Posted on Apr 17, 2020
Nigeria has a growing population in excess of 190 Million people with more than half between the ages of 24-35 . The United Nations estimates that Nigeria will become the 3rd most populous country in the world by the year 2050. With the rapid rate of urbanization and an increasing youthful population willing to explore new products and brands, Nigeria appears attractive to manufacturers of fast moving consumer goods (“FMCG”). Consumer concentration in Nigeria has made Nigerian consumers the biggest single subset of African consumers . Nigeria, South Africa and Egypt account for more than 50% of Africa’s total consumer spending. Presently, retail and wholesale account for 16% of Nigeria’s Gross Domestic Product (“GDP”).
Thus, the Nigerian consumer market is the investment destination for FMCG companies including manufacturers of home and personal care products (“HPC”). It is quite oxymoronic for FMCG companies that in the presence of growing population, households and consumers, these consumers are not getting richer. In the 2018 and 2019 financial years, established FMCG companies with significant market share experience little or marginal growth in revenue whilst smaller FMCG companies who are able to supply FMCGs at the lowest price points enjoyed significant growth in market share and revenue.
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