Feature/OPED
Making Most of Sachet Model: Changing Banking, Insurance, Real Estate, Investment and Telecoms Landscape
By Timi Olubiyi, PhD
Sachets dominate the retail industry, particularly the Fast-Moving Consumer Goods (FMCG), in many parts of Africa but more significantly in Nigeria, where the population is high and there is a huge demand for consumer goods.
Therefore, sachet products or single-serve packs, as they are normally called in the FMCG industry, are dominating the retail landscape and they are products that can be consumed at once or ready for single usage.
In colloquial terms, the model is referred to “sachetisation” which is known to have kicked off in Nigeria in the ’90s with the making of smaller sachets of drinking water (pure water) and Cowbell powdered milk by Promasidor.
Then, the idea was necessitated by innovation to penetrate the larger low- or no-income populace, however, the idea was later followed by intense and stiff competition.
Today, literature suggests that over 60 million units of pure water is consumed per day with loads of other sachet pack products in Nigeria.
The sachet trend has continued to expand due to shrinking income levels, wide-spread hardship, and rising poverty amongst the populace and these no doubt have caused the growing adoption of sachet packs in the country in recent times.
More so, for companies, the tough operating environment, decrepit infrastructure, porous borders, waning bulk consumption has further heightened the need for the sachet model adoption.
Both individuals and businesses are feeling the weight of the economic challenges and over time, the disposable income of consumers continues to wane. Besides, the novel coronavirus (COVID-19) pandemic, economic recession and the high inflation rate in recent times in the country have also continued to worsen the situation, majorly eroding the purchasing power of many individuals, households, and even companies.
The current economic situation has also made products and services more expensive nationwide. In fact, many manufacturing companies are witnessing reduced patronage because not everyone can afford the bulk purchase or regular packs, and consumers continue to look for cheaper alternatives.
So, “sachetisation” is a business strategy and an alternative to engaging customers continually in this trying time. The idea is to make products affordable to consumers, in particular, the majority that are daily income earners and that constitute the large chunk of the country’s population.
Most companies have resolved to adopt the “sachetisation” model to give some of the poorest people in Nigeria access to everyday household essentials with ease and for continuous patronage.
In fact, companies continue to innovate and roll out sachet products to enable them to penetrate the larger low-income markets which are the worst-hit economically. Also, for the companies this time, it is a way to increase sales within the customers who cannot afford to buy in larger quantities.
History has it that “sachetisation” is not something that just began in Nigeria of Africa. The ‘sachetised’ products have long been part of the Indian culture, which is believed to have pioneered the bite-sizing of consumers’ products and commodities some 70 years ago, beginning with tea, of course, in small paper pouches tucking precious leaves just enough to make tea for two.
Even though the sachet model saves wastage with portion control, it requires minimum packaging materials, less storage, low shipping, and transportation cost, and most importantly, it is pocket friendly to the end-users.
However, the painful truth and disclosure are that this trend is an indication of income inequality, unaffordability, the wide gap between the haves and have nots, high unemployment rate, dwindling economy, and high level of poverty in the country.
Supportably, the National Bureau of Statistics (NBS) in the “2019 Poverty and Inequality in Nigeria” report highlights that 40 per cent of the total population, or almost 83 million people, live below the country’s poverty line of N137,430 ($381.75) per year.
This figure even appears underestimated in my opinion due to lack of data on the extremely huge informal sector of the country.
However, these sachet products give the poor in the country the access to everyday household essentials even though their disposable income continues to shrink in real terms.
From observation, hardly is there any market leading FMCG company in Nigeria that has not manufactured a single-serve pack (sachet packed product) just to capture the poor consumers.
To buttress the adoption of this model, the various operators in the open markets in the country, unknowingly practice the sachet model on perishables, vegetables, and foodstuffs freely; all due to economic reasons and the waning purchasing power of the consumers.
The regular essential consumables that are noticeable in sachet are milk, detergent, cooking oil, cereal, margarine, liquor, pepper mix (pepper, tomatoes and onions), toothpaste, sugar, tomato sauce, shampoo, cornflakes, seasoning/spices, biscuits, dishwashing liquid, shaving sticks, cereals, bleach, Lipton sachet with just two tea bags, diaper sachet with just two units, disinfectant and energy drink amongst others.
From sampled opinion, this sachet trend is on the increase in a bid for companies to continue to increase market share, increase market penetration, and remain competitive.
The important thing is that the trend is now becoming increasingly popular and even choice brands are not left out of the growing wave.
An example is the revered creamy liquor brand, Baileys, which has always packaged its products in special bottles of different sizes, has adopted “sachetisation” as well. This is to encourage quick sell and increase competitiveness in the consumer goods space, where affordability continues to be a big issue.
