‘Berger Paints investments position the company for sustainable long-term growth, enhanced shareholder value’

Alaba Fagun, group managing director/chief executive officer of Berger Paints Nigeria Plc, speaks on how innovation, sustainability, and strategic investments are shaping the future of the paint industry, while also highlighting the factors driving investor confidence in the company’s long-term growth outlook, writes Iheanyi Nwachukwu. Excerpts

How has the paint industry evolved in recent years?

The paint industry has become increasingly innovative and environmentally conscious. Customers now demand eco-friendly paints with low odour and reduced volatile organic compound (VOC) emissions. At the same time, technological advancements have improved production efficiency, colour consistency, and overall product performance, enabling manufacturers to better meet changing customer expectations.

Why should investors remain confident in Berger Paints’ long-term growth prospects?

Investors can take confidence from the company’s strong profitability growth, improved cash generation, strengthened equity position, and consistent dividend track record. Berger Paints Nigeria Plc continues to invest in operational capacity, technology, product development, and market expansion initiatives. These investments position the Company for sustainable long-term growth and enhanced shareholder value.

What drove the significant increase in earnings per share in 2025?

Earnings per share increased significantly from 211 kobo in 2024 to 542 kobo in 2025, largely because profit after tax (PAT) rose substantially from N610.9 million to N1.57 billion. This performance improvement was driven by stronger sales growth, improved gross margins, and enhanced operating performance across the business.

What government policies would help the paint manufacturing industry grow in Nigeria?

Policies that support local manufacturing would significantly strengthen the industry. These include tax incentives, stable electricity supply, and easier access to industrial financing. Support for locally produced goods would also help reduce dependence on imports, strengthen domestic production capacity, and create more employment opportunities for young Nigerians.

What challenges do companies in Nigeria’s manufacturing sector face?

Some of the major challenges include fluctuations in raw material prices, rising energy costs, and supply chain disruptions. These pressures continue to impact manufacturers across the sector.
However, we remain focused on investing in efficient production processes and strengthening supplier relationships to maintain product quality, operational efficiency, and competitive pricing.

Nigeria’s economy has faced inflation, foreign exchange volatility, and rising production costs. How have these economic realities affected the paint manufacturing industry, and what strategies is your company using to remain competitive?

Nigeria’s current economic environment has undoubtedly created significant challenges for the paint manufacturing industry. High inflation, foreign exchange volatility, rising energy costs, and increasing prices of raw materials have placed considerable pressure on production costs and operating margins. Since some key raw materials and manufacturing inputs are imported, exchange rate fluctuations directly affect procurement costs, pricing, and planning.

These realities have also impacted consumer purchasing power and project execution across sectors such as construction, real estate, and infrastructure, which are major drivers of paint demand.
Despite these challenges, our strategy has been focused on resilience, innovation, and operational efficiency. We are continuously improving our manufacturing processes to optimise costs, reduce waste, and enhance productivity. We are also strengthening local sourcing initiatives where feasible to reduce dependence on imported inputs and improve supply chain stability.

How does Berger Paints contribute to the local economy and community development?

Our contribution extends beyond manufacturing. We create employment opportunities, support local suppliers, and invest in staff training and development programmes to strengthen workforce capacity. In addition, we participate in community development initiatives and promote environmentally responsible practices within the communities where we operate.

How can the government partner with paint manufacturers to support national development?

Government can collaborate more closely with manufacturers through infrastructure projects, housing schemes, and public building maintenance programmes that prioritise locally produced materials.

Such partnerships would strengthen domestic industries, stimulate economic growth, deepen industrial development, and promote greater economic self-reliance.

What role can the paint industry play in accelerating Nigeria’s industrial growth and economic diversification?

The paint industry has a significant role to play in accelerating Nigeria’s industrial growth and economic diversification because it is closely linked to key sectors such as construction, housing, infrastructure, manufacturing, oil and gas, marine, and automotive industries. As these sectors expand, the demand for quality coatings and protective solutions increases, making the paint industry an important contributor to industrial development.

Beyond supplying products, the paint industry supports industrialisation through value addition, job creation, skills development, and the growth of local supply chains. A vibrant paint manufacturing sector creates opportunities for raw material suppliers, packaging companies, logistics providers, distributors, retailers, and technical professionals across the value chain.
The industry can also contribute meaningfully to economic diversification by deepening local manufacturing capacity and reducing reliance on imported finished products.

How is the paints industry in Nigeria promoting local sourcing, innovation, and value addition within Nigeria’s industrial ecosystem?

The paint industry is promoting local sourcing by exploring and expanding the use of locally available raw materials and supporting indigenous suppliers where quality and technical requirements can be met. This not only helps reduce foreign exchange exposure and supply chain disruptions but also stimulates growth in related industries such as chemicals, minerals, packaging, logistics, and industrial services.

Manufacturers are investing in research, product development, and process improvements to create products that are suited to local climatic conditions, customer preferences, and evolving environmental standards. There is increasing emphasis on eco-friendly, durable, and high-performance coatings that meet both local and international expectations.

At our company, we remain committed to continuous innovation, operational excellence, and exploring sustainable local sourcing opportunities that can drive competitiveness while contributing to Nigeria’s broader industrial development agenda.

What role can the paint industry play in supporting Nigeria’s housing, infrastructure, and construction sectors?

The paint industry plays a vital role in supporting Nigeria’s housing, infrastructure, and construction sectors because paints and coatings are essential components of both building aesthetics and structural protection. Beyond decoration, paints serve important functional purposes, including protecting surfaces, enhancing durability, improving safety, and extending the lifespan of assets.

In the housing sector, the industry supports residential development by providing products that improve the appearance, durability, and environmental performance of homes and commercial buildings. As Nigeria continues to address its housing deficit and urbanisation challenges, the demand for quality, affordable, and sustainable paint solutions will remain important.

Looking ahead, what is your outlook for the Nigerian paint industry, and what factors will determine its growth trajectory?

The outlook for the Nigerian paint industry remains positive, driven by long-term opportunities in housing, infrastructure development, urbanisation, industrial expansion, and increasing demand for quality and environmentally responsible products. As Nigeria continues to pursue economic diversification and industrial growth, the paint industry is well-positioned to play an increasingly strategic role across multiple sectors of the economy.

Growth in construction, real estate, manufacturing, infrastructure, and industrial projects will also be major demand drivers for the industry. Increased public and private sector investments in these areas can significantly expand opportunities for paint manufacturers.