Nigeria’s consumer market to hit $454 billion by 2025-NSE

The Nigerian Stock Exchange, NSE, says Nigeria’s consumer market which was valued at $377 billion as far back as 2013, is expected to reach about $454 billion by 2025,  a statement obtained from NSE twitter handle this morning, Friday November 29, by Fresh Angle International, reveals.

The statement noted: “This growth is driven by 3 major factors- population, urbanization and increased spending power. The country’s estimated population of over 200million, with 72% under the age of 30, presents a huge potential for future investment in consumption activity.

“The manufacturing sector remains a critical segment and plays an integral role in the development and advancement of the Nigerian economy.   

“With a nominal GDP expansion of about 40% recorded in Q3 of 2019, which is much higher than its performance in corresponding period of 2018, the manufacturing sector has contributed significantly to the nation’s economic diversification strategy.

According to the National Bureau of Statistics, manufacturing activity accounted for about 12% of GDP in Q3-2019 compared to 10% of GDP in the same period last year.

Of specific mention is the Food, Beverage and Tobacco subsector which accounts for 41% of overall manufacturing activity and grew by 2.98% in Q3 2019 versus 1.22% in Q2 2019.

Although these numbers may reflect steady growth in this sector, the reality and headwinds faced by operators in the sector are quite daunting.

Over the last few years, Nigeria’s economic landscape has been particularly challenging for the manufacturing sector and particularly the consumer goods industry. 

Despite the implementation of different industrial policies and industrialization strategies, the sector has experienced policy reforms and directives that have negatively impacted on the performance of the sector’s value chain.

"In 2019, the NSE Consumer Goods Index in particular has recorded a significantly higher negative return of (29.01%) YTD, compared to the NSE Industrial Index returning -13.26% and the Main Board Index returning -22.48%." – Oscar Onyema.

It is not all doom and gloom as the industry has witnessed some progress as well. To address challenges relating to poor corporate performance, many consumer goods and industrial firms have looked inwards for local alternatives for raw materials with specific focus on backward integration and also exploring different product lines.

Although imports still remain the dominant source of inputs into food, beverages and tobacco in Nigeria, there have been several policies to promote backward integration in food processing.”

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