It is a common argument that consumer goods are needed by humans irrespective of social class to reasonably live and survive. But the common trend in Nigeria is that the low-income earners, also known as Bottom of the Pyramid (BOP), most time ends up paying more for consumer products than the rich who buy the regular packs and sometimes in huge quantities.
Simply put, the poor pay more than the rich for the same basic products in real terms in Nigeria.
For instance, the retail price of a 50g sachet of cereal is N100, 10 sachets cost N1000 (50g X 10 = 500g). However, the retail price of a 500g pack is N750.
Conspicuously, purchasing 500g sachets of cereal cost approximately 33% more. Even imagine, in some cases, an additional 50g to 100g comes as an extra giveaway on a 500g pack when purchased during promotion time at no cost. The reality is that poor Nigerians are under-served and over-charged with consumer goods while the rich spend even less.
Importantly, companies need to note that the population of the poor in the country continues to grow, indicating that those unwilling to flow with the sachet trend will be at risk of running out of business.
Considering the economic grieves in the country, the trend is beneficial as regards patronage, sales, and business continuity. No doubt, the sachet model is on the increase in the country and it is currently a winning strategy to sell what a large percentage of the population can afford.
All said, the points raised above are not to completely justify “sachetisation” as a business strategy but to also implore the government to look at measures to tackle multidimensional poverty- which includes food security, housing, health, education, and security which directly impact the wellbeing of the populace.
Therefore, government poverty reduction aspirations need to be heightened to mitigate the chronic hardship in the country and socio-economic plans need to be in place to lift more people out of extreme poverty and this should be a priority now.
The environmental implications particularly waste disposal is another huge matter that seems to require great attention because sachets add to the compounding problem of pollution in the country.
Therefore, key policies and measures to encourage proper waste management, and recycling in the country should also be considered to avoid huge environmental pollution.
In conclusion, context observation indicates “sachetisation” is now more like a necessity than an option in the country due to increased deprivation in myriad aspects of life.
The telecommunication and some real estate companies in the country are currently exploring the sachet model with their various smart (sachet) pack products with daily payment options.
Above all, it is not even out of place to mention that just like these companies and the FMCG, the financial sector- banking, insurance, and investment management companies and even the Cable TV operators can ‘sachetised’ to make services more accessible and affordable for the masses.
However, leveraging innovation and technology will be of great significance to achieve this. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi, an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. A prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: dr***********@***il.com, for any questions, reactions, and comments.
Feature/OPED
Designing Africa’s Power Systems for Reality, not Abstraction
By Louis Strydom
Last year, I argued in my piece Lean Carbon, Just Power that a limited and temporary increase in African carbon emissions is justified to meet the continent’s urgent electrification needs.
That position was not a retreat from climate ambition. It laid out a credible lean-carbon pathway that reconciles power systems development realities with climate arithmetic.
The central question remains: not whether emissions must fall, but how much temporary headroom is tolerable to accelerate energy prosperity for a continent responsible for roughly 4% of global CO2.
The flexibility equation
The future of Africa’s electrification is neither “all renewables tomorrow” nor “gas indefinitely”. Intermittent renewables alone cannot power the continent’s fragile grids at scale. Solar and wind require highly dispatchable power capacity to ensure the reliability of the system.
The real choice is not between renewables and fossil fuels in the abstract; it is between flexible firm power that complements solar and wind, and the de facto alternative: the increasing reliance on high-emissions diesel backup and widespread grid instability.
I argue that a realistic transition strategy must embrace “a capped carbon overdraft”: a strictly bounded, time-limited deployment of flexible power plants running on gas that supports the deployment of renewables and declines according to a binding schedule. This strategy means accepting minimal, temporary emissions to allow for a faster, cleaner and more resilient clean transition.
The response to this argument drew serious scrutiny. Three objections deserve a direct answer.
First: Does the case for flexible thermal power hold on a full life cycle basis?
It does. Our power system studies in Nigeria, Mozambique, and Southern Africa consistently reach the same conclusion – the least-cost long-term system is renewables-led, with flexible engines balancing variability. That holds across capital, fuel, maintenance, carbon pricing, and decommissioning. South Africa’s Integrated Resource Plan 2025, approved in October, makes the point concretely: it projects 105 GW of new capacity by 2039 with renewables as backbone, yet includes 6 GW of gas-to-power by 2030 explicitly for grid stability. Even the continent’s most industrialised economy concludes it needs dispatchable thermal capacity to underpin a renewables-heavy system. The question is not whether firm power is needed, but how to make it as clean and flexible as possible.
