THE Nigerian Stock Exchange, NSE, has projected that the Consumer Goods sector of the stock market would grow by 20.4 percent to hit N454 billion by year 2025 from N377 billion in 2013.
Chief Executive Officer, NSE, Mr. Oscar Onyema, disclosed this on the sideline of the interactive session for the Consumer Goods sector for operators and regulators organized by the Exchange at the weekend in Lagos.
He stated that the growth expected in the Consumer Goods sector would be driven by three major factors – population, urbanisation and increased spending power.
Onyema stated: “Nigeria’s consumer market is one of the fastest growing markets in Africa. As far back as 2013, the market was valued at about $377 billion and is now expected to reach about $454 billion by 2025. But over the last few years, Nigeria’s economic landscape has been particularly challenging for the manufacturing sector and particularly the consumer goods industry.”
Continuing, he said: “The sector has also suffered a declining productivity rate largely caused by inadequate and epileptic power supply; substandard trade facilitation infrastructure; high cost of natural gas; multiplicity of taxes/levies/fees; high excise duties on imported raw materials; congestion at the Lagos seaports; and most recently the border closure; all of which have resulted in the reduction in capacity utilization and output of operators in the sector.”
Speaking, Otunba Niyi Adebayo, Minister of Industry, Trade and Investment, said: “there is no doubt that the consumer goods sector remains a critical segment and plays an integral role in the development and advancement of the Nigerian economy.
“The sector has nonetheless experienced various economic turmoils in recent years, as witnessed in areas like foreign exchange challenges between 2014 and 2017. Immediate steps were taken to redress the problems as in the ban of 41 items in 2015. We also can recall currency depreciation which triggered higher cost of production, insecurity in the country leading to reduced sales, high excise duties on importation of raw materials and multiple taxations, just to mention but a few.”