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FMCG Sector Credit Sales Hit Five-Year Peak as Consumers Down-Trade

Nigeria’s fast-moving consumer goods (FMCG) sector recorded a sharp rise in credit sales in the first half of 2025, reaching a five-year high of N325.2 billion which represents a 55.4 percent increase from N209.2 billion in the same period of 2024, reflecting how manufacturers are leaning on extended payment terms to sustain distribution amid weaker consumer demand.

‎International Breweries Plc led the pack with N123.3 billion in credit sales, followed by Nigerian Breweries (N119.2 billion) and Nascon Allied Industries Plc (N37.4 billion). Other players include Dangote Sugar (N27.6 billion), Cadbury (N7.7 billion), Nestlé (N4.6 billion), Unilever (N4.2 billion), Champion Breweries (N963 million), and BUA Foods (N251 million).

‎“Credit sales are now a survival tool,” said Uchenna Uzo, professor of Marketing at Lagos Business School, warning that while it keeps products in circulation, it also heightens default risks.

Also see: Group Alleges NNPCL Boss Favours Private Refinery Over Public Assets

‎Analysts note that consumer spending continues to shrink as households shift to smaller pack sizes and cheaper alternatives. This “sachet economy” has become the default buying pattern, making affordability the key driver of demand. A Buy Now Pay Later (BNPL) report projects Nigeria’s BNPL market to grow 13.8 percent annually, hitting $1.62 billion in 2025.

‎Still, there are signs of relief. Inflation slowed to 21.88 percent in July from 22.22 percent in June, while the naira has remained relatively stable at around N1,500–N1,550 per dollar.

‎Listed consumer goods firms reported combined after-tax profits of N481 billion in H1 2025, up from N140 billion a year earlier, supported by local sourcing and price adjustments.

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