Supply Chain Localisation Strategies and Operational Efficiency in Multinational Consumer Goods Companies in Nigeria

This study examines supply chain localisation strategies adopted by multinational consumer goods companies operating in Nigeria and their effect on operational efficiency and cost management. Persistent foreign exchange volatility, import restrictions, and logistics challenges have compelled many multinationals in the fast-moving consumer goods sector to localise portions of their supply chains by sourcing raw materials domestically and developing local contract manufacturers. Companies in sectors including beverages, personal care, and packaged foods have undertaken significant localisation investments over recent years. The study employs a mixed-methods design combining semi-structured interviews with supply chain directors from 15 multinational FMCG companies and quantitative analysis of operational efficiency metrics derived from published company reports and industry association data. Thematic analysis and comparative performance analysis are applied. The theoretical framework draws on global value chain theory and the transaction cost economics of supply chain organisation. The study evaluates the impact of localisation on procurement costs, production lead times, quality consistency, and exposure to foreign exchange risk, comparing localised versus import-dependent supply chain configurations. Findings are expected to demonstrate that localisation strategies reduce foreign exchange exposure and improve supply reliability but require significant upfront investment in local supplier development and quality assurance systems. Recommendations are offered to multinational operations and procurement directors on designing phased localisation roadmaps and building supplier capability within the Nigerian agricultural and manufacturing ecosystem. Keywords: supply chain localisation, FMCG, operational efficiency, Nigeria, multinational companies