Inflation: UAC increased prices of products by 75% to 100% to protect margins – Fola Aiyesimoju

Mr. Aiyesimoju said this during the investor call on the company’s financial performance in the first half of the year.

While responding to questions on how much the company has increased prices to protect margins, the Managing Director stated that the 75% to 100% increase varies across product categories.

He said, “The short answer across the board as you know we have so many products across different categories would be between 75% to 100% on average but it varies quite meaningfully the way you go about it say this product has increased by 75% to 100%.”  

In the past one year, inflation in Nigeria has risen to a 28-year high with the consumer goods section the worst hit as food inflation soared to 40% as of June 2024. In response to this, major consumer goods brands from beverages to food and household products have been forced to adjust prices to mitigate against eroding profit margins.

A recent report by NielsenIQ shows that Nigeria’s Fast-Moving Consumer Goods (FMCG) market experienced a 17.4% drop in transaction volumes this year, as consumers grapple with rising costs. The report, which analysed market performance and consumer behaviour up to March 2024, highlighted a deeper decline compared to the 4% reduction seen in 2023.

In response to the crisis, the federal government has implemented social intervention initiatives, including cash transfers, low-interest loans for businesses—particularly manufacturers—and grants to support MSMEs and other sectors.