Only 18% of retailers access formal loans – Report

A new report reveals that a mere 18 percent of retailers in Nigeria's fast-moving consumer goods (FMCG) sector have successfully accessed formal loans. This statistic underscores a significant level of financial exclusion, especially considering that 74 percent of these retailers consider access to credit vital for their daily operations. More than half of them reported active shortfalls that directly hinder their ability to restock inventory on time.

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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 Nigeria FMCG Industry Report 2026, published by Omni, was unveiled in Lagos by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole. The report highlights the sector's resilience, with FMCG credit sales reaching N325 billion in the first half of 2025, a 55.4 percent year-on-year increase. This suggests that credit is increasingly being used as a strategic tool rather than solely a measure to cope with distress. The sector's growth is supported by rapid urbanization, a young population, and expanding digital adoption.

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More than three-quarters of retailers now use digital payment channels, creating new opportunities for embedded finance and data-driven lending.

Digitalization is notably prevalent among retailers, with 78 percent utilizing Point of Sale (POS) systems. This widespread use of digital payment channels presents new opportunities for embedded finance and data-driven lending solutions. The report indicates that Nigeria remains one of Africa's largest consumer markets, with an estimated FMCG market value of $25 billion and a population of approximately 238 million people.

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Nigeria’s more than 40 million MSMEs account for the overwhelming majority of businesses in our economy today and power approximately 80 per cent of retail transactions across the country, largely through informal channels.

Minister Oduwole emphasized the crucial role of Micro, Small, and Medium Enterprises (MSMEs), which constitute the vast majority of businesses in Nigeria and drive about 80 percent of retail transactions, often through informal channels. She stressed that strengthening visibility across the value chain and fostering collaboration among stakeholders are essential for unlocking the sector's full potential and supporting Nigeria's broader industrial and economic development agenda.

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The FMCG industry is more than a commercial category; it is a critical driver of jobs, manufacturing growth, trade and consumer welfare. Strengthening visibility across the value chain and fostering collaboration among stakeholders will be essential to unlocking the sector’s full potential.