Nigeria’s consumer market came under increasing pressure in 2024 as household spending recorded one of its steepest declines in recent years, reflecting the impact of rising inflation, weakening purchasing power and persistent economic challenges across the country.
Data from the National Bureau of Statistics (NBS) showed that real household consumption expenditure contracted significantly in the first half of 2024 despite growth in nominal spending. The figures indicate that Nigerian households purchased fewer goods and services in real terms as soaring prices continued to erode disposable incomes and reshape consumption patterns nationwide.
Brandspur Banking News Desk reports that the sharp decline in consumer spending has accelerated the shift towards smaller and more affordable product sizes, reinforcing the growth of Nigeria’s sachet economy. Industry analysts say consumers are increasingly prioritising essential purchases while cutting back on discretionary spending amid mounting cost-of-living pressures.
The NBS data revealed that real household consumption expenditure declined by 42.28 per cent year-on-year in the first quarter of 2024 before worsening to a 61.18 per cent contraction in the second quarter. The trend highlights the extent to which inflationary pressures have weakened household demand even as nominal expenditure figures continued to rise.
Economists note that household consumption remains a critical driver of economic activity, making the prolonged contraction a key concern for businesses, manufacturers and retailers. Lower consumer demand has affected sales volumes across multiple sectors, forcing companies to adjust pricing strategies, product offerings and distribution models to align with changing consumer behaviour.
The latest figures underscore the growing strain on Nigerian households and the broader economy, with analysts warning that a sustained recovery in consumer spending will depend on improvements in inflation, income growth and overall economic stability.
