Despite a significant increase in the value of Nigeria’s Fast-Moving Consumer Goods (FMCG) market, driven primarily by rising prices, consumer spending is projected to remain weak throughout 2025. This is according to the H2 Nigeria State of the Nation 2024 report released by NielsenIQ.
The report highlights the ongoing economic challenges faced by Nigerian consumers, including high inflation rates, the depreciation of the local currency (Naira), and persistent supply chain disruptions.
While the total FMCG market experienced a 53.9 percent increase in value during the fourth quarter of 2024, this growth is largely attributed to price increases across key product segments. The beverage, dairy, and personal care categories showed strong value and volume sales performance. However, this growth does not reflect an increase in consumer purchasing power but rather the impact of inflation.
Nigeria’s inflation rate reached a concerning 34.8 percent in December 2024, driven by the continued rise in consumer prices. Food inflation, a crucial indicator of household spending, hit a staggering 39.84 percent year-on-year. This indicates that consumers are paying significantly more for the same goods, eroding their ability to purchase other items.
The NielsenIQ report suggests that until these economic challenges are addressed, consumer spending will likely remain subdued, despite the nominal growth in the FMCG market’s value.
