Business is booming.

How we boost Nigeria’s agric value chain, PepsiCo claims

By Faridat Salifu

PepsiCo Nigeria says it has almost completely localised its raw material supply chain, working directly with Nigerian farmers and manufacturers to strengthen the country’s agricultural value chain.

While speaking in an interview with the press, General Manager Felix Enwemadu said the food and beverage giant now sources close to 100 per cent of inputs for its Cheetos and Yum Yum sausage roll brands from domestic producers, partnering with companies such as Flour Mills of Nigeria and Presco Plc.

Enwemadu, who spoke in Lagos, noted that the move not only supports PepsiCo’s Nigerian operations but also creates thousands of jobs across farming, processing and logistics.

“For Cheetos, our main ingredient is corn grits, supplied through Flour Mills’ outgrower scheme involving thousands of Nigerian farmers,” he explained.

“For our sausage rolls, we also rely on locally produced wheat flour and vegetable oils from Presco, while flavours are sourced in-country. Apart from oats, which Nigeria cannot grow due to its climate, we are fully integrated locally.”

He said PepsiCo’s investment in Nigeria, which spans more than three decades, reflects its commitment to building sustainable supply chains and aligning with government priorities on industrialisation.

The Federal Government has repeatedly expressed concern over low returns from agricultural exports despite the sector contributing about 35 per cent to GDP and employing a similar share of the workforce.

Agricultural exports currently generate less than $400 million annually.

Enwemadu said PepsiCo’s local sourcing approach helps address this by adding value to farm produce within Nigeria, rather than relying on imported inputs. “As we fill capacity on our current lines, more investment will follow — which means more jobs for young Nigerians,” he said.

PepsiCo employs over 1,000 workers directly and indirectly in Nigeria, covering manufacturing, distribution and last-mile retail delivery.

The company is also collaborating with DP World to boost manufacturing efficiency and unlock export opportunities under the African Continental Free Trade Area (AfCFTA), positioning Nigeria as a production hub for West Africa.

Enwemadu, however, called for greater policy consistency and infrastructure upgrades to improve competitiveness. “Shipping products from Lagos to Maiduguri can take two weeks; with modern rail it would take two days. That would cut costs dramatically,” he said.

On regulation, he praised agencies such as NAFDAC and SON for enforcing high safety and quality standards. “They audit our plants before any product hits the market. We hold ourselves to global standards,” he added.

Enwemadu said PepsiCo will continue expanding its Nigerian product portfolio, with new flavours of Cheetos launching in the coming months, while longer-term plans aim to use the country as a hub for its West African snacks business.

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