The Chief Executive Officer of FoodCo Nigeria, Ade Sun-Basorun, has called on the Federal Government to give greater policy support to the modern retail sector, which he described as a critical engine for job creation, inflation control, and increased tax revenue.
According to a statement, Sun-Basorun urged improved government support following recent data from the National Bureau of Statistics, which showed a marginal drop in Nigeria’s inflation rate to 22.22 per cent in June, from 22.97 per cent in May.
He stated that a well-structured modern retail sector can unlock macroeconomic growth if supported through targeted government interventions.
“If properly harnessed, the modern retail sector has the potential to create jobs at scale, mitigate inflation, and unlock significant tax revenue for the government,” the FoodCo Nigeria CEO said.
According to him, the structured nature of modern retail allows for efficiencies that can directly reduce consumer prices and improve household savings.
He explained, “In informal trade, prices are often rounded up due to the limitations of cash-based transactions. However, modern retail uses digital payment systems that enable exact pricing.
“When applied across millions of daily purchases, this could help drive meaningful savings for households and ease overall inflation.”
Sun-Basorun stressed that the government’s ongoing reforms in the forex market and push for digitalisation are commendable, but must be complemented by structural support to make the modern retail ecosystem more competitive and sustainable.
“We trust that these [reforms] will be supported by providing a robust infrastructure to facilitate concessionary financing for retail operators, establishing one-stop regulatory desks to ease the logistical challenges around business registration and expansion, and offering tax incentives to encourage local sourcing, especially from rural farmers,” he added.
The FoodCo CEO described modern retail as a proven economic catalyst in many countries, adding that Nigeria must take deliberate steps to tap into the sector’s potential. He stated, “Retail is a big driver of the economy of many countries. If provided with the necessary support, modern retail can become a major stimulus for economic growth in Nigeria.”
He added, “A strong modern retail sector will translate into more jobs for citizens, lower prices of consumer goods, better income for small businesses along the value chain, and more tax revenue for the government that can go into building roads, schools and hospitals.”
FoodCo Nigeria is a diversified consumer goods company with interests in retail, quick-service restaurants, manufacturing and entertainment.
