Green Procurement and Government Policy as Catalysts for Enhancing Organizational Performance in Nigeria’s Fast-Moving Consumer Goods Sector
DOI:
https://doi.org/10.61978/commercium.v4i1.1131Keywords:
Sustainable Supply Chain, FMCG, Reverse Logistics, Stakeholder Satisfaction, Green Packaging, Organisational PerformanceAbstract
This paper examines how green procurement and government policy affect the performance of Fast-Moving Consumer Goods (FMCG) companies in Nigeria. While sustainability is gaining global relevance, limited empirical evidence addresses how these drivers influence firm outcomes in Nigeria. The study investigates the extent to which green procurement and government policy shape organisational performance in the FMCG sector. A cross-sectional survey was conducted with 357 supply chain personnel across some listed FMCG firms. Data were analysed using ordinary least squares regression to establish the impacts of the variables. The regression results show that sustainable manufacturing (β = 0.192, p < 0.001) had the strongest positive effect on performance, followed by reverse logistics (β = 0.164, p < 0.001), Government policy (β = 0.133, p = 0.001), and green packaging (β = 0.117, p = 0.001). The model explained 41.2% of performance variation. Firms need to embed green procurement by strengthening supplier evaluation, investing in capacity-building, and ensuring transparent sourcing. Policymakers should enforce regulations consistently and introduce fiscal incentives to promote sustainability, while stakeholders collaborate to align practices with long-term sectoral performance goals.
References
Abera Baisa, G., & Matellini, D. B. (2024). Sustainable supply chain practices (SSCP) and sustainability performance in the manufacturing sector of emerging and developing economies (EDCs. Proceedings of the International Conference on Industrial Engineering and Operations Management. DOI: https://doi.org/10.46254/AN14.20240066
Abuzawida, H., Abdelhadi, A., Eljack, G., & Abubakr, N. (2023). Green supply chain management practices and sustainable performance in construction firms. Journal of Cleaner Production, 385, 135763. https://doi.org/10.1016/j.jclepro.2022.135763 DOI: https://doi.org/10.1016/j.jclepro.2022.135763
Abuzawida, S. S., Alzubi, A. B., & Iyiola, K. (2023). Sustainable supply chain practices: An empirical investigation from the manufacturing industry. Sustainability, 15(19), 14395. https://doi.org/10.3390/su151914395 DOI: https://doi.org/10.3390/su151914395
Adebiyi, S. O., Adediran, A. S., Shodiya, A. O., & Olusola, T. (2021). Supply chain management practices and manufacturing firms’ performance: Professionals’ experience in Nigeria. Economics and Culture, 18(2), 28–40. DOI: https://doi.org/10.2478/jec-2021-0012
Ajike, E. O., Nwaulune, J. C., Akande, F. I., & Bamidele, A. G. (2025). The effect of green logistics practices on the environmental sustainability of selected fast-moving consumer goods companies in Nigeria. In Sustainability marketing in emerging economies: Conceptual and empirical perspectives (pp. 279–312). Springer Nature Switzerland. DOI: https://doi.org/10.1007/978-3-031-83464-6_11
Akpan, D. C. (2023). Green accounting practices and shareholders’ value of listed consumer goods companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 11(6), 1–23. DOI: https://doi.org/10.37745/ejaafr.2013/vol11n6123
Anokye, K. (2025). Reviewing the efficacy of eco-design strategies for sustainable packaging in Ghana: Challenges, opportunities, and the way forward. Materials Circular Economy, 7(1), 25. https://doi.org/10.1007/s42824-025-00185-6 DOI: https://doi.org/10.1007/s42824-025-00185-6
Babalola, H. B. (2023). Linking green supply chain management practices to organizational performance: Conceptual review. International Journal of Supply Chain Management, 12(1), 427–437.
Caiado, R. G. G., Scavarda, L. F., Vidal, G., Mattos Nascimento, D. L., & Garza-Reyes, J. A. (2025). A taxonomy of critical factors towards sustainable operations and supply chain management 4.0 in developing countries. Operations Management Research, 18(2), 744–767. DOI: https://doi.org/10.1007/s12063-023-00430-8
Celestin, M., Kumar, A. D., & Vasuki, M. (2024). The role of public-private partnerships in EAC supply chain development. International Journal of Multidisciplinary Research and Modern Education, 10, 28–38.
Chaudhuri, A., Subramanian, N., & Dora, M. (2022). Circular economy and digital capabilities of SMEs for providing value to customers: Combined resource-based view and ambidexterity perspective. Journal of Business Research, 142, 32–44. DOI: https://doi.org/10.1016/j.jbusres.2021.12.039
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101 DOI: https://doi.org/10.2307/2095101
Efobi, U., Tanankem, B., Orkoh, E., Atata, S., Akinyemi, O., & Beecroft, I. (2019). Environmental pollution policy of small businesses in Nigeria and Ghana: Extent and impact. Environmental Science and Pollution Research, 26(3), 2882–2897. https://doi.org/10.1007/s11356-018-3817-x DOI: https://doi.org/10.1007/s11356-018-3817-x
Freeman, R. E. (1984). Strategic management: A stakeholder approach.
Igwe, A. N., Eyo-Udo, N. L., Toromade, A. S., & Tosin, T. (2024). Policy implications and economic incentives for sustainable supply chain practices in the food and FMCG sectors. Comprehensive Research and Reviews Journal, 2(1), 23–36. https://doi.org/10.57219/crrj.2024.2.1.0027 DOI: https://doi.org/10.57219/crrj.2024.2.1.0027
Jalili, S., Amerzadeh, M., Moosavi, S., Keshavarz, A., Zaboli, R., Tabatabaee, S. S., & Kalhor, R. (2024). Relationship between strategic orientation and performance: The mediating role of green supply chain management for better performance. International Journal of Human Rights in Healthcare, 17(2), 186–195. DOI: https://doi.org/10.1108/IJHRH-03-2022-0018
Jawaad, M., Hasan, T., Amir, A., & Imam, H. (2024). Exploring the impact of green human resource management on firm sustainable performance: Roles of green supply chain management and firm size. Journal of Management & Organization, 30(3), 673–695. DOI: https://doi.org/10.1017/jmo.2022.68
Le, T., Tran, N. P., & Hoque, A. (2025). Enhancing green innovation through national intellectual capital: The role of institutional quality in Asia–Pacific economies. Economies, 13(5), 126. https://doi.org/10.3390/economies13050126 DOI: https://doi.org/10.3390/economies13050126
Nestlé Nigeria Plc. (2022). Annual report and financial statements. https://www.nestle-cwa.com/en/investors
Okeke, A., & Rahim, L. J. (2024). Unearthing the pressures: An assessment of the sustainability focus and supply chain management practices adopted by global oil and gas titans. Energy & Environment. https://doi.org/10.1177/0958305X241256292 DOI: https://doi.org/10.1177/0958305X241256292
Organisation Economics. (2016). Organisation for Economic Co-operation and Development. OECD Publishing. https://doi.org/10.1787/9789264257344-en DOI: https://doi.org/10.1787/9789264257344-en
Sabet, M. (2025). Exploring biodegradable polymer composites for sustainable packaging: A review on properties, manufacturing techniques, and environmental impacts. Iranian Polymer Journal, 34(1), 123–142. https://doi.org/10.1007/s13726-025-01045-2 DOI: https://doi.org/10.1007/s13726-024-01365-y
Schinckus, C., Akbari, M., & Clarke, S. (2019). Corporate social responsibility in sustainable supply chain management: An econo-bibliometric perspective. Theoretical Economics Letters, 9(1), 247–270. https://doi.org/10.4236/tel.2019.91020 DOI: https://doi.org/10.4236/tel.2019.91020
Sethi, A. K., & Malviya, B. (2005). Green packaging and purchase intention: An analysis of consumer perception and loyalty. International Journal of Environmental Sciences, 11(7s), 1234–1244. DOI: https://doi.org/10.64252/hpbzxx71
Shaikh, A. R., Qazi, A., Ali, I., & Appolloni, A. (2024). Analyzing the barriers to sustainable procurement in an emerging economy: An interpretive structural modeling approach. International Journal of Emerging Markets, 19(11), 4204–4225. DOI: https://doi.org/10.1108/IJOEM-07-2022-1082
Sharma, E., & Singla, J. (2021). Sustainable supply chain practices and organizational performance: The mediating role of functional constructs. Operations and Supply Chain Management: An International Journal, 14(4), 456–466. DOI: https://doi.org/10.31387/oscm0470316
Srivastava, P. (2024). The nexus between sustainable supply chain practices and environmental pollution reduction in emerging markets. Library of Progress: Library Science, Information Technology & Computer.
Sujanto, R. Y., Kao, S. L., & Yang, M. F. (2024). Multicriteria Assessment of Green Logistics in Taiwan’s Maritime Freight Transport: Green Packaging and Green Transportation as Driving Aspects. TransNav, 18(1), 35–44. https://doi.org/10.12716/1001.18.01.02 DOI: https://doi.org/10.12716/1001.18.01.02
Tanko, F., Kpazo, G. A., & Ope-Ojo, O. E. (2024). Environmental sustainability in Nigerian manufacturing industries: A life cycle assessment of production processes. International Journal of Research and Scientific Innovation, 11(7), 1065–1073. https://doi.org/10.51244/IJRSI.2024.1107084 DOI: https://doi.org/10.51244/IJRSI.2024.1107084
Unilever Nigeria Plc. (2022). Annual report and financial statements. https://www.unilevernigeria.com/investors
United Nations Environment Programme. (2022). Sustainable consumption and production policies: Progress and outlook in Africa. https://www.unep.org/resources/report/sustainable-consumption-and-production-policies-africa
Wandosell, G., Parra-Meroño, M. C., Alcayde, A., & Baños, R. (2021). Green packaging from consumer and business perspectives. Sustainability, 13(3), 1356. https://doi.org/10.3390/su13031356 DOI: https://doi.org/10.3390/su13031356
