PepsiCo, the multinational food and beverage giant, has deepened its presence in Nigeria with the unveiling of a new snack production plant through a strategic partnership with global logistics company DP World. The move, which comes with an investment of over $20 million, is aimed at boosting local sourcing, creating jobs, and tackling logistics challenges in Africa’s most populous nation.
The company also officially launched its Cheetos brand into the Nigerian market. The maize-based snack, already popular in several international markets, will now be produced locally with more than 90 percent of its raw materials sourced within Nigeria. PepsiCo says it is working with Flour Mills of Nigeria to supply flour, while vegetable oil is being sourced from Presco, as part of its backward integration strategy to reduce dependence on imports.
Speaking at the launch in Lagos, Felix Enwemadu, General Manager of PepsiCo Nigeria, said the new facility is another bold step in the company’s three-decade journey in the country. He noted that the partnership with DP World would strengthen the firm’s manufacturing and distribution capacity across all regions of Nigeria.
“We are sourcing over 90 percent of our raw materials, including maize and vegetable oil, locally. This investment will not only improve production capacity but also create more jobs, especially for Nigerian youths,” Enwemadu said. He disclosed that PepsiCo already employs over 1,000 people across its operations in Nigeria and that the new plant will significantly add to that number.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, praised PepsiCo’s investment as a vote of confidence in Nigeria’s economy. He noted that the reforms of President Bola Ahmed Tinubu, particularly the removal of fuel subsidy and liberalisation of the foreign exchange market, have restored fiscal balance and created room for private sector-led investments.
“The removal of fuel subsidies has allowed the government to restore fiscal balance, with more funds for productive investment. The liberalisation of foreign exchange and market pricing has also encouraged confidence from global brands like PepsiCo,” Edun said.
The new Cheetos range, which includes coconut, cheese, and sour cream onion flavours, joins PepsiCo’s growing portfolio of snacks in West Africa. According to the company, the localised production of Cheetos demonstrates its long-term commitment to building a sustainable food value chain in Nigeria.
On the logistics side, Muhammed Akoojee, Chief Executive Officer of DP World’s Sub-Saharan Africa region, said the partnership is anchored on shared goals of improving trade efficiency and reducing costs. He noted that logistics costs in Nigeria are among the highest in the world, with transportation challenges caused by bad roads and infrastructure gaps often doubling global averages.
“The cost of logistics globally ranges between 6 to 8 percent, but in Nigeria, it is double that. In some cases, up to 75 percent of the total cost is spent on logistics. This is unsustainable, which is why DP World is committed to building infrastructure and integrating technology and Artificial Intelligence to make supply chains more efficient,” Akoojee said.
He admitted that moving goods across Nigeria remains a challenge but stressed that DP World’s long-term vision is to smoothen trade and stabilize prices, which will in turn build investor confidence.
Ajit Nair, Managing Director of Fareast Mercantile Company Nigeria, described Nigeria as PepsiCo’s most integrated market with DP World, covering the entire value chain from production to distribution. He said this new plant marks the third PepsiCo facility in Nigeria, a testament to the strength of the partnership.
The new plant, situated on a wide expanse of land in Mushin, Lagos, is equipped with modern manufacturing lines designed to boost efficiency, ensure quality, and support sustainable food production.
With this investment, PepsiCo and DP World say they are positioning themselves to not only strengthen Nigeria’s food manufacturing industry but also to integrate the country into global supply chains while creating a thriving ecosystem for locally sourced products.
