PepsiCo Opens New Plant To Strengthen Local Sourcing

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On a warm afternoon in Lagos, PepsiCo and DP World unveiled a new chips production plant.

For Nigeria, Africa’s most populous nation, the launch marked more than a factory.

On a warm afternoon in Lagos, PepsiCo and DP World unveiled a new chips production plant. For Nigeria, Africa’s most populous nation.

It promised growth, jobs, and stronger local supply chains.

Local Sourcing t The Core

Earlier this year, PepsiCo introduced Cheetos, its maize-based snack, into Nigerian shops.

Instead of importing ingredients, the company chose to source more than 90% locally.

Flour Mills now supplies flour, while Presco provides vegetable oil.

By taking this route, PepsiCo tied a global brand directly to Nigerian farmers.

A $20 Million Investment

At the launch, general manager of PepsiCo Nigeria, Felix Enwemadu,reinforced this vision.

“We are sourcing over 90% of our materials locally.

This is only the beginning,” he said.

With a $20 million investment, PepsiCo boosted its production capacity, reduced imports, and created new opportunities, particularly for young Nigerians.

Government And Partner Support

Meanwhile, government officials applauded the move.

Read Also: Nigeria’s ₦6trn Equities Deal Hits 18-Year High

Minister of Finance, Wale Edun, praised PepsiCo’s decision as evidence that investors trust Nigeria again.

He linked the investment to President Bola Ahmed Tinubu’s reforms, including fuel subsidy removal and foreign exchange liberalisation, which restored fiscal balance and encouraged productive growth.

At the same time, DP World highlighted its mission to cut Nigeria’s high logistics costs, often twice the global average.

Sub-Saharan Africa chief executive, Muhammed Akoojee, admitted that logistics sometimes consumes up to 75% of business expenses.

Yet he stressed that DP World continues to invest in infrastructure and artificial intelligence to create more stable supply chains.

Building A Sustainable Future

Managing director of Fareast Mercantile Company Nigeria, Ajit Nair, added that the plant represents PepsiCo’s third facility in the country.

“This reflects the strength of a partnership built on trust, performance, and shared purpose,” he said.

Now operating on a sprawling site in Mushin, Lagos, the factory showcases modern manufacturing lines and PepsiCo’s three-decade presence in Nigeria.

Finally, the arrival of Cheetos in three flavours — coconut, cheese, and sour cream onion — carries a bigger message.

Nigeria is not just another market.

Instead, it is a home where global brands and local talent grow together.

Step by step, PepsiCo is creating jobs, empowering farmers, and strengthening supply chains.

In doing so, it is helping Nigeria shape its role in the global food industry.

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