CONSUMER SENTIMENT

Nigerian consumers continue to feel the pressure of high prices

By our African Marketing Confederation News Team | 2024

Study finds that 58% of people reported a worsening financial situation over the last six months. Only 21% saw improved household income.

Nigerians, once dubbed the happiest people on earth are not so happy at the moment. According to market research firm Pierrine Consulting, the country’s Happiness Index is at 47%. 

 

This sentiment is being driven by the persistent rise in the cost of living, including increasing petrol pump prices.

Consumers in a Lagos shopping district.

Photo: Joshua Doubek, Wikimedia Commons

The firm’s most recent Consumer Pulse Study for Nigeria finds that people are feeling the pinch, with 58% reporting a worsening financial situation over the last six months, and only 21% seeing any improvement in their household incomes. 

This paints a stark picture of the challenges facing consumers, and [gives] critical insights for brands navigating this environment,” Pierrine comments. It offers the following advice for brands competing in the Nigerian market: 

 

Build trust to win loyalty 

 

In tough economic climates, trust becomes the cornerstone of consumer decision-making. Brands must reinforce their credibility and authenticity by staying consistent and empathetic. Consumers are more inclined to stick with brands they trust, even when their purchasing power is limited. 

 

Be where consumers are 

 

Distribution is everything right now. Whether it’s through e-commerce, social commerce, or physical retail, being available where consumers shop is crucial. Investing in last-mile delivery solutions can make the difference between a brand that’s visible and accessible, and one that consumers simply can’t find. 

 

Tiered pricing and product formats 

 

To ease the strain on shrinking disposable incomes, brands must offer flexible pricing strategies. These include tiered pricing models, affordable SKUs, and multiple product formats to ensure their products remain within reach of all consumers. Offering value doesