Five Things to Know About the Nigerian Consumer
With a $510 billion economy growing at 7.1% annually, retail and wholesale trade represents majority of the growth potential. Over 40 million Nigerian households are in the consuming class and earn an income of more than $7,500 annually. Consuming class or consuming households refers to an individual or household with an annual income of more than $3,600 or have an expenditure of $10 per day. At about 4% annual growth rate, more Nigerian households are migrating to the urban cities, creating waves of new consumers, expanding markets for all kinds of businesses and ultimately driving growth in the retail and wholesale trade. Some of the fastest growth is estimated to occur within the consuming middle class with an annual income between $20,000 and $70,000 and consuming upper class with an income greater than $70,000.
To harness the market opportunities offered by Nigeria’s growing consumer population, key industry players – manufacturers and retailers alike need to understand the peculiarities in consumer preferences and behaviour across various product/commodity categories.
A Consumer Insights Report by Africa Consumer Intelligence Centre (ACIC) revealed some valuable observations about the clothing and apparel commodity market in Nigeria as shown in the chart below.
Nigeria’s Shopper Segments
Source: African Consumer Insights 2012
