As Nigeria’s economy becomes more challenging, producers have introduced smaller, affordable packaging options for food products to help consumers manage their limited budgets.
This strategy, often referred to as “sachetisation” or “pay-as-you-go,” is no longer just a marketing tool—it has become a survival strategy for both businesses and consumers.
This trend is not new to Nigerians, particularly younger, mobile consumers, but it is evolving. Last year, for instance, yam sellers started cutting tubers into smaller, more affordable portions when a full tuber’s price soared to N10,000. Today, many staple food items like rice, beans, garri, and semovita are sold in smaller quantities, making them accessible to low-income earners.
For fast-moving consumer goods (FMCG) companies, sachetisation helps them stay in business during tough times. For consumers, it offers a way to buy essential goods despite dwindling financial resources.
Short-Term Benefits and Long-Term Challenges
Godwin Ayebe, convener of Consumers Assembly, explained that smaller packages enable low-income earners to buy basic necessities like food, toiletries, and beverages. However, he noted that the cost per gram or liter in these smaller packages is often higher than in bulk purchases, adding to consumers’ financial strain in the long run.
Ayebe warned that opting for smaller quantities could lead to rationing or under-consumption of essential products, negatively impacting nutrition, hygiene, and overall well-being. Additionally, he highlighted the environmental impact of sachetisation, as smaller packaging generates more waste in a country with poor waste management systems.
Economic Implications
The rise of sachetisation reflects Nigeria’s worsening economic conditions. High food inflation and stagnant incomes have made bulk purchases unaffordable for many Nigerians.
According to the National Bureau of Statistics (NBS), food inflation in Nigeria rose to 23.12% in October 2024, up from 17.38% the previous year. This sharp increase has eroded purchasing power, leaving many Nigerians unable to afford basic food items. The situation is worsened by the government’s delay in implementing the promised N70,000 minimum wage, forcing many households to survive on dwindling salaries.
In response, food retailers now offer smaller packages priced between N50 and N500 (approximately $0.12 to $1.25). These packages cater to low-income households but also come with higher packaging costs for businesses, which could reduce their profit margins.
Ayebe emphasized that the need for smaller packaging highlights the widening inequality in Nigeria. “This trend underscores the urgency for economic policies that boost purchasing power for average Nigerians,” he said.
A Call for Solutions
While sachetisation demonstrates the adaptability of food retailers, it also underscores the economic struggles of many Nigerians. Ayebe warned that if inflation, unemployment, and poor agricultural productivity are not addressed, the affordability crisis could escalate into food insecurity.
Consumer advocacy groups like Consumers Assembly are encouraging education on the true cost of sachetisation and promoting smarter spending strategies. Ayebe also urged policymakers to prioritize inflation control, agricultural reforms, and job creation to improve disposable incomes.
To mitigate environmental impacts, he recommended that FMCG companies adopt eco-friendly packaging solutions for smaller units. “While pay-as-you-go packaging addresses immediate needs, long-term solutions require coordinated efforts from businesses, government, and consumers,” he said.
Sachetisation is not just a reflection of innovation—it’s a symptom of economic distress, and addressing its root causes is critical for Nigeria’s long-term stability.
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