A new industry report has exposed a significant financing gap in Nigeria’s fast-moving consumer goods (FMCG) sector, revealing that just 18 per cent of retailers have accessed formal credit despite widespread dependence on borrowing to sustain daily business operations.
The findings are contained in the Nigeria FMCG Industry Report 2026 published by Omni, which was unveiled in Lagos on Friday by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole.
The report highlights a persistent disconnect between the demand for credit and actual access, underscoring how financial exclusion continues to constrain small retail businesses across the country.
Credit demand remains high, access stays limited
According to the report, about 74 per cent of retailers describe access to credit as critical to sustaining their daily operations. However, only 18 per cent have been able to secure formal loans from financial institutions.
It noted that more than half of retailers face regular credit shortfalls, which directly affects their ability to restock goods on time and maintain stable business flow.
“Approximately 74 per cent of retailers identify access to credit as critical to sustaining daily operations, yet only 18 per cent have accessed formal loans,” the report stated.
Nigeria’s FMCG market remains large but constrained
The report reaffirmed Nigeria’s position as one of Africa’s largest consumer markets, estimating the FMCG sector’s value at around $25 billion, supported by a population of approximately 238 million people.
Despite macroeconomic pressures, the sector continues to show resilience, driven by urbanisation, population growth, and increasing adoption of digital tools in retail operations.
It also revealed that FMCG credit sales reached N325 billion in the first half of 2025 alone, representing a 55.4 per cent year-on-year increase—an indication that credit is increasingly becoming a structural feature of the sector rather than just a survival mechanism.
Digital adoption reshaping retail finance
The study found that 78 per cent of surveyed retailers now use Point-of-Sale (POS) systems, reflecting rapid digital penetration in informal retail networks.
“More than three-quarters of retailers now use digital payment channels, creating new opportunities for embedded finance and data-driven lending,” the report stated.
Analysts say this shift could help improve credit scoring and expand access to formal financing if properly integrated into lending systems.
MSMEs dominate Nigeria’s retail economy
Speaking at the launch, Dr Jumoke Oduwole said Nigeria’s more than 40 million MSMEs remain the backbone of the economy, accounting for the overwhelming majority of businesses and about 80 per cent of retail transactions, largely through informal channels.
She said these small businesses play a critical role in ensuring goods reach households across the country.
“Across markets, neighbourhood stores, distribution channels and retail networks, these enterprises ensure that goods reach households in every part of our country,” she said.
Government highlights financing and support initiatives
Oduwole disclosed that the Bank of Industry recorded about N636 billion in total disbursements last year, including N56 billion in MSME loans and N5.2 billion in grants.
She also noted that over 500,000 MSMEs have been captured in the national MSME database, a development aimed at improving formalisation and enabling more targeted government interventions.
“The FMCG industry is more than a commercial category; it is a critical driver of jobs, manufacturing growth, trade and consumer welfare,” she added.
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| L-R: Chief Operating Officer, Financial Services, Omni, Mayowa Alli; Minister for Industry, Trade, and Investment, Dr. Jumoke Oduwole; Chief Executive Officer, Omni, Deepankar Rustagi; Chief Operating Officer, Omni, Commerce, Adewale Adisa, at the launch of the Omni FMCG Industry Report on Friday June 19, 2026, in Lagos. |
Structural bottlenecks still constrain growth
The minister stressed that FMCG sector growth depends on stronger local production, better infrastructure, improved access to finance, efficient logistics, and stable regulatory frameworks.
She also emphasised the need to reduce bureaucratic bottlenecks that limit productivity.
“It also depends on ensuring that businesses spend less time navigating avoidable bottlenecks and more time producing, distributing, hiring, exporting and creating value,” she said.
Industry players call for data-driven transformation
Founder and CEO of Omni, Deepankar Rustagi, said the report is intended to provide a clearer, data-driven understanding of Nigeria’s FMCG ecosystem, which he described as one of Africa’s most important commercial sectors.
He noted that inflation, currency volatility, rising costs and shifting consumer behaviour have challenged businesses, but also driven innovation and adaptation across the value chain.
“Despite these challenges, the industry has continued to demonstrate resilience. Retailers have adapted, distributors have innovated and manufacturers have continued to invest more in the economy,” he said.
Chief Operating Officer of Omni, Wale Adisa, added that the company’s platform—covering over 150,000 retailers—provides visibility into trade flows across Nigeria, helping identify inefficiencies in distribution and financing.
He said this data can help manufacturers and stakeholders better understand product performance and close gaps in the supply chain.
A sector balancing growth and exclusion
While the FMCG sector continues to expand in value and digital adoption, the report makes clear that access to formal finance remains one of its biggest structural weaknesses.
With millions of small retailers still excluded from traditional lending systems, the industry’s long-term growth may depend heavily on how quickly financial inclusion and data-driven credit solutions scale across Nigeria’s retail economy.