Second: Does this argument talk over Africa’s ambition to leapfrog fossil fuels?
No. It is designed around that ambition. Wärtsilä launched the world’s first large-scale 100% hydrogen-ready engine power plant concept in 2024, certified by TÜV SÜD, with orders opening in 2025. Ammonia engine tests now demonstrate up to 90% greenhouse gas reductions versus diesel. These are not roadmaps. They are ready-to-use technologies. The honest difficulty is timing. Sub-Saharan grids averaged 56 hours of monthly outages in 2024. The African diesel generator market is growing at nearly 7% a year, projected to reach 1.3 billion dollars by 2030. Nigerian businesses spend up to 40% of operational costs on fuel for backup power. That is the real counterfactual – not a continent neatly powered by sun and wind, but a billion-dollar diesel habit deepening every year the grid stays unreliable. Even Germany is tendering 10 GW of hydrogen-ready gas plants with mandated conversion by 2035 to 2040. If Europe’s largest economy needs transitional thermal flexibility to backstop an 80% renewables target, insisting low-income African nations skip that step is not climate leadership. It is development deferred.
Third: Does the carbon comparison include full life cycle methane?
It must. Methane leakage materially worsens the climate profile of gas-to-power because methane is a far more potent greenhouse gas than CO₂. If leakage exceeds a few per cent of production, gas loses its advantage over coal on a 20-year timeframe.
But the IEA notes that 40% of fossil methane emissions could be eliminated at no net cost with existing technology. My claim that gas has a lower footprint than coal is conditional on aggressive methane management – eliminating flaring and venting, enforcing measurement under frameworks like the EU Methane Regulation and OGMP 2.0. Without those conditions, the arithmetic fails. But the real choice in most African markets is not between pristine gas and pristine renewables. It is between ageing coal, a growing fleet of unregulated diesel generators, and new fuel-flexible plants that start or transition to gas and convert to hydrogen or ammonia on a contractual schedule. Displacing diesel and coal with well-managed gas in future-fuel-ready engines cuts CO₂, local pollution, and water use now, while building the infrastructure for fuels that eliminate fossil dependence.
The critics are right to demand rigour, full life cycle accounting, methane transparency, and credible timelines. Those are exactly the conditions that make a lean-carbon pathway work. Africa does not seek permission to pollute. It seeks the tools to end energy poverty while peaking emissions early and declining fast. Build engine power plants that run on available fuel today. Mandate their conversion tomorrow. The carbon overdraft stays small. The payback stays fast. And the technology to switch to sustainable fuels is already here.
Louis Strydom is the Director of Growth and Development for Africa and Europe at Wärtsilä Energy
Feature/OPED
#LifeAfterLebaran: 5 WhatsApp Hacks to Stay Close with Family After Eid
You’re back home after mudik (homecoming), the suitcases are unpacked, and the excitement of being with family for Eid already feels like a long time ago. But just because Eid is over doesn’t mean the special connection of being with family has to fade. Here are the best group chat features for beating the post-Raya blues.
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Keep The Vibe Going by Sharing Ramadan Highlights
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Keep the Memories Rolling with Status: Your Status feed doesn’t have to go quiet just because you’re back home. Post the most memorable throwback photos from the Eid reunion and add questions to spark responses like “What was your favourite Raya dish?” Add music and stickers to Status to keep the energy alive.
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Express Yourself with Text Stickers: Turn inside jokes, family slogans, or a favourite Eid quote into a Text Sticker. It’s a quick, personalised way to add some warmth and humour to the group chat.
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Skip the Stock Cards, Use Meta AI for a Personal Touch: Don’t just send a generic “Hi” or “Good morning” in the family chat. Use Meta AI to make your personalised greeting card or quickly transform a single photo into an animated image to send a heartfelt, animated check-in.
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Schedule The Next Reunion
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Plan Your Next Post-Raya Get-Together: The blues often hit when the fun ends. Keep spirits up by creating a new Event in the group chat right away. Add event reminders so everyone doesn’t miss the opportunity to connect.
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Schedule a Call, Don’t Just Say “Call Me”: Carry on the family tradition of staying connected, even when you’re miles apart. Tap + then Schedule a call in the Calls tab to lock in a regular “Post-Raya Check-in” video call. Send a reminder so everyone can join on time.
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Keep the Raya Spirit Alive by Getting Everyone Involved
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Assign yourself a fun “tag” in the family group: Are you the one who always ends up cooking? Or the one who plans the itinerary for family trips? Or the master of GIFs who keeps everyone amused? Use the Member Tag feature in the group to give yourself a witty, funny, or practical role—”Next Event Planner” or “Tech Support Guru,” maybe?. Member tags can be customised for each group you’re in.
