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The fight for diaper market share has only one winner.

There has been a paradigm shift from the use of cloth diapers to disposable diapers among nursing mothers in the country.



In recent times there has been a paradigm shift from the use of cloth diapers to disposable diapers among nursing mothers in the country.

This is as a result of hygiene concerns and the convenience it brings for the modern woman, especially working mothers. With this occurrence, the diaper segment in Nigeria’s FMCG industry has become a major profit-making business.

Currently, the Nigerian diaper market has over 15 brands, with each jostling for market share across the country. While some have emerged top-of-mind brands with a national spread, some are confined to regional play. The stiff competition has also forced some to shut down parts of their operations and re-strategize.

For our product review this week, we take a look at how different diaper brands are adapting and competing for the leadership position, once enjoyed by the pioneer brand, in a race for market share and profitability.

A market where Pampers once reigned supreme

Pampers is the first diaper brand ever produced and marketed in the country. The product made its entry into the Nigerian market in 2000, and over the years, the brand has gone through various transformations and brand extensions.

For over a decade, the brand controlled the most market share in the country. But, the entry of new brands, led by Molfix, into the Nigerian market has brought new dynamics into the race for market share.

In response to the threat posed by the new entrants, and in a bid to increase patronage, Pampers manufacturer, Procter & Gamble (P&G), added Pampers Baby Dry and Pampers Premium to the product portfolio. The company also commissioned a $300 million industrial plant in Agbara, Ogun State.

In an unexpected turn of events, Nigerians woke up to the news that P&G had decided to shut down its plant in Agbara. While many attributed the closure to the inability of the company to cope with the growing competition in the market, management of the company said that it was part of its restructuring exercise in its Nigerian operations. An assurance was given that it would continue to operate in the country, albeit from its Ibadan plant only.


However, a senior staff of the company confirmed to Nairametrics that from next year, Pampers will be imported into the country, while the Ibadan plant, which is majorly for detergent production, remains unaffected by the new restructuring.

Many also accused the company of not doing enough in investing in the local production of its raw materials as the company still depends largely on importation for them. This has exposed the company to fluctuations in the foreign exchange market.

These macroeconomic challenges and lapses in its product segments have created a gap which has been readily filled by the new entrants.

Molfix in the market mix

Molfix, a diaper brand produced by Hayat Kimya Nigeria Ltd, is designed to give “babies full protection and keeps their skins dry and healthy around the clock”.

Hayat Kimya, which started producing Molfix baby diapers in Turkey since 1987, presently has production plants in Algeria, Iran, and Egypt.

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In an effort to boost its market penetration, manufacturers of the Molfix brand adopted a lower pricing regime which makes it affordable for the struggling middle-class group. It also has a strong distribution channel throughout all retail chains in both rural and urban areas, which makes it easily accessible.

To be able to challenge the Pampers brand, Molfix invested $100 million in constructing an ultra-modern diaper/tissue factory in Agbara Industrial Layout, Ogun State.

In terms of price strategy, Molfix is doing well in offering lower prices for quality products, while investing in backward integration to cut costs. With the company generating its own power, the cost of production is lower and there is more control over pricing.

Huggies in the market mix

Another big player in the market is the Huggies brand from the stables of Kimberly-Clark, an American multinational personal care company. The brand sells intrinsic value, driving a unique proposition that goes beyond form and functionality.

For makers of Huggies, functionality is the basics, while the “feeling” is the product. Huggies sells “self-esteem” to moms as a product and because of this, those who use Huggies have so much loyalty and affinity for the brand and they are always proud to show off the diapers at every opportunity.

The brand does not seem interested in controlling the market share, as its target is a segment of the market where it applies a strategic profiling aimed at middle-upper class, business-professional moms.

Coronation ads

The Huggies brand is focused on gaining the wallet share, rather than market share. The concept is “having 100 percent of few pockets rather than having one percent of many households”.

…and the rest

The performance of other smaller brands in the country is hampered by the strong competition from the leading brands such as Molfix, Pampers, and Huggies, and weak distribution channels. Also, brands such as Dr. Browns, and Sunfree experience frequent stock-outs, as their availability is solely dependent on the vagaries of importation policies.

