By Princewill Ekwujuru

The Chief Executive Officer of FoodCo Nigeria Limited, Ade Sun-Basorun has said that  the Nigerian retail sector is the key to unlocking new growth frontiers as a result of the looming economic uncertainties.

He said this is a result of growing concerns about falling oil prices and the Coronavirus epidemic which is slowing global stock markets.

The FoodCo boss made the assertion while reacting to recent media reports of a slump in growth projections for the country.

He said: “The present precarious economic climate emphasizes the need for all stakeholders to collaborate in actualizing government’s efforts at diversifying the economy. For instance, the retail market segment is currently the third highest contributor to GDP at 16.1 per cent and the Nigerian Stock Exchange (NSE) estimates that it will grow by 20.4 per cent to hit N454b by 2025. The current challenges notwithstanding, it is clear that the sector is critical to driving new growth frontiers for the country particularly if more formalized structures are put in place to optimally harness opportunities within the ecosystem.

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“In its current state, the organized consumer goods sector presents a paradoxical situation. While some Fast-Moving Consumer Goods (FMCG) companies have delivered poor results within the past few years, there have also been notable expansions by some key players, especially within the formal retail space. Looking at the future, there are still ample grounds to be optimistic about opportunities within the sector given the country’s bourgeoning consumer market currently estimated at 52 million, a large middle class, pre-dominant youth population and rapid urbanization. It therefore behoves stakeholders in the sector to make a critical assessment of inherent potentials across the value chain to chart new channels for growth,” he added.

Continuing, Sun-Basorun noted that: “a well-developed formal retail sector will open up feeder economies for real estate, agriculture, small and medium enterprise as well as logistics. For its part, FoodCo is taking the lead in building capacity within the space through the FoodCo Fellowship, a novel and specialized internship program targeted at grooming MBA and post-graduate students for leadership in retail.”

Vanguard