ISAAC ASABOR
The year 2024 was no doubt pivotal for Nigeria’s consumer market, particularly when analysed from the perspective of how events and policies redefined how businesses operated and how consumers made decisions.
From inflationary pressures to the surge in e-commerce adoption, the year showed resilience, innovation, and significant challenges.
A detailed look at the major events that shaped Nigeria’s consumer landscape, supplemented by expert voices and consumer insights shows that consumer market in Nigeria in the year 2024 was unarguably kaleidoscopic.
Without a doubt, inflation dominated the narrative of Nigeria’s economy in 2024, with food prices and energy costs that reached unprecedented levels.
According to the National Bureau of Statistics (NBS), inflation peaked at 27.1% in July, driven by the removal of fuel subsidies and the devaluation of the naira. Essential commodities like rice, cooking oil, and bread became luxuries for many households.
Chidi Nwosu, an economist and consumer behavior analyst, said, “The high inflation drastically eroded the purchasing power of the average Nigerian. People were buying less, switching to substitutes, or outrightly cutting down on non-essential spending. It was a time of survival rather than growth for most consumers.”
A Lagos-based rice retailer, Iya Bisi, shared her experience: “Before, I used to sell a bag of rice in a week.In 2024, even until now in January 2025, it takes over three weeks because my customers can’t afford it anymore. People come, price goods, and walk away. It’s heartbreaking.”
There is no denying the fact that President Bola Ahmed Tinubu’s decision to remove fuel subsidies in May 2023 sparked widespread protests, but also forced consumers and businesses to adapt. Transportation costs skyrocketed, leading to ripple effects on goods and services.
“The removal of subsidies was inevitable, but the timing and lack of proper palliatives made it worse for the masses,” noted Efe Ighodalo, a policy analyst.
“However, it’s also driving innovation, especially in the renewable energy sector, as people seek alternatives.”
Companies like Rensource Energy and Lumos reported a 40% increase in demand for solar-powered solutions, signaling a shift toward sustainable energy. Meanwhile, carpooling and ride-sharing platforms gained traction as commuters sought to split transportation costs.
However, not all sectors adapted smoothly. Small-scale businesses relying heavily on transportation faced dwindling profits due to rising operational costs. A logistics operator in Lagos lamented, “Our delivery charges have doubled, and customers are canceling orders. It has since May 2023 remained a tough market.”
Another defining trend in 2024 was the rapid adoption of digital payments. With the Central Bank of Nigeria (CBN) doubling down on its cashless policy, many Nigerians turned to mobile money, USSD payments, and fintech platforms.
Bayo Olusegun, CEO of a Lagos-based fintech startup, commented, “The cashless drive has been transformative. We’ve onboarded over 500,000 new users this year alone. It’s fostering financial inclusion and bringing the unbanked into the financial ecosystem.”
However, challenges persist. Many rural areas lack the infrastructure for digital transactions, and cyber fraud cases have increased. Adaora Chukwu, a businesswoman in Enugu, lamented,
“Digital payments are great, but the network issues are frustrating. Sometimes, transactions fail, and it’s difficult to recover lost funds.”
The push for digitalization also exposed gaps in consumer education. Many users, particularly in semi-urban areas, struggled to navigate new technologies, leading to financial mistakes and scams. Experts emphasized the need for targeted education campaigns to bridge this gap.
e-commerce experienced remarkable growth in 2024, fueled by a growing middle class and increased internet penetration. Platforms like Jumia, Konga, and TradeDepot reported higher sales volumes, especially during promotional campaigns like Black Friday and Independence Day sales.
Adewale Ogunlana, a marketing executive stated, “The consumer market is evolving. People want convenience and competitive pricing, which e-commerce offers. However, trust and logistics remain areas we’re constantly improving.”
The rise of social commerce on platforms like Instagram and WhatsApp also played a significant role. Young entrepreneurs leveraged these channels to sell everything from fashion items to locally made skincare products, creating a vibrant online marketplace.
Despite its growth, e-commerce faced challenges in logistics and consumer trust. Late deliveries, damaged goods, and payment disputes persisted as major pain points. Enhancing customer experience remains a top priority for online retailers.