Promotions and price wars

Manufacturers of diapers in the country have taken a robust approach in an attempt to maintain market share and boost sales in a harsh economic climate like Nigeria, with each making efforts to secure higher patronage. It is not uncommon for them to offer promotional discounts to distributors to help boost sales.

In the first half of the year, Hayat Kimya, makers of Molfix, offered distributors a 10% discount across all products and an extra 3% when they exceeded a certain sales level. P&G initially ran a ‘buy 15 get two free’ promotion, which was later lowered to ‘buy 20 bundles get one free’. This resulted in further brand discounts offered mid-year: 4.5% discount by P&G and 9% by Hayat.


Brand owners are also entering into special partnership agreements with hospitals, selling diapers to them at lower prices.

What consumers are saying

Mrs. Esther Udoh, a nursing mother who spoke with Nairametrics, noted that the diaper market is already saturated but the known brands are still holding on to their shares of the market. She noted that Pampers cannot be ignored as its name stands as a colossus in the market, and will do so for more years to come. To her, the brand would have been a clear winner if not for the entries of Molfix and Huggies.

In a product review done on our social media platforms, respondents mentioned factors that were considered when choosing diaper brands. Many stated that the reaction of a baby’s skin to these products was the most important factor when it came to choosing a brand; some cause nasty rashes and make babies uncomfortable.

Product affordability was another factor to be considered when deciding on a diaper brand.

The verdict

In a poll conducted by Nairametrics, Pampers brand got 38% of the votes, Molfix got 36%, while Huggies got 26%.

No doubt, the new entrants are aiming for the leadership role in the market and are doing everything possible to challenge the dominance of Pampers.

For this week’s battle, Pampers is the winner. However, for a leader to protect its position against challengers, it requires innovation, price cuts, expansion of its distribution channel, and intense promotional efforts. The manufacturers of Pampers have to double down on their efforts or lose patronage to competition.



Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Review of the V bank version 3.0: Nigeria’s first intelligent digital banking app

V Bank has upgraded its application to offer new services to its users and improve operational efficiency.



Review of the V bank version 3.0: Nigeria's first intelligent Digital banking App

Nigeria’s fully digital bank, V Bank, a product of VFD microfinance bank Launched March 8, 2020, has upgraded its application to offer new services to its users and improve operational efficiency.

The new VBank app will enable users to securely access their accounts to automate recurring bills, manage multiple cards from different banks, send and receive funds using a unique QR code, track spending, generate virtual cards for online payments, buy airtime and data, fix deposits and make free transfers, all within a sleek, responsive and easy-to-use interface.

This review explains how to download and use the new V bank version 3.0 app. During the review, we took into consideration the design, user experience, usability, new features of the App, and how it functions well.

The device used for the review: Apple iPhone Xsmax

Getting started with V bank

These are the following information required for successfully registering as a user on the V bank app:

  • Sign Up by downloading the V bank app and creating your account
  • Input your BVN-linked phone number on the app and date of birth
  • Take a photo with a white background to Validate your identity
  • Verify your identity by inputting your BVN number on the app or use your existing bank account.
  • Finally, a signature for validation and a four-digit pin password.

What’s New on the V bank App?

The new app, version 3.0 comes with some new cool features that are rather unique. Let’s talk about all the new features and our experience while setting up and performing different transactions.

New V bank Interface

After you log in or sign up, the first thing you see is the V bank dashboard and it is pretty cool. The UI and interactions are super neat. The use of colours and components under the analytics section is simple and clean. This is perfect!!



New V bank interface

Send and receive money using Proximity payments and QR payment features

V bank users can now send or receive money easily through the proximity or QR payment features. You can pay or receive money from a nearby V bank app user using the proximity payment feature. Click on the proximity payment icon and start searching for a nearby user to pay while receiving payment wait for the user to start searching.

Recipients using the proximity payment feature must have their phones at close range.


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Another interesting way you can make a transfer easily is by scanning the QR code of the user receiving the payment.

To receive a payment, each user must generate a QR code which will be used to scan while making a transfer.

The QR payment feature is actually unique as it enables users to make or receive payments from near and far locations. The only requirement is to have the QR code to scan for payment.

