Evaluation of Supply Chain Risk Management Practices in Fast-Moving Consumer Goods Companies in South West Nigeria

Supply chain risk management is increasingly critical for FMCG companies facing volatile commodity markets, logistics disruptions, and regulatory uncertainties in South West Nigeria. This study evaluated the supply chain risk management frameworks and resilience practices of 15 fast-moving consumer goods companies with regional operations in Lagos, Ogun, and Oyo States. Risk categories assessed included supplier risk, demand risk, logistics risk, regulatory risk, and foreign exchange risk. Risk management practices evaluated included risk identification processes, mitigation strategy documentation, contingency planning, and supply chain visibility systems. Data were collected from 60 supply chain and procurement managers through structured questionnaires and supplemented by document review of supply chain risk registers. Results showed that foreign exchange risk was rated as the most severe supply chain risk category (mean severity score: 4.3 out of 5), attributed to the naira's exchange rate volatility affecting imported inputs. Supplier risk management was the most consistently practised risk area (mean maturity score: 3.6), while regulatory risk management was weakest (mean: 2.3). Companies with dedicated supply chain risk functions showed 28% fewer supply disruption incidents than those without. Scenario planning for major risk events was practised by only 31% of companies. The study concludes that FMCG supply chain risk management in South West Nigeria is mature in supplier management but immature in regulatory and foreign exchange risk mitigation, and recommends cross-industry supply chain risk intelligence sharing facilitated by the Lagos State Chamber of Commerce.

Keywords: supply chain risk management, FMCG, South West Nigeria, foreign exchange risk, supply disruption