Nigeria's consumer goods review

Nigeria's economy contracted by 1.5% in 2016, with outputs in the fourth quarter of the year shrinking by 1.3%. Esili Eigbe, the Director and Head of West Africa Research at Exotix, recently joined CNBC Africa to analyze what this means for consumer spending in the country. The discussion highlighted various challenges faced by the Nigerian consumer market, including high inflation, soaring energy costs, currency instability, and policy uncertainty. Despite a slight improvement in GDP quarter-on-quarter, key sectors such as manufacturing, commerce, and industry continued to show weakness from a consumer perspective. According to Esili Eigbe, these trends are likely to persist amid ongoing uncertainties and high inflation rates. The volatility of the Naira exchange rate further complicates the situation, making it crucial for policymakers to implement effective measures to stimulate consumer spending and drive economic growth. While the Vice President remains optimistic about the economy's recovery, experts warn that significant policy reforms and structural changes are needed to bolster consumer confidence and enhance business stability. The discussion also touched upon the need for a more radical FX policy regime, including potential currency floating, to address the country's economic challenges. Additionally, fiscal reforms, government asset sales, job creation initiatives, and improvements in the ease of doing business were identified as crucial steps to boost government revenues and support long-term economic growth. The conversation underscored the urgent need for comprehensive and proactive measures to address Nigeria's economic vulnerabilities and create a conducive environment for sustained consumer spending and investment.