Nigeria’s GDP growth decelerated in 2022 amid global headwinds, including elevated commodity prices and soaring inflation resulting from Russia’s invasion of Ukraine. The IMF’s GDP growth projection of 3.2% for 2023 is in recognition of the measures Nigeria has undertaken to boost oil production. Nevertheless, the country’s medium-term economic plan, the National Development Plan (NDP) 202
Interview:Ebele Enunwa What are the biggest challenges for modern retail chains to reach meaningful scale in Nigeria? EBELE ENUNWA: The biggest challenge to reaching scale is a lack of quality retail space due to limited investment by property developers. We have had to build our own retail spaces to address the lack of supply, rendering it difficult to scale since it entails operating beyond…
Traditional, informal retailers account for around 70% of African consumers’ food, beverage and personal care purchases. Nigeria had around 600,000 smallscale retailers, primarily grocers, accounting for 97% of national retail transactions according to a June 2022 report by international consultancy Boston Consulting Group. While modern malls populated by international brands have gained traction…
With a population of over 218.5m as of July 2022, Nigeria boasts Africa’s largest consumer market, with retail being a key contributor to GDP second only to oil. The presence of formal retail outlets has undergone notable expansion since the turn of the century, and more space is set to come on-line in 2023. However, informal retail establishments still dominate the sector. Issues such as inflation,…
The second-largest contributor to GDP, the retail sector has long been a driver of growth and a bellwether of Nigeria’s economic trajectory. Several challenges have impeded the sector from fully leveraging the potential of its large consumer market, such as inflation, volatility in the exchange rate and a vulnerability to external price fluctuations. However, there is room for optimism, highlighted…
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Nigeria is the biggest economy in Africa, with GDP of $432.3bn in 2020, according to the World Bank, and home to one of the largest proven oil reserves on the continent. The country has developed an investment-friendly business climate over two decades of civilian rule and in the nearly 60 years since independence, boosted by its oil and gas wealth, and the entrepreneurial spirit of its young popu
Home to the largest consumer market on the continent, Nigeria offers attractive opportunities for investors and retailers that apply growth strategies tailored to specific consumer preferences and take into account distribution challenges. While macroeconomic headwinds and currency volatility have weighed on consumer spending power in recent years – particularly since the drop in international oil…
The Nigerian retail market remains fragmented and dependent on informal sales channels such as neighbourhood markets and kiosks, which account for 90% of retail activity. As in most emerging markets, the bulk of household expenditure in Nigeria is directed towards food. But with traditional in-person shopping limited by lockdowns, and many households facing tighter budgets, the sector contracted by…
Interview:Juliet Anammah To what extent did the Covid-19 pandemic influence e-commerce in Nigeria? JULIET ANAMMAH: Before the pandemic e-commerce retailers thought they were in a business of convenience by providing consumers and sellers with a platform where they could interact – which is convenient if you are not able to go to the store. After the start of the pandemic e-commerce became…