The Federal Competition and Consumer Protection Commission (FCCPC) stepped up its activities in 2024, cracking down on unfair trade practices and ensuring consumer rights were upheld. High-profile cases included fines imposed on telecom companies for poor network quality and actions against food producers for misleading labels.
Since assuming the role of Executive Chairman at the Federal Competition and Consumer Protection Commission (FCCPC), Tunji Bello has been making commendable strides in fostering a fair and competitive consumer market in Nigeria. Under his leadership, the FCCPC has intensified efforts to regulate anti-competitive practices, ensure consumer rights protection, and promote transparency in market dealings.
His proactive measures, including enforcement actions against erring businesses and initiatives to empower consumers through awareness campaigns, have significantly enhanced trust in Nigeria’s consumer market landscape.
This activism has encouraged better practices among companies, but enforcement gaps remain. Mary Eze, a consumer in Abuja, noted, “It’s good to see the FCCPC taking action, but there are still many cases of exploitation that go unnoticed.”
Moreover, the FCCPC’s efforts shed light on the need for stronger collaboration with other regulatory bodies to address systemic issues in industries such as healthcare and telecommunications.
2024 also marked a resurgence in the patronage of local brands, partly due to the high cost of imported goods. From food and beverages to fashion, Nigerian brands have gained prominence.
“People are beginning to appreciate locally made products more,” said Chukwuemeka Nnaji, a branding expert. “This shift is not just about affordability; it’s also about pride in Nigerian creativity and innovation.”
Brands like Zaron Cosmetics, Dangote Foods, and Aso-Oke-inspired fashion houses have thrived, demonstrating that local can indeed be premium. This trend has also spurred a rise in entrepreneurial ventures, as more Nigerians explore opportunities to produce and market homegrown goods.
In response to the economic hardships, the government introduced palliatives such as cash transfers and food distribution programs. However, these measures received mixed reviews.
“The palliatives are a drop in the ocean,” said activist Aisha Yesufu. “What we need is systemic change, not temporary fixes. The government must address the root causes of our economic problems.”
Market woman Iya Wale added, “Shebi dem talk say cassava, ewa, and agbado go cheap? But we no fit buy dem for market. These palliatives no reach us.”
The implementation of palliatives also faced criticisms over transparency and distribution. Allegations of favoritism and corruption underscored the need for more efficient systems to ensure resources reach the intended beneficiaries.
Despite the challenges, Nigerian consumers have shown resilience and adaptability. From switching to local products to embracing digital platforms, they are finding ways to cope.
“Last year has taught us to be resourceful,” said Temitope Akinyele, a young professional in Ibadan. “We must have through the experiences gained in 2024 learned to prioritise, budget, and make smarter choices.”
Consumers were also observed to be more vocal as they leveraged social media to hold businesses accountable. This newfound assertiveness, no doubt, shaped a more consumer-driven market environment.
The events of 2024 have left an indelible mark on Nigeria’s consumer market. While the challenges are daunting, they also present opportunities for innovation, advocacy, and growth. As businesses and policymakers navigate this evolving landscape, the focus must remain on empowering consumers and fostering a fair, inclusive economy.
According Mr. Jerry Idiagbonya, a consumer enthusiast, “Given the troubles consumers faced in 2024, the Nigerian government must take deliberate steps to engender a friendly market environment. Policies that stabilise inflation, enhance the availability of essential goods, and ensure fair pricing will significantly ease the burden on consumers. Long-term economic reforms focusing on diversification and infrastructure development are essential to foster sustainable growth.
He added: “Regulatory bodies like the Federal Competition and Consumer Protection Commission (FCCPC) should also strengthen their efforts in overseeing the consumer market. By collaborating with other agencies and leveraging technology, the FCCPC can enhance its monitoring capabilities, address consumer grievances more efficiently, and hold erring businesses accountable. An empowered consumer base is pivotal for driving economic resilience and innovation in Nigeria”.
However, on the other hand, regarding Nigerian consumer behavior, particularly on key trends and business opportunities to be expected in 2025, Elizabeth Efelobari, an analyst at Reportaftrique, wrote that Nigerian consumer behavior is undergoing rapid transformation due to economic challenges, technological advancements, and social dynamics. Businesses must adapt to these evolving trends to remain competitive.
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