The CEO of FoodCo Nigeria, Ade Sun-Basorun, has urged the Federal Government to improve its support for the modern retail sector, which he believes is important for creating jobs, controlling inflation, and boosting tax income.

In a recent statement, Sun-Basorun requested for more government support, stating that new data from the National Bureau of Statistics that showed a small drop in Nigeria’s inflation rate to 22.22 percent in June, down from 22.97 percent in May.

He noted that with the right government assistance, a modern, well-organised retail industry could greatly boost the economy.

“If effectively utilized, the modern retail sector can create many jobs, help reduce inflation, and generate a lot of tax revenue for the government,” said the CEO of FoodCo Nigeria.

He also mentioned that the organized nature of modern retail helps improve efficiency, which can lower prices for consumers and increase savings for families.

He explained, “In informal trading, prices often get rounded up because of cash transaction limits. On the other hand, modern retail uses digital payment systems that allow for exact pricing.

“When this is done across millions of transactions every day, it can lead to big savings for families and help lower overall inflation.”

Sun-Basorun stressed that while the government’s current reforms in the foreign exchange market and its push for digitalization are good, they need to be backed by structural changes to make the modern retail sector more competitive and sustainable.

Sun-Basorun pointed out that the government’s ongoing reforms in the foreign exchange market and its dedication to digitalization are commendable; however, they need structural backing to improve the competitiveness and sustainability of the current retail environment.

“We are optimistic that these [reforms] will be supported by the establishment of a solid infrastructure to facilitate concessionary financing for retail businesses, the setup of one-stop regulatory desks to ease the logistical challenges related to business registration and growth, and the offering of tax incentives to encourage local sourcing, especially from rural farmers,” he said.

The CEO of FoodCo described modern retail as a solid economic powerhouse in lots of countries, saying that Nigeria needs to make intentional moves to harness the sector’s potential. He stated, “Retail serves is a big driver for the economies of different nations. With proper backing, modern retail could really boost economic growth in Nigeria.”

He also added, “A strong modern retail sector will create more job opportunities for citizens, lower prices for consumer goods, better income for small businesses along the value chain, and increase tax revenue for the government, which can be used to develop roads, schools, and hospitals.”

FoodCo Nigeria is a diverse consumer goods company engaged in retail, fast-food dining, quick service restaurants, manufacturing, and entertainment.

Source (Punch newspaper)

Chief Executive Officer of FoodCo Nigeria, Ade Sun-Basorun