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Share a Spontaneous ‘I Miss You’ Video: Did you just see something that reminded you of the reunion? Press and hold the camera icon to record a spontaneous Video Notes message. It’s faster than typing and instantly brings warmth and real-time emotion back into the group.
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Digital Hugs: Making the Long-Distance Moment Count
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Share a Moving Memory: Don’t just send a still photo. Share a Live or Motion Photo to capture the ambient sound and movement of a recent Eid moment. It makes your memories feel more vivid, personal, and real—a perfect antidote to feeling disconnected.
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Your Group Chat Background: Create a vibe with Meta AI: Don’t settle for a plain background for your family group chat. Use Meta AI to generate unique, custom chat wallpapers that reflect something uniquely memorable to your family: be it food, travel or a sport that unites everyone. Every time you open the chat, you’ll feel the warmth, not the distance.
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Make Sure No One Misses Out
No More FOMO: Send the Conversation History: Just added a family member who couldn’t make it to mudik? When adding a new member, you can now send up to 100 recent messages with the Group Message History feature. No need to recap; let them catch up instantly and feel included from the first tap.
Feature/OPED
4 Ways AI is Changing How Nigerians Discover Businesses
By Olumide Balogun
Nigerians are natural explorers. Whether finding the best supplier in Balogun market, hunting down a recipe for party jollof, or looking for the most affordable flight out of Lagos, we are always searching.
Today, human curiosity is expanding, and the way Nigerians express it is evolving. We are speaking to our phones, snapping photos of things we like, and asking incredibly complex questions. For the Nigerian business owner, understanding this shift is a massive opportunity to get discovered by eager customers.
Here are four ways AI is rewriting how Nigerians search, along with simple steps to ensure your business is exactly what they find.
1. Visual Discovery is the New Normal
People are increasingly using their cameras to discover the world around them. Picture someone spotting a brilliant pair of sneakers in traffic and wanting to know exactly where to buy them. Today, shoppers simply take out their phones and search visually.
Tools like Google Lens now process over 25 billion visual searches every single month, and many of these searches are from people looking to make a purchase.
How to adapt: Your product’s visual appeal is paramount. Make sure you upload clear, high-quality images of your products to your website and social media. When a customer snaps a picture of a bag that looks like the one you sell, having great photos ensures your business pops up in their visual search results.
2. Conversations Replace Simple Keywords
Shoppers are asking highly nuanced, conversational questions. They are typing queries like, “Where can I find affordable leather shoes in Ikeja that are open on Sundays and do home delivery?”
To handle these detailed questions, new features like AI Overviews act like a superfast librarian that has read everything on the web. It provides users with a perfectly organised summary and links to dig deeper.
How to adapt: Answer your customers’ questions before they even ask. Create detailed, helpful content on your website and fully update your Google Business Profile. List your opening hours, delivery areas, and unique services clearly. This ensures the technology easily finds your details and recommends your business when a customer asks a highly specific question.
3. Intent Matters More Than Exact Words
Predicting every single word a customer might use to find your product is a huge task for any business owner. Thankfully, modern search technology focuses on the underlying need behind a search.
If someone searches for “how to bring small dogs on flights,” AI understands that the person likely needs to buy an airline-approved pet carrier. The technology looks at the true intent of the shopper.
How to adapt: You no longer need to obsess over guessing exact keywords. By using AI-powered campaigns, you allow the technology to understand your products and match them to the customer’s true needs. Your business will show up for highly relevant searches, bringing you customers who are actively looking for solutions you provide.
4. Smart Assistants Handle the Heavy Lifting
Running a business in Nigeria requires incredible hustle. Managing digital marketing on top of daily operations takes significant time and energy. The next frontier in digital advertising introduces agentic capabilities, which hold a simple promise of delivering better results for your business with much less effort.
The technology now acts as your personalised assistant.
How to adapt: You can simplify your marketing by using the Power Pack of AI-driven campaigns, including Performance Max. You simply provide your business goals, your budget, and your creative assets like photos and videos. The AI automatically finds new, high-value customers across Google Search, YouTube, and the web. It adapts your ads in real time to match exactly what the shopper is looking for, allowing you to focus on running your business.
The language of curiosity is constantly expanding. Nigerians are discovering brands in entirely new ways using cameras, voice notes, and highly specific questions. By understanding these behaviours and embracing helpful AI tools, you can let the technology connect eager customers directly to your digital doorstep.
Olumide Balogun is a Director at Google West Africa
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