QR Code

Intelligent Mobile Top-up feature

We always want to send airtime or data to people as a surprise and most times we have the mobile number but don’t know the network provider. The new V bank app comes with an intelligent mobile top-up feature that detects each network provider automatically with just the phone number. You don’t need to call the recipient asking for his network provider, the app does that for you.

Coronation ads
Airtime top-up

Cardless Withdrawal

It is not always convenient and secure to carry a wallet or purse with ATM cards. You can make a careless withdrawal without your ATM cards using the V bank app by generating a code. The app also helps you in locating the nearest ATM locations for your careless withdrawal. This feature is convenient and more secure.

Transfer funds to multiple recipients at once

Imagine how tired Don Jazzy will feel after paying each follower that won his giveaway separately. It actually is exhausting but the V bank eliminates that stress with the new multiple beneficiary feature. You can send money with just one transaction to up to 5 people.

Multiple transfer feature

Track your spending

The Analytics dashboard shows a beautiful interface with total inflow (payment made) and total outflow (Amount withdraw or debited). This gives you a clear pictorial overview of your income and expenses.


Under categories, users can track their spending such as online/POS, utility, mobile, family. work, lifestyle, food, utility, transport, and more on a monthly basis. This feature enables you to Identify bad spending habits and make adjustments to improve your finances.

Overview of income flow, expenses, and budget

Manage Multiple cards from different accounts

One of the App’s latest features is managing multiple cards from different accounts.

We requested a new virtual card which cost 500 Naira ($1) for a new one and it expires in three years. You can also request and activate V bank physical card using the app. The new feature enables users to add ATM cards from different bank accounts on the app and all the debit cards can be managed using the V bank app under the cards section.

Managing your cards section

Automate Recurring Transactions

The new feature allows users to automate recurring transactions weekly, monthly, or on a yearly basis depending on the type of service requested. You can easily schedule payment for your DSTV bill on a monthly basis.

Other features you would be interested in

  • Make free transfers i.e there are no hidden transfer/ transaction fees.
  • You can open a target savings account, fixed deposit account, or a joint account using the V bank App.
  • Request a loan
  • Chat with a customer care representative using the app
  • Earn money when you invite your friends
  • Become a Veelager and earn profit

Final thoughts

The new version of V bank is well designed for both new and existing users of digital banking. The app enables users to easily navigate and perform seamless transactions. The design interface and user experience make it a great option for anyone looking for a perfect digital bank.

With the rise of technology, everything is possible with just a few clicks on the mobile phone. In the next version, we expect to see a voice-activated virtual assistant feature on the app.

The new V bank 3.0 app comes with innovative and sophisticated digital banking features which will help V bank users manage their money effectively, spend wisely and perform transactions easily with guaranteed security.

VBank 3.0 is available as V by VFD on the Play Store and Apple store. For more information, visit

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Buy what? Dangote vs BUA Cement

Dangote Cement has a market capitalization of N3.65 trillion, while BUA posts a N2.49 trillion capitalization, but does size win?



I want to review the performance of the largest quoted companies in Nigeria.

On the Nigerian Stock Exchange, they don’t come any bigger than Dangote Cement (Dangote) and BUA Cement (BUA). Only MTNN stands with both cement companies in terms of market capitalization. Dangote and BUA are both blue-chip companies, in the same sector and both enjoy federal import protection, they also both serve a local market with huge demand for cement.

Which is a better investment? Let us assume I have N100,000.00 (One Hundred Thousand Naira,) which should I buy? Let us review both stocks with FY 2020 results they posted. For consistency, I am going to use my trading view terminal numbers.

READ: Dangote Cement joins MTN in the trillion-naira club, as 2020 revenue surpassed N1 trillion

Market Capitalization

First, we talk about capitalization, (Market cap is the number of shares issued x market value of shares ). Dangote Cement has a market capitalization of N3.65 trillion, while BUA posts a N2.49 trillion capitalization. Does size win? Dangote is bigger? Not yet!

Market Price

With N100,000 I can buy about 465 shares of Dangote at N215 a share and 1,360 shares of BUA at N73.50 per share. Is BUA cheaper? do we have a winner? Not quite. Let us dig deeper.

