Nestlé Nigeria Plc has disclosed it is pursuing an aggressive road map to increase its local content from its current level of 80 percent. This, the company says is to consolidate its position at the forefront of supporting the growth of SMEs in Nigeria through its local sourcing and backward integration and supplier development initiatives.
At its 2019 Suppliers’ Day event in Lagos, an annual event which brings together key suppliers of its raw materials, packaging materials, services and indirect services to share best practices, Nestle reiterated in a statement that local sourcing is not only a smart business decision to ensure supply but also the right thing. This is because, it contributes to transforming small and medium scale businesses involved in Nestlé’s value chain either directly or indirectly.
Raw materials currently sourced locally by Nestlé include maize, cassava, palm olein, sorghum, soya and salt. The company also sources over 90 percent of its packaging materials locally. The company says it is exploring more local sourcing opportunities, which still exist for various spices, vegetables and high-quality cassava flour.
“Responsible sourcing has always been at the core of Nestlé Nigeria’s operations,” said Nestor Finalo, supply chain manager for Nestlé Nigeria in a presentation. “We are committed to long term partnerships with our suppliers as we sustain efforts towards increasing the percentage of raw and packaging materials sourced locally.” He reiterated that quality remains non-negotiable. “As a company, we prepare for the future by investing in new technologies and products while maintaining our strong focus on quality and striving for zero impact of our operations on the environment,” Finalo said.
Sunday Bamikole, quality assurance Manager, Plantation Industries Limited who expressed satisfaction with the Suppliers’ Day event, highlighted “the fact that Nestlé is supporting and taking the lead towards ensuring suppliers are GFSI certified and commend the company for the sincere interest and support towards making our organizations globally competitive while building long term relationships with us.”
Similarly, Loretta Balogun, MD/CEO, LORYB & DP Ventures Limited said, “Indeed, Nestlé is committed to not only sourcing all their raw materials locally but is also investing in small holder farmers in Nigeria by training them in best agricultural practices and empowering them to ensure they have a good life”.
Every day, Nestlé says it continues to touch lives across its value chain, in line with the company’s business principle of ensuring that it provides value for society while delivering value to its shareholders. While the company plans to increase its local sourcing as contained in the statement, the percentage growth being targeted was not indicated.
