Category: Business

How Soaring Costs Are Reshaping the Nigerian Consumer: From Imported Luxury to Local Necessity Nigerians are turning to locally-made products in greater numbers as the rising cost of foreign goods—fueled by currency depreciation and import pressure—forces households to rethink spending habits. What was once a matter of preference has become a matter of necessity, triggering a quiet but profound transformation in consumer behavior. This evolving trend was the focal point of a recent episode of Drinks and Mics, a Nairametrics podcast hosted by Ugodre Obi-Chukwu, alongside co-hosts Arnold Dublin-Green and Tunji Andrews. The episode featured Oler Oladele, founder of the MoneyWit Club, who provided insights into how Nigerian families are adapting to the country’s tougher economic realities. “When we talk about macroeconomic numbers, it’s easy to forget the people behind the data,” Oler said. “Beyond GDP or forex depreciation, the real question is: how are people actually living?” The Supermarket Tells the Story According to Oler, the evidence is clear—from the supermarket aisle to the family dinner table, Nigerians are swapping imported goods for local alternatives. “How many people still casually ship things from America like they used to? Or go shopping in Dubai? Those days are mostly gone,” she observed. This isn’t just anecdotal. Reports show a significant drop in import volumes, with analysts linking it to a recent balance of payments surplus driven not by export growth, but by falling imports—a sign of shifting consumption patterns. Economic Reforms and Rising Inflation The shift comes in the wake of sweeping economic reforms introduced by President Bola Tinubu’s administration after he took office in May 2023. These include the removal of fuel subsidies, the unification of Nigeria’s exchange rates, and a partial phase-out of electricity subsidies. While these reforms have been praised for improving policy transparency and market efficiency, they’ve also sparked record-high inflation, which reached 34.8% in early 2025—its highest in two decades. Soaring food and energy prices are hitting households the hardest. “Devaluation tends to scare off traders and drive prices up, but for households, the bigger pain point is petrol,” Oler noted. “If global oil prices drop but the naira weakens, it creates a double bind.” The Age of Substitution Despite inflationary pressures, consumers are learning to adapt—and that adaptation is taking the edge off imported inflation. “People just aren’t buying imported versions anymore,” said co-host Tunji Andrews. He recalled a recent moment: “I was at the supermarket buying cereal for my kids. I picked a nicely packaged brand, and someone said, ‘That’s imported.’ I didn’t even know we had a Nigerian version. That’s how normalized substitution has become.” The Economics of Humility What’s emerging from this shift isn’t just resilience—it’s a reordering of priorities. The Nigerian consumer is not just brand-switching; they’re re-evaluating what matters most. “It’s not just new cars people can’t afford anymore,” Oler said. “Even buying kitchen towels has changed. I sat with some mothers recently who told me their nannies now help decide which brands to buy—because of price. The economy has humbled a lot of people.” She stressed that for many Nigerian families, especially those shopping weekly for essentials, the impact is deeply felt—even if the elite remain somewhat insulated. “Unless you stop eating out and start shopping like most people do, you might not notice how much has changed,” she said. Navigating Around the Weak Naira Host Ugodre Obi-Chukwu posed a key question: Is the exchange rate still the biggest threat to ordinary Nigerians? “Not in the same way,” Oler replied. “People have adjusted. Consumption patterns have shifted. They’re navigating around the forex issue.” And that may be the most telling aspect of Nigeria’s current economic transition—not just in policy or trade balances, but in the lived experiences of its people. “Exactly. It’s no longer theoretical,” Oler concluded. “People feel the impact every day. And that’s the real story—how Nigerians are reshaping how they live, consume, and survive.