SEID: Consumers' price-sensitivity paves way for less indigenous brands

Nigeria's consumer landscape is undergoing significant shifts, driven by changing economic realities and evolving consumer preferences. According to the 2025 SEID Nigerian Consumer Outlook report, consumers have become increasingly price-sensitive, creating opportunities for indigenous brands that offer affordability and accessibility. The report highlights key trends such as the prioritization of essentials like food, transportation, education, and electricity, as well as the emergence of self-employment and entrepreneurship as viable options for many Nigerians. Tubosun Akeju, Managing Partner at SEID, discussed these findings in a recent interview with CNBC Africa, shedding light on the factors influencing consumer behavior in the country. One of the key findings of the report is the growing importance of food expenditure in the average Nigerian's budget. With consumers spending a significant portion of their income on food, businesses are urged to focus on addressing consumer needs for affordability, convenience, and fair deals. Akeju pointed out that consumer purchasing patterns and decision-making processes are evolving, creating pockets of opportunities in the highly fragmented Nigerian market. He highlighted a case where two supermarkets in close proximity experienced contrasting foot traffic trends, emphasizing the importance of understanding consumer preferences and behaviors. Additionally, the report delves into the impact of current economic realities on consumer behavior across income groups. Akeju noted that essentials like food, transportation, education, and electricity dominate consumer spending, leaving limited options for discretionary expenses. As disposable income dwindles across socioeconomic classes, consumers are increasingly seeking options that cater to their specific needs and preferences. This shift in consumer behavior underscores the importance of businesses adapting to meet evolving consumer demands. In terms of data collection, SEID employed a comprehensive approach, gathering insights from over 7,000 Nigerians across the country's 36 states. By utilizing both digital and manual methods, the research aimed to provide a nuanced understanding of consumer behavior across different socioeconomic segments. Akeju acknowledged the challenges of data collection in Nigeria, emphasizing the need for accurate and context-specific insights to inform decision-making and strategy development. Moreover, the report highlights the increasing prevalence of self-employment in Nigeria, with nearly half of the population engaged in entrepreneurial activities. Akeju pointed out that factors such as the rise of side hustles and informal sector participation contribute to this trend. While there is a growing appetite for entrepreneurship, Akeju emphasized the importance of enabling aspiring entrepreneurs to scale their businesses effectively. By addressing barriers to growth and promoting skill development, policymakers can support the transition from trading to production, fostering sustainable economic development. Looking ahead, international investors are poised to play a crucial role in Nigeria's consumer market transformation. As the country undergoes rapid changes in consumer behavior and preferences, attracting foreign investment and expertise will be essential for driving innovation and growth. The report underscores the need for stakeholders, including policymakers, businesses, and investors, to collaborate in navigating the evolving consumer landscape and seizing emerging opportunities. In conclusion, the 2025 SEID Nigerian Consumer Outlook report provides valuable insights into the dynamics shaping consumer behavior in Nigeria. With a focus on affordability, accessibility, and consumer preferences, businesses can position themselves to capitalize on the changing consumer landscape and drive sustainable growth and development.