The Consumer Goods Sector Report has stated that more consumer goods companies might be forced to leave Nigeria if inflation and challenges with foreign exchange persist, News About Nigeria reports.
The report noted that the recent departure of consumer goods companies from the local market due to challenges has implications and consequences for consumers as well as other industry players, adding that everyone will hear the grunt of the departure of these companies from the Nigerian market.
It stated that the costs of consumer products will continue to skyrocket due to a decreased supply of these products, and will in turn leave consumers with limited access to alternative products, adding that other industry payers might take advantage of the situation and increase the prices of their products.
It is, however, predicted that in 2024, more people in the consumer goods industry will engage in the restructuring of their businesses, strategic acquisitions, and expansions to sustain profitability and also navigate the challenging operating conditions that exist in the Nigerian market.
It maintained that despite the ongoing struggles with rising costs due to inflation and substantial FX losses affecting their bottom line, consumer goods companies will remain relevant and innovative and will also aim to stay ahead of the curve in serving evolving consumer needs.
It, therefore, appealed to the government to step in, maintaining that without lasting government interventions, which will aid in ensuring that the operational challenges faced by manufacturers are alleviated and done away with for good, the country might experience further scaling down or exits by consumer goods companies in Nigeria.
