Oduwole: FMCG Sector Key to Nigeria’s $1trn Economy Vision

Sunday Ehigiator 

The federal government has identified Nigeria’s Fast-Moving Consumer Goods (FMCG) sector as a critical pillar in its drive towards building a $1 trillion economy, revealing that more than 40 million Micro, Small and Medium Enterprises (MSMEs) currently power about 80 per cent of retail transactions across the country.

Minister for Industry, Trade and Investment, Dr. Jumoke Oduwole, disclosed this yesterday while speaking at the official unveiling of the Nigeria FMCG Sector Insight Report 2026 and the seventh anniversary celebration of OmniRetail in Lagos.

According to the minister, the FMCG sector remains one of the clearest reflections of how Nigeria’s economy functions daily, linking agriculture, manufacturing, logistics, retail and technology in ways that directly impact millions of citizens.

“Nigeria’s FMCG sector is far more than a commercial category. It is one of the clearest reflections of how our economy works every day. It connects agriculture to manufacturing, manufacturing to logistics, logistics to retail, retail to millions of Nigerians, and of course, all enabled through technology,” she said.

Oduwole noted that behind every product on a shelf exists an extensive value chain comprising farmers, processors, manufacturers, transporters, warehouse operators, wholesalers, retailers, market women, entrepreneurs, financial institutions and technology providers.

“When these sectors grow, jobs are created, supply chains are deepened, local production expands, and households benefit from better access to essential goods,” she added.

Highlighting the role of small businesses in driving economic activity, the minister stated that Nigeria’s over 40 million MSMEs account for the overwhelming majority of businesses in the country and facilitate approximately 80 per cent of retail transactions, largely through informal channels.

“Across markets, neighbourhood stores, distribution channels and retail networks, these enterprises ensure that goods reach households in every part of our country. They are not merely participants in economic activity; they are the foundation upon which our consumer economy is built,” she said.

She disclosed that through government-backed initiatives, more than 500,000 MSMEs have been captured in the national MSME database, a development she said is helping to strengthen formalisation efforts and improve government support programmes.

The minister also applauded the transformation taking place in Nigeria’s retail and distribution ecosystem, noting that technology-enabled platforms, embedded finance solutions, digital commerce and direct-to-retail models are helping businesses overcome longstanding operational challenges.

“Traditional wholesale systems are being complemented by technology-enabled distribution platforms, digital commerce, embedded finance, direct-to-retail models and last-mile delivery networks. These innovations are improving visibility, reducing inefficiencies, expanding access to working capital and helping small retailers participate more effectively in commerce,” she said.

Oduwole emphasised the importance of data in shaping public policy and investment decisions, describing the newly launched report as a valuable tool for understanding the opportunities and constraints within the FMCG sector.

“Good policy requires good evidence. Good investment decisions require empirical data. Strong markets require visibility, and this report will help bring sharper insights into the structure, opportunities and constraints of Nigeria’s FMCG ecosystem,” she noted.

The minister further highlighted the impact of ongoing economic reforms under President Bola Tinubu’s administration, revealing that Nigeria recorded approximately $6 billion in non-oil exports, representing an 11.5 per cent increase over previous figures.

She also disclosed that more than $50 billion in investment commitments have been facilitated across priority sectors since the commencement of the administration.

According to her, the Bank of Industry disbursed approximately N636 billion in funding, including N56 billion in MSME loans and N5.2 billion in grants, providing critical support for enterprise development and industrial growth.

“These are important signals of renewed momentum across investment, enterprise support, industrial development and non-oil export growth,” she said.

Oduwole stressed that sustained growth in the FMCG sector would depend on stronger local production, reliable infrastructure, improved access to finance, efficient logistics, predictable regulation and enhanced consumer purchasing power.

She reaffirmed the ministry’s commitment to fostering closer collaboration with private sector players through initiatives such as the Platinum Business Champions Programme.

“As a ministry, we will continue to partner with you as you deepen local capacity, strengthen supply chains, expand exports and distribution networks. This is Mr. President’s vision, and it is my delight to be here with you today as you continue to collectively deliver the $1 trillion Nigerian economy,” she said.

On his part, Founder, OmniRetail, Deepanker Rostagi, explained that by documenting data, the report is a reflection of how the growing importance of commerce, trade and entrepreneurship is shaping Nigeria’s future.

Speaking on the significance of the report, he said: “This report reveals that what we are witnessing is more than just resilience. We are witnessing a structural transformation of commerce itself. At OmniRetail, we are fortunate to have a key responsibility in this transformational journey.

“By combining traditional trade with digital payments, data intelligence, embedded finance and artificial intelligence, we have the opportunity to not just to catch up but to leapfrog, to build a commerce ecosystem that is more inclusive, more efficient, more transparent and more accessible for every participant in the value chain.”