barrier films are also used in OLED displays, lithium batteries, flexible electronics, and printed circuits, where protection from moisture and oxygen is essential.

The challenge is that traditional barrier packaging usually relies on petrochemical plastics, foil laminates, or multilayer structures that are extremely difficult to recycle or biodegrade.

So while brands meet shelf-life requirements, they often increase long-term waste and regulatory risk.

This is where Verdant Sustainability comes in.

A Different Future for Packaging

Verdant Sustainability is a materials science R&D company that enables the shift from plastic to bio-based alternatives. Rather than asking brands to sacrifice functionality for sustainability, Verdant is building packaging materials that deliver both.

Verdant has developed bio-derived, biodegradable barrier technologies that replace petrochemical plastics and aluminum foil traditionally used in food packaging while delivering the same level of performance.

That means brands can still achieve:

• Oxygen barrier performance
• Moisture resistance
• Oil and grease resistance
• Leak resistance
• Product freshness
• Shelf-life extension
• Manufacturing compatibility
• Cost parity with conventional solutions

Verdant’s technologies are designed for real-world packaging environments across the food, beverage, consumer goods, and retail sectors.

The portfolio includes coatings and packaging formats across clamshells, plates, bowls, beverage cups, meal trays, sushi trays, takeaway containers, and more. All products are designed around Verdant’s green sustainable barrier technology.

Why should brands have to choose between performance and sustainability?

For a food manufacturer, quick-service restaurant, retailer, or converter, the goal is not to make packaging less functional. The goal is to make it less harmful.

For brands/companies like Nestle, UAC, Fan Milk, McDonald’s, and Starbucks, this means transitioning to bio-based film coatings for snacks, powders, and dry foods without losing shelf life or increasing costs.

For converters, it means working with materials that fit into existing production lines while helping brands/companies meet regulatory and ESG targets.

For brands, it means avoiding the “green tax” that often comes with sustainable alternatives.

For the environment, it means packaging that naturally decomposes over time without leaving behind microplastics, toxic residues, or complex clean-up costs.

Why This Matters Now

The shift away from plastic is no longer a future conversation. Governments are tightening regulations. Consumers are becoming more conscious. Investors are paying more attention to sustainability metrics. Retailers are demanding more responsible packaging from suppliers.

The companies that move early will have an advantage, while those that wait may find themselves paying more later through regulation, waste obligations, compliance costs, and lost market relevance.

Verdant believes the future of packaging should be high-performing, commercially viable, and environmentally responsible.

Let us talk: enquiry@verdantsustainability.com

About the Author

Gbolahan Alli operates at the intersection of sustainability and execution, translating hands-on experience in building and scaling systems into the commercialization of green chemistry solutions at Verdant Sustainability. His work advancing barrier technologies for packaging and consumer goods is grounded in real-world deployment, shaping practical perspectives on the transition from plastic dependence to viable, scalable alternatives.

This was part of the submissions made by speakers at the recent annual Retail Media Day hosted by Glovo in Barcelona.

The event featured a wide-ranging discussion from industry experts on major industry trends and developments, including Glovo’s growth plans for the coming months.

According to a report from IAB Europe’s Retail & Commerce Media Committee, 2026 is expected to be a defining year for retail and commerce media across Europe, driven by increased investment, AI-enhanced personalization, and growing demand for clearer measurement standards.

Leading the discussion, Glovo co-founder, Sacha Michaud, explained that retail media is becoming an increasingly core pillar of the modern digital advertising ecosystem, with advertisers now seeking more accountable, commerce-led media strategies.

“People realize that they can order from local stores through Glovo, a snowball effect will happen: we will become top of mind,” he said.

In a joint presentation delivered by trio of Connie Kwok (VP of Q-commerce), Alex Menal (VP of Marketing), and Victor Roca, director of Ads Product and Retail Media, they discussed Glovo’s approach to strategic themes such as product, customer understanding, and Q-commerce leadership while presenting the new value proposition for brands to advertise through four new in-app advertising opportunities: segmentation, direct links, video stories, and product cross-sell.

One of the presenters, Kwok, who leads Q-commerce for one of the leading global companies driving industry innovation, defined Glovo’s value proposition as providing ultimate convenience and choice, stating that “having the mall in your pocket” is the final goal.

Speaking during the session, Menal highlighted how Glovo has successfully marketed itself to customers worldwide, positioning itself as a global leader in Q-Commerce.

He shared a very ambitious vision of how Q-Commerce could equal the value that Food currently provides to Glovo’s business, based on its growing run rate, new feature opportunities, and AI applications.

Also speaking, Andrea Di Fonzo, founder of Adcelerator and the former CEO of Publicis Group, said experience was needed in scaling complex service platforms and driving sustained growth for companies in the retail sector.

Fonzo stated that brands have to ensure their advertising is placed in places they don’t know, because if they only communicate in the stages they know, they will miss out on a whole new set of audiences looking elsewhere.

He further noted that in this era of messy communications, platforms like Glovo offer a massive opportunity for brands, as they can rent a virtual space with millions of customers looking in the right place, at exactly the right time: when customers are ready to purchase.

In the closing session, Roca and Anaut underscored the significant role Glovo played in helping brands like Heineken, PepsiCo, and Revolut grow exponentially through tailored, smart in-app and off-app media placements.

In recent years, Glovo has partnered with retail industry giants such as Coca-Cola, Nestlé, PepsiCo, Red Bull, Unilever, and more, helping them maximize their retail media strategies.

The same products come with zero added sugar in Germany, and the UK, among other leading countries.

The report, which was carried out by Public Eye, a Swiss-based NGO, and supported in Nigeria by the Corporate Accountability and Development Foundation (CADEF), shows that the majority of Nestlé Cerelac products sold in African markets contain added sugar.

The report stated that Nigeria is the leading African market for the Company as Nestlé earns $55 million in annual sales from Nigeria, and Nestle Cerelac is the most popular baby cereal brand in the country.

From the research findings, out of the eight different Cerelac baby cereals on sale in Nigeria, five of the products come with added sugar; the remaining three Cerelac products with no added sugar were imported products from Europe and not intended by Nestlé for the Nigerian market.

The laboratory analysis found an average of five grams of added sugar per serving, more than a sugar cube. The highest amount 6.1 grams of added sugar per serving was found in the Cerelac maize variant, intended for babies from six months onwards.

The amount of sugar added by Nestlé to its Cerelac products sold in Nigeria is under the thresholds set by the national legislation, which is based on the standard set by CODEX, that allows up to 20% sugar in infant cereals.

Reacting to the findings of the research, Professor Chiso Ndukwe-Okafor, the executive director of CADEF, in a media parley held at the Lagos State Consumer Protection Agency (LASCOPA) in Ikeja, Lagos, Nigeria, condemned the deliberate act, saying the African babies are being fed with sugary baby foods which Europe would never accept.

“This is not a mistake; this is intentional. Nestlé knows that added sugar is unnecessary for babies, and they formulate sugar-free products for Europe. So why are African babies given one to two cubes of sugar per serving? This is a dangerous double standard,” Prof. Ndukwe-Okafor stated.

Speaking further, she enumerated the various health effects of early exposure of African babies to sugary products, as she says that it promotes obesity, dental decay, diabetes, and lifelong exposure to sweetened foods.

“Consumers are clear. We want zero added sugar in baby foods. There is absolutely no justification for added sugar when natural sugars already exist in the ingredients,”  she further added.

Also speaking at the event, Laurent Gaberell, Public Eye’s Food System researcher, said that Lab research has exposed hidden sugar levels as they are not declared on the products’ labels, adding that,

“What is alarming is that Nestlé does not declare added sugar on labels. Consumers cannot know. Only laboratory testing reveals the truth.”

He further called on the National Agency for Food and Drug Administration and Control (NAFDAC)  and the Standard Organization of Nigeria (SON), among other regulators, to strive for food systems reforms in Nigeria, stating that:

“The Codex standards used worldwide, including in Nigeria, allow up to 30% added sugar in infant cereals. That is outdated and not supported by scientific evidence. It must be revised urgently.” 

Responding to inquiries raised at the event, Dr. Ifeoma Okafor of the National Agency for Food and Drug Administration and Control (NAFDAC) said that compliance is determined by the CODEX standard and that Nigeria doesn’t accept lower nutritional infant products.

“Compliance is determined by CODEX. Differences in formulation across regions do not automatically mean violation. Nigeria does not accept lower nutritional quality because we are a developing country,” she revealed

Dr. Okafor further added that NAFDAC carries out laboratory analysis tests before registering products and that they are continuously ensuring quality control, compliance, and monitoring.

Udo Dan-Ufomadu, a regulatory officer at NAFDAC, hinted that from January 2026, the Agency will enforce mandatory labeling of added sugars on all pre-packaged foods and products in order to ensure quality adherence by the various food brands.

“The regulation was gazetted in 2022, and enforcement begins in January. Companies are aware. We will also introduce front-of-pack labeling so consumers can easily identify high sugar, salt, and fat,” Dan-Ufomadu stated.

Meanwhile, Nestlé Nigeria has refuted the research findings and said that the infant products sold in Nigeria do not contain higher levels of sugar, thereby branding the report as misleading and and scientifically inaccurate.

“We disagree with the Public Eye report. Our infant cereal products sold in Africa do not contain higher levels of added sugars. It is misleading and scientifically inaccurate to refer to the sugars coming from cereals and naturally present in fruits as refined sugars added to the products,” .

As a keen observer of Nigeria’s technology and digital economy sector, I’ve been impressed by your low-key yet effective approach to driving progress.

Despite the ministry’s robust activities, your behind-the-scenes style suggests a commitment to substance over showmanship.

Given your tenure as Chief Technology Officer at Interswitch and your entrepreneurial endeavours at Ceviant, your expertise in the digital space is undeniable. This positions you uniquely to offer strategic advice to the government.

I’m compelled to bring to your attention the precarious state of the telecom sub-sector. Nigeria’s digital economy has tremendous potential, but regulatory challenges, infrastructure deficits, and market pressures threaten the very survival of telecom operators.

The sector’s growth is hindered by issues such as multiple taxation, issues over right of way, infrastructure damage and the unsustainable pricing framework amongst others.

I think I hit the point too early. Let me provide some context; a historical perspective on the sector’s development is essential to grasp the current challenges.

When the Global Systems for Mobile Communications (GSM) was first introduced into the Nigerian market in 2001, the acquisition of a cellular device swiftly became a badge of distinction, signifying one’s immersion in the technological revolution of the 21st century.

The devices became the exclusive purview and financial burden of the elite, relegating many middle-class households to sharing a solitary device among its members. It was expected.

The cost of procuring a Subscriber Identity Module (SIM) hovered between N40,000 to N50,000 (about $384 to $480 at the time), while iconic models such as the NOKIA 3310 and Samsung series commanded prices exceeding N80,000 (about $769) to over N100,000 (about $961).

At inception, networks operated within the 900 and 1800 MHz spectrum with a billing structure set at about N50 per minute, until the introduction of the per-second billing system which revolutionised the industry. As such, barely 10% of the country’s 125-million population could afford to own a device with regular credit recharge.

Mr. Special Adviser, you’re aware that before the arrival of such devices with an unattainable luxury status for the economically disadvantaged, Nigerians had long grappled with problematic services from the oft-maligned Nigerian Telecommunications Limited (NITEL).

Until 2001, NITEL’s 16-year operation was plagued with citizen discontent over poor management as it maintained monopoly over Nigeria’s telecommunications and data services.

The arrival of GSM — spearheaded by MTN, Econet (now Airtel) and MTEL months apart in 2001, and Globacom two years later in 2003 — to relieve the troubled service provider, therefore, changed everything.

In mobile phone accessibility and internet service affordability progress since that time, the numbers have been staggering.

By 2022, two decades after GSM introduction, more than 222 million mobile phone subscribers existed in Nigeria according to the Nigerian Bureau of Statistics and the Nigerian Communications Commission (NCC), out of which over 215 million were active.

The projections for the future are just as phenomenal. A steady surge in smartphone adoption is expected across the country from 2024 to 2029, with the user base estimated to reach a new peak in the next five years.

Network subscriptions costs are also among the lowest in the continent. Mobile data subscriptions in Nigeria, today, are available for as low as N25 while call rates go as low as 9 kobo per second.

However, considering Nigeria’s business climate in recent years, providing affordable services to citizens while maintaining high-standard infrastructure presents the greatest challenge for the telecommunications industry and operators in the country.

Experts within the sector and the economy like Karl Toriola, CEO of MTN Nigeria, and Bismarck Rewane, CEO of Financial Derivatives, have postulated that the sector is at the verge of collapse, one which portends consequential risk to other sectors which rely on the critical services the Telcos provide.

Nigeria’s economy has experienced two major recessions over the last 10 years and currently faces one of its most difficult periods of uncertainty.

Recent market conditions and currency devaluation have plunged the value of Naira in the foreign exchange market, resulting in skyrocketed prices of commodities.

Unfortunately, the telecommunications sector, which contributes approximately 16% to Nigeria’s GDP, is, like other sectors, not immune to the profound repercussions of the prevailing economic upheavals.

The telecoms industry, like many others in the country, is heavily reliant on foreign exchange (FX) for the procurement of essential equipment, infrastructure, and technology.

With a significant portion of telecom equipment and services being imported from foreign markets, fluctuations in currency exchange rates directly impact the cost of operations for industry players.

As the value of the Naira fluctuates against major currencies such as the US Dollar and Euro, the cost of procuring equipment and services denominated in foreign currencies escalates, placing immense strain on the financial resources of telecom companies.

MTN Nigeria and Airtel were among 11 listed companies, including Nestle and Dangote Cement Plc, which recorded 2.02 trillion naira FX losses in H1 of 2024.

Mobile network operators in the telecommunications sector, whose tariffs are rigorously regulated by the NCC, therefore, face a dilemma in balancing investments towards sustaining quality and affordable services for their vast subscriber base with their goal of achieving profitability.

For a sector battling various environmental and infrastructural impediments including frequent fibre cuts due to road construction and vandalism, right-of-way challenges, and exploitative rent-seeking practices, maintaining operational efficiency amidst prevalent economic adversities become increasingly daunting.

None of these existing challenges are alien to industry regulators and stakeholders. Operators’ advocacy for critical infrastructure protection in the ICT/telecommunications sector in recent years has especially served as a striking illustration of a cry for proactive actions to curtail the profound financial impact of such obstacles on its operations.

Yet, while these challenges persist, mobile network operators have remained unflinching in their commitments to ensuring seamless connectivity, service reliability, and pricing affordability for their subscribers.

Despite Nigeria’s headline inflation rate surging to a 27-year peak of 29.9% in December 2023 and reaching 31.7% in March 2024, the telecoms industry, compared to other sectors adeptly adapting to Nigeria’s changing market conditions, continues to find itself traversing the intricate terrain of regulatory compliance and financial viability.

In the mobile market which maintains a strong connection to the telecoms sector, for instance, prices of mobile phones, today, have nearly doubled to reflect the rising cost of production and import, while call and data tariffs largely remain the same they have been for over a decade.

A similar rise in cost has been evident in food prices which increased to over 30% in February, impacting the fast-moving consumer goods (FMCG) sector.

The sector has since adjusted, with FMCG corporations including brewing companies increasing product prices in tandem with the high cost of raw materials and production.

Companies in other sectors providing domestic consumer needs, such as Pay TV companies and Discos, have also duly followed suit by conducting price reviews in recent times.

It should also be noted that energy costs have been a significant factor in the general upward pressure on costs across the economy, particularly affecting telecom companies, for whom diesel accounts for approximately 35% of their operational expenses.

While these price adjustments may be inconvenient for consumers due to limited purchasing power, they are more than necessary for businesses to continue to meet demands, deliver value to shareholders, and contribute significantly to the Nigerian economy.

It is especially pivotal to recognise the broader socio-economic implications for Nigeria if the telecoms sector sticks with its pricing plans as other sectors adapt.

The industry is reputable for its crucial role in driving economic growth, creating employment opportunities, and improving digital inclusion efforts across the country.

Notably, over 15,000 have been directly employed by licensees in Nigeria’s $75.6 billion telecoms sector, according to a December 2022 report by the NCC.

Also, as of second quarter 2023, the Information and Telecommunications industry ranked highly among activity sectors contributing the most to the country’s GDP.

Not least of mobile service providers’ critical contributions to socio-economic issues is their position at the forefront of Nigeria’s digital inclusion ambitions, which sees them providing more than 83 million citizens with the opportunity to benefit from prompt information access and exchange necessary for increased social and business productivity.

A lack of adjustments within the sector amidst FX-dependent pressures and rising inflation will indubitably pose a threat to these transformative indicators in the next few years.

When telecom companies struggle to maintain and expand their infrastructure, there are higher chances of network congestion, dropped calls, and slow internet speeds that can undermine productivity, hinder business operations, and diminish the overall quality of communication services.

Operators’ ability to invest in infrastructure upgrades, network expansion, and technological advancements could be significantly hampered, significantly impacting coverage and service quality.

They can’t afford to test consumers’ patience in this regard.

Quality of Service (QoS) in the sector is, indeed, deemed non-negotiable among consumers. Regardless of any situation within or beyond their control, operators are expected to uphold high standards of service delivery to remain competitive and retain customer loyalty, and any compromise can have far-reaching consequences.

But maintaining and improving on progress made thus far in the sector would be impossible without access to adequate financial resources for further investments.

It is, as such, a critical time to employ new adaptive strategies for the sector to achieve profitability and survive in an increasingly competitive landscape.

Operators such as MTN Nigeria, Airtel, Globacom, and 9Mobile have, commendably, demonstrated an understanding of the grim economic situation impact on citizens’ spending power by adhering to regulators’ rules and showing restraints in pushing for higher charges.

Their show of empathy, however, could be their Archille’s nemesis in a brutal business and economic climate. Hence, the review of tariffs to reflect new economic realities, despite regulators’ reluctance, may be overdue.

At this crucial moment, the onus falls on regulators to ensure consumers are adequately enlightened on how an upward revision of tariffs is imperative for the industry’s viability, as it would provide crucial funding for network infrastructure upgrades necessary for the continued delivery of world class services.

A measured review of current tariffs, with pricing plans that are adaptive and responsive to the changing business and economic climate, would ensure the industry mitigates potential socio-economic and business risks.

Although there would be a need for regulators to strike a delicate balance between consumer protection and the sustainability of the telecom industry.

Nigeria’s leading telecoms companies, including MTN, Glo, Airtel & 9mobile, have expressed their readiness to collaborate with regulators on reasonable adjustments in call and data tariffs to mitigate the cost of running their networks.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos, speaking as a unit under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), explained in a recent statement.

As the economic pressures on the sector intensify, consumers would hope that the operators’ concerns are understood, and urgent actions are taken to ensure their continued access to improved quality services, before the inevitable damaging impact of a lack of it becomes more pronounced than imagined.

As I conclude, I must emphasise that your understanding of the sector is evident from your track record. Your article published on TechCabal on August 21, 2024, compellingly argued the significance of the NIMC for Nigeria’s digital future.

Building on this, the NIMC and Nigeria’s digitalization efforts rely heavily on telecom sustainability and development.

Consequently, Nigeria’s digital transformation and leveraging technology for national economic growth hinge on telecom efficiency, underscoring the imperative to address the sector’s concerns.

I acknowledge that you are neither the supervising minister for the industry nor the regulator. Incidentally, the current individuals holding these positions are doing an exemplary job, given the circumstances.

Nevertheless, your in-depth knowledge of the industry and the trust you’ve earned from the president and minister position you uniquely to intervene effectively.

You now have a critical opportunity to bring to the president’s attention the plight of this vital sector, often described as the ‘golden goose’ of Nigeria’s economy.

By advocating for strategic policy decisions, such as cost-reflective tariffs, tax harmonization, intervening in right of way issues amongst others, you can help restore investor confidence, drive infrastructure development, refocus on key objectives, and enhance network optimization for both private and public entities.

*Edidiong Samuel Akpabio is a Nigerian public commentator, researcher and academic. He can be reached via: esakpabio@yahoo.co.uk

The nutritional situation in various regions of the African continent is complex. According to World Bank reports many children in the country suffer from stunted growth and anemia due to poor nutrition.

As a result, food manufacturing businesses in Africa must take responsibility by providing products with essential nutrients to help combat nutritional deficiencies in the population.

Meeting the population’s nutritional needs

Affordability is a critical factor in the fight against malnutrition and food insecurity.

For many communities, the cost of nutritious food is a barrier to achieving a balanced diet.

In Central and West Africa, NESTLÉ aims to provide children and adults alike with the essential nutrients they need for healthy growth and development.

“In 2022, Nestlé served consumers in our region with 89.5 billion servings of products fortified with at least one of the 4 main micronutrients we are deficient in (Iron, Iodine, Zinc, Vitamin A), to help them address the micronutrient deficiency gaps, particularly, iron deficiency.

‘’Our recent introduction of NIDO Milk & Soya in Nigeria is part of the company’s commitment to making better nutrition affordable and accessible across the region.

‘’This shows how affordability can be integrated into nutritional solutions, ensuring that essential nutrients are within reach for all, regardless of socioeconomic status, – Salomé Azevedo, Business Executive Officer – Dairy, NESTLÉ Central & West Africa”.

Recognising that accessibility also influences affordability, NESTLÉ uses locally sourced soybeans for the manufacturing of NIDO Milk & Soya in Nigeria. In this way, the company does not only support local agriculture but also ensures that the product is readily available to consumers in the region.

This localised approach to production and sourcing reduces transportation costs, lowering the price of the product for the end consumer.

A sustainable solution

Sustainability is at the heart of NESTLÉ’s operations. Supporting Nigerian farmers not only provides them with a steady source of income but also reduces the environmental impact of dairy production.

As NESTLÉ strives to meet its global target of reducing emissions by 20% by 2025, initiatives like these demonstrate that it is possible to achieve nutritional goals while remaining a responsible corporate citizen.

The financial statements published on the website of the Nigerian Exchange Group (NGX) has revealed.

The listed firms incurred significant losses in the 2023 financial year, largely due to forex-related losses.

Furthermore, Nigeria’s largest conglomerate, Dangote Industries, in its 2023 financial statement said it incurred N164bn FX loss in 2023. The conglomerate said the loss was primarily due to its operations in other countries.

Another manufacturing giant, BUA, also reported a forex loss of N69.9bn. This represented a significant increase from the N5.5bn it recorded in 2022.

The firm said,

“The Company is exposed to foreign exchange risk arising from future commercial transactions and some recognized assets and liabilities to the US dollar and euro.

It said “Management minimizes the effect of the currency exposure by buying foreign currencies when rates are relatively low and using them to settle bills when due. The company is primarily exposed to the US dollar and Euro.”

Meanwhile, Nigerian Breweries, according to the NGX report, in its audited 2023 financial report, recorded a loss of N153bn, a sharp contrast to the N26.3bn recorded in 2022. This means that the company’s loss increased by 83 percent in 12 months.

The forex loss had a huge impact on the firm’s overall performance in the 2023 financial year, driving its net loss to N106bn.

The FMCG giant, Nestle Nigeria, was not also spared, in its 2023 financial; the company said due to the depreciation of the naira, it incurred forex-related losses to the tune of N195.bn.

The firm said its profit-after-tax was negatively impacted by the depreciation of the naira as its operating cost jumped by 41.2 percent to N122.7bn.

Another big player in the FMCG sector, Cadbury Nigeria, in its 2023 financial statement said it incurred a loss of N36.93bn due to exchange rate differences in 2023. The currency-related challenge was a major theme that negatively impacted the company’s financials in 2023.

In response to the negative equity of N15.08bn recorded in 2023, reflecting a 213 percent decrease from the previous year, Cadbury Nigeria has proposed a strategic move to address its financial structure.

The company plans to convert its outstanding $7.7m loan payable to its major shareholder, Cadbury Schweppes Overseas Limited, into equity.

However, in the telecommunications sector, MTN Nigeria recorded a staggering forex loss amounting to N740.4bn, NGX reported.

This represented an 804 percent increase compared to the N81.8bn recorded in 2022. While in the banking industry, FBN Holdings took a significant forex loss valued at more than N350bn in the  2023 financial year.

The HoldCo, in its unaudited financial report, said N253.7bn net forex losses were recorded in the final quarter alone.

It blamed the losses on a policy shift implemented in June 2023 — the liberalization of the foreign exchange market. Cumulatively, the seven firms lost a total of N1.7tn to the depreciation of the naira.

Konga, Nigeria’s leading composite e-commerce giant, has been ranked among an exclusive list of 25 companies rated as the best place to work in Nigeria for 2023.

The list, released by professional networking platform, LinkedIn, saw the Konga Group placed in rarefied company with the likes of Ernst & Young, MTN Nigeria and Sterling Bank, among others.

In arriving at the list of companies that made the list, LinkedIn disclosed that it had relied on eight criteria that have been shown to lead to career progression, which include: ability to advance, skills growth, company stability, external opportunity, company affinity, gender diversity, educational background and employee presence in the country.

Equally important, it had revealed that the selected companies all stood out for offering their employees the right environment to grow their careers.

Furthermore, LinkedIn said the methodology factored in key components like how employees are advancing both within a company and when they leave, how they are upskilling while employed there and more, which reveal companies that help set people up to get ahead in their careers. Crucially, it had also considered factors like attrition and layoffs.

“Companies that have laid off 10% or more of their workforce between Jan. 1, 2022, and the list launch, based on public announcements — or that have attrition greater than 10%, based on LinkedIn data — are ineligible to rank,” it said.

The development comes against a backdrop of significant headcount actions among global tech companies and other top brands, with the likes of Google, Meta (Facebook), Amazon, Microsoft, Accenture, Twitter, Netflix, Shopify, Lyft, Apple, Tesla and Zoom, among others, laying off thousands in the face of uncertain economic conditions.

A leader in the Nigerian e-commerce space, Konga was identified by LinkedIn as a company offering a wide range of products, including electronics, fashion, beauty and personal care, home and kitchen appliances, and more.

Acquired by the Zinox Group in early 2018, Konga has risen to the pinnacle of the e-commerce space, carving a niche for itself with its customer-centric approach, pocket-friendly pricing, status as a reliable source of genuine products and its growing ecosystem of thriving verticals which include KongaPay, a CBN-licensed mobile money wallet, Konga Travels & Tours, an online travel booking agency and Konga Health, a digital healthcare distribution company, among several others.

The company has also received regular rave reviews from shoppers and industry experts alike, with the most recent coming via a consumer-focused survey which projected Konga as the most admired and innovative e-commerce company on the African continent.

The survey was published on March 15, 2023, coinciding with this year’s anniversary of the World Consumer Rights Day.

In addition to Konga, other companies ranked in the 2023 LinkedIn report include Interswitch Group, First Bank of Nigeria, Standard Chartered Bank, NNPC Limited, Eko Electricity Distribution, British American Tobacco (BAT), Ikeja Electric, Nestlé, ExxonMobil, AB InBev, UBA Group, IHS Towers, SLB, Halliburton, Shell, TotalEnergies, Tropical General Investments (TGI) Group, Huawei, Wema Bank, Deutsche Post DHL Group and 9mobile.

No doubt digital technology is redefining manufacturing, distribution and retailing which in turn reflects on our day-to-day living.

There have been and will continue to be shifts in the way several sectors of the economy operate as the rising emergence of B2C and B2B e-Commerce platforms in Nigeria typifies how digital technology is driving the marketplace.

After the Industrial Revolution of the 18th century, Technology Revolution energised by information and communication technology or digital technology, is another big wave that has had an unmatched impact on the world’s social and economic landscape in the 21st century.

At present, e-Commerce is helping manufacturers, distributors and the retail segment of the Nigerian economy to reach their customers faster, deepen market penetration and reach remote locations more easily.

Adewale Opaleye, CEO of Alerzo, a B2B e-Commerce platform, said his company’s mission is to empower the nation’s $100 million worth retail segment through digital products by equipping them to run as profitable and sustainable businesses.

To this end, the role of tech-driven B2B e-Commerce platforms is especially profound in their support for manufacturers, distributors and retailers by enabling efficient Factory-to-Retail distribution for food and consumer goods companies, thereby helping to bridge disruptions in the supply chain.

Manufacturers and business owners no longer have to wait for customers to walk to the shelf or market stall to buy products, as they are daily meeting buyers and prospective users of their goods and services on the digital space, providing them convenience and uptaking positive user experience.

Through working with fintech companies, payment solutions and financial services providers, B2B e-Commerce companies impact on the national economy by deepening financial inclusion and bridging the gap for the unserved and underserved.

This distributor has probably done business with you for five, ten years or more, knows your business, your purchase, sales and payment patterns, and can in fact, offer financial services better suited to your business.

This is because they know more about you than perhaps the big-name bank you use down the road. For example, when you need to expand your business from one to two shops, your bank is unable to give you the loan to help you do that because, frankly, it can’t tell whether or not you are into what you claim is your business.

Your bank statement does not contain enough information about your business to help them decide and they don’t know what you sell daily, weekly, etc. Or the margins you get on each supply you receive and sell.

But, your distributor provides you goods, maybe weekly or even daily, knows the volumes you move and how promptly or not you make payments. Also knows the margins in each product. Just like you, they know the business.

If the distributor could finance you to grow your business, you will buy more from him. And sell more. And she in turn will pull more volume from Nestle, P&G, etc. Win-win-win for everyone.

The spoiler? That distributor is not a bank and can hardly do more than give you goods on credit, occasionally. She definitely doesn’t have the liquidity to cater to all of your growth needs.

That’s where embedded finance comes in.

A Forbes article describes embedded finance as “the use of financial tools or services — such as lending or payment processing — by a non-financial provider,” and expanding this, the end goal is to offer customers a payment experience that is likely to keep them loyal and continue doing business through that platform.

Here are four ways the FMCG industry can utilise embedded finance, to offer financial services throughout their supply chain, without having to grow through the overhead of becoming banks themselves.

Credit line to keep goods moving

The supply chain as at today is mostly analogue and it is hard to accurately know in micro details, what role every participant has played. To be clear, a manufacturer or distributor would have records of how much inventory it sold or not, but does it know what moved across different categories of distributors and down to retailers? Not likely. And definitely, not accurately.

Digitizing the workflow creates an integrated ecosystem in which every player becomes visible in the supply chain. This is especially important for players closer to the bottom of the chain, many of whom the FMCG manufacturers would have no direct records of, yet are active participants in getting goods down the last mile and to consumers.

Many of these could rely on physical bookkeeping to track their finances, but when they need a credit line for goods from the same company, showing a track record becomes challenging. Even worse when they buy their inventory through layers and layers of middlemen and sales agents.

A finbox article emphasised that “The digital integration of smaller distributors and local stores through payment solutions, accounting apps, and banking solutions will generate standardized data on transactions within the chain, leading to increased transparency at every stage – tracking goods, inventory management, and sales.”

In essence, offering digital tools that help a retailer to spend, receive and track their money – embedded finance, could allow a 3rd party (or even a bank) have the visibility and confidence to step in to offer credit lines that support the retailer with goods or services (as the case may be), based on their transaction history, which would have been recorded on the platform.

In practical sense: If a shop owner usually buys N20,000 worth of inventory every week, consistently, and a bank or lender has visibility into this, they are able to step in to help increase the basket size to N30,000.

Needless to say, the more goods the retailer is able to sell, the more the FMCG distributor or manufacturer itself stands to make. With embedded finance – inserting the services of the bank or lender into the (now digital) exchanges between retailer and distributor, we are now able to determine based on transactions; who is qualified for what level of credit line.

It becomes possible to have data driven decision making that keeps retailers in business and possibly expand, and invariably, the company at the top of this chain keeps winning.

Insurance on sales

Insurance is often overlooked in this part of the world and when offered to people, it is not unusual to hear; ‘loss is not my portion’. Yet, losses occur, and perhaps more frequently than many would like to admit.

However, there are instances where insurance is not optional, especially for transnational movement of goods.

As part of the supply chain experience, insurance protection can be embedded within the solution offered by the FMCG manufacturer or distributor.

As usual, an insurance provider needs historical data to determine risk and price it appropriately. The digitization effort creates this trail and makes this possible.

In practical terms: It’s not uncommon for drivers of delivery vans to drive off with goods and cash. Or get waylaid by urchins. Embedded insurance protects against this possibility. But requires digitization to be effective.

There are even more interesting insurance products that can be designed: Imagine a retailer getting money back for inventory they were unable to sell due to external factors? Yes, possible.

A financial bouquet to do more

The account number that ties any dealer in the supply chain to the embedded finance solution, can also be used for any regular banking service. So, when the delivery of Indomie Noodles comes from Dufil and the distributor needs to pay the haulage company, they are able to do so through the embedded finance solution provided by Dufil.

They would not need to log into a separate bank account, then make a transfer, or worse still, hand over a wad of cash.

Payment for warehouses, store rent, utilities and even salaries of employees can be done from that account provided by the FMCG company.

A distributor can make all business related expenses from that single account, making it easy to accurately determine what costs are associated with that business, and how profitable or not it has been.

The good part of this? Because the account is provided by the FMCG company or Distributor, they usually have negotiated “corporate pricing” with the bank or financial service providers… and because they are not in this to make money from banking services, per se, they are able to pass those gains down to the retailer in the form of cheaper services, etc. Imagine sending money for less or buying airtime at a discount because the margins of the bank have been passed to the retailer in the form of incentives.

Integrated payment experiences to eliminate cash

Every distributor and manufacturer knows that cash handling is a big problem and cost. Retailer receives cash from his own customers.

Retailer pays the wholesaler or distributor in cash. Everyone has to count, reconcile and move that cash around. Someone pays for the insurance on that cash, someone pays the cashless penalty on that cash, Etc.

With an embedded bank account, the distributor can in one-click take payments from the account of the retailer when the time comes to pay.

With an embedded account, customers can pay directly into the account of the retailer versus cash. And these days, they can do that with either cards or transfers.

And the incentive for the Retailer to push this? Every inflow and outflow from that account helps him to create the required data trail through which he can get the credit line with which he can start his 2nd shop or buy more inventory. An unending hamster wheel of growth..

In conclusion

Embedded finance solutions are ready for deployment within days and do not require building from scratch. OnePipe makes it possible for non-financial institutions like FMCG manufacturers and distributors, to offer financial services without becoming fully fledged providers.

From facilitating credit to offering investment possibilities, each possibility is in itself a full time job, with requirements varying from tech to operations, regulation, dealing with things like fraud, compliance etc, yet, possible to offer as a single suite through embedded finance.

The experiences for customers keep them integral in the supply chain, and the implementing FMCG expands revenue without ‘investing heavily’ in the tech to achieve this. What is there not to love about embedded finance?

However, informal retail Micro, Small, Medium-sized Enterprises (MSMEs) are largely underserved and underbanked. Plus, they face a distinct challenge: their scarce working capital must be balanced between various products that need to be stocked, or else they lose customers.

With these retailers typically generating 80%-85% of their revenue through the sale of fast-moving consumer goods (FMCG), a collaborative partnership between Nestlé Eastern and Southern African Region, Nomanini and Standard Bank is providing MSMEs with access to working capital via Trader Assist, a digital finance solution that enables retailers to sufficiently stock up their shops. 

With Trader Assist, Standard Bank provides much-needed access to responsible working capital while Nestlé enables quality products to be delivered to the retailers, helping them to offer a wider range of quality products and attract more customers.

Since launching the solution, Standard Bank has been able to onboard more than 20 merchants per week per branch with minimal back-office staff. 

More than 70% of retailers who were onboarded were eligible for credit after the initial 30-day period, and over 80% of those retail merchants who used credit once went on to become repeat borrowers. This credit has funded between 60%- 80% of retailers’ trading volumes.

Vahid Monadjem, CEO and founder of Nomanini, says, “Access to finance has been a major obstacle for MSMEs in Africa. Trader Assist connects the informal retail ecosystem by integrating payments, working capital, and data analytics to help ensure small retailers continue to thrive.”

Retailers who access working capital credit have an approximately 30% higher activity rate than those who do not. Alex Chalwe, the owner of Edua Grocery in Lusaka, Zambia, shares that prior to the arrival of Trader Assist, things were tough. “We couldn’t stock up adequately and we only carried a few goods. From the time Trader Assist came, the number of products we stock has gone up.”

Proprietor of Freshways Grocery, Moses Lungu, adds that he was struggling to balance his stock, but now he is able to split the capital on different products. “As I sell the products, I’m able to get other things even while I’m preparing to repay the advance.” 

Trader Assist proved particularly helpful to retailers during the COVID-19 pandemic. Esther Mpamba, owner of Lusaka-based CTV Grocery, says, “When COVID-19 came, a lot of businesses were affected. Many goods from abroad were not entering the country because of the lockdown. Although I was affected by the pandemic, I was still able to order goods and Nestlé was able to deliver their products to me. Trader Assist grew my capital, which enabled me to buy more products.”

John Ashley, chief financial officer at Nestle East and Southern Africa Region, concludes by saying, “Informal retailers require a holistic solution that leverages technology and partnership to enable and sustain their business growth in the long term. With the Trader Assist programme, we aim to support 10,000 traders in growing sustainable businesses in Zambia. We plan to expand our partnership across eastern and southern Africa thereafter.”