Citation:

Fajembimo, A.I., Akpa, V.O. "Firm Resilience and Profitability of Selected Fast-Moving Consumer Goods Companies in Lagos State, Nigeria" International Research Journal of Economics and Management Studies, Vol. 4, No. 5, pp. 30-40, 2025.

Abstract:

The fast-moving consumer goods (FMCG) sector in Nigeria operates in an economically volatile environment characterized by inflation, fluctuating exchange rates, regulatory inconsistencies, and changing consumer preferences. These challenges pose significant threats to long-term profitability, often reflected in low customer retention and unstable revenue growth. Despite the acknowledged importance of firm resilience in navigating turbulent markets, limited empirical evidence exists on how specific dimensions of resilience contribute to sustainability outcomes in the Nigerian FMCG context. This study thus examines the effect of firm resilience and profitability of selected fast-moving consumer goods companies in Lagos state, Nigeria. The study adopted a survey research design to investigate the effect of firm resilience on organizational sustainability in selected FMCG companies in Lagos State, Nigeria. A target population of 16,785 employees was identified across selected companies. Using the Krejcie and Morgan sample size determination table, 488 respondents were selected. Data were collected using a structured and validated questionnaire, out of which 379 responses were completed and deemed usable, representing a 77.7% response rate. The reliability of the instrument was established using Cronbach’s alpha, and the data were analyzed using both descriptive and inferential statistical methods. The findings revealed that firm resilience significantly had a significant effect on profitability (Adj. R² = 0.388, F(5, 373) = 38.009, p < 0.05). Based on the results, the study concludes that enhancing firm resilience significantly contributes to sustainable business profitability. It is recommended that FMCG firms in Nigeria adopt resilience-oriented strategies, including investment in innovation, proactive risk management, flexible operations, and policies that strengthen customer engagement and financial stability for long-term competitiveness.

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Keywords:

Firm Resilience, Financial Resilience, Risk Management, Market Responsiveness, Operational Flexibility, Innovation Capability, Profitability.