Six years after launching on the eve of a global pandemic, Healthgarde International is restructuring its supply chain in response to the same force reshaping much of Nigeria’s consumer health market: foreign exchange volatility.
The wellness and supplements company, founded in February 2020, has begun moving from full import dependence to partial local manufacturing following regulatory approval of its production facility by the National Agency for Food and Drug Administration and Control (NAFDAC).
“We are slowly moving from everything being imported to partially being imported,” said Lovelyn Bassey, chief operating officer. “We have things that are being made locally and manufactured locally as well.”
The transition comes as import-reliant firms face rising landed costs driven by naira depreciation and foreign exchange scarcity. In the supplements segment, where most finished goods and key inputs are dollar-priced currency, instability has squeezed margins and disrupted planning cycles.
“It’s not a cut-and-paste model from Europe or America,” Bassey said. “We make sure that what we offer fits African conditions.”
Healthgarde entered the market weeks before COVID-19 lockdowns upended trade flows and consumer behaviour. Border closures and supply bottlenecks exposed vulnerabilities in businesses that were dependent on imported stock, while subsequent recessions and exchange rate swings compounded operating risks.
Founder and chief executive officer Nneka Nwarueze said the company’s early years were defined by economic shocks. “We survived COVID, recession, and exchange rate challenges,” she said. “Our competitors have closed, but we are still here.”
While partial localisation does not eliminate foreign exchange exposure, raw materials are still imported, it offers greater control over production timelines and inventory planning. In a high-cost environment, even incremental cost stability can determine viability.
Manufacturers across consumer-facing sectors are increasingly exploring hybrid models that combine imported inputs with local processing to reduce direct FX exposure.
Healthgarde says its facility is approved by NAFDAC, a point management emphasises as regulatory scrutiny in the wellness industry increases.
“Our products are approved before they go into the market,” Nwarueze said, arguing that tighter oversight is necessary in a sector often criticised for substandard or unregistered products.
Healthgarde’s business model is built on a commission-based distribution network. The company estimates it has between 6,000 and 8,000 consultants nationwide, roughly 90 percent of whom are women.
In an economy where formal job creation has lagged population growth, such network structures have become alternative income channels.
“Nigeria is an entrepreneurial economy,” Bassey said. “If you wait for a formal job, you’ll wait a lot. So, we provide an alternate business opportunity where you can earn a living for yourself and your family.”
At the 6th anniversary event, several distributors described the platform as a financial buffer. One distributor said the income supported her children’s education after her household experienced a job loss. Another credited the business with supplementing family income during periods of economic strain.
“You can see people who are earning their daily living through the network,” Nwarueze said.
Network marketing models depend heavily on product credibility and pricing stability, both of which are affected by macroeconomic conditions. Rising costs can dampen sales volumes, while inconsistent supply can disrupt distributor earnings.
As Healthgarde expands local production, management is calling for improved access to affordable financing and more favourable trade arrangements for importing raw materials. “Funding at low interest will help manufacturers,” Bassey said, noting that many inputs are still sourced internationally.
The company says its next phase is to deepen its presence in West Africa and increase participation in trade exhibitions as part of its next growth phase.