Dangote Cement posted a Net Income figure of N276 billion, if we divide this earning by the number of issued shares which is 17 billion, we get an Earnings Per Share (EPS) of N16.14, so every share of Dangote Cement earns (not pays) the investors N16. Similarly, the Earning Per Share of BUA is N2.0

READ: BUA Cement loses N162 billion in market value in a week

Thus when I buy Dangote Cement N215 per share, I am buying 16 times the earnings of Dangote. We can simplify this by simply comparing the price I pay per share of Dangote to the EPS of Dangote (Price to Earnings Ratio), thus I invest my cash of N215 to buy 16 times the earnings of Dangote, thus the Price to Earnings Ratio of Dangote is 13.31 (P/E). Using the same calculation, the price for each earnings of BUA (the P.E.) is 35.38. This means even though I am paying more cash for each share of Dangote, I am paying less to buy the earnings of Dangote, thus Dangote is cheaper than BUA.

So our first milestone is reached, we have used the Net Income, Market Price, and Number of Issued shared to get the Earnings Per Share, we have then determined what amount of earnings we are buying to determine which stock is at a bargain.

READ: Oba Otudeko’s stakes in Firstbank and Honeywell are worth over N10 billion

What else?

Let us look at the earnings that will be paid in cash. Remember, Earnings, is just the Net Income of Dangote, we as equity holders have the opportunity to share in any portion of the Net Income.

Dangote in 2020 paid out from earnings N272.69 billion as dividends, this translates to about N16 per share or in terms of returns 7.44%. We get this Dividend Yield return by comparing the dividend paid to the market price per share (D/P). BUA also in 2020 paid out N59.26 billion as dividends from earnings, this translates to a dividend yield of 2.81%.

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So, if I invested N100,000 in shares of Dangote Cement, I would earn a cash return of 7.44%, if I did the same with BUA I would earn a cash return of 2.81%.

READ: Jumia: In search of the elusive break-even sales

Let us go a bit deeper…

When you buy a stock, you are buying into the earnings and cash flow. Dangote Cement in 2020 earned N276 billion and paid N272 billion as dividends meaning they retained about N3 billion for that FY while generating over N248b in Free Cash Flow. Similarly, BUA earned a net N71.52 billion, paid out N59 billion in dividends, retained N19 billion but posted a negative Free Cash Flow of (N95.49 billion). Should BUA cement have simply used that cash to finance working capital rather than paying it as dividends? Perhaps. Let us speak more of Cash flow.

Cash retained is cash not paid to you the investor. You have to ask how well your company is utilizing that cash retained. Should it all be paid out as dividends? Or retained in the company to fund expansion and growth?

READ: Three things Nigerians can learn from Warren Buffet’s latest letter

Look at it this way, if Federal Government Bonds were offering a Yield of 15% and we see that Dangote is offering a yield of 7.44%, then as shareholders you should demand that Dangote pays more cash to you to allow you to invest in FGN bonds because you get a higher return (at lower risk). The point is any company retaining cash or paying cash at a lower yield than the market is hurting the investors, who are missing the opportunity of investing higher elsewhere.

Let us score both company managers by how well they have managed the revenues and capital of the companies


 Return on Assets %Return on Equity %Return on Invested Capital %EBITA Margin %Net Margin %Debt to AssetsLong Term Debt to Assets
Dangote Cement14.6231.2126.9244.0424.310.240.08
BUA Cement11.1519.1215.3541.8732.030.360.23
FY 2020

Across the board, the management of Dangote Cement has done a better job when compared to BUA Cement in managing the assets of the company. Dangote Return on invested capital is higher with a much lower recourse to debt and of course a higher FCF number.

Overall, on Earning, Returns and Efficiency, it appears Dangote Cement posts better fundamentals…



There is a wealth of information that should help decide whether you should buy a stock or not and how long you can hold on to it. Our recommendation is based on the information we currently have and is wholly the opinion of the writer

This article is an investment guide and as such you should conduct extra analysis before deciding whether to buy, sell or hold a stock. The decision to buy, sell or hold a stock is solely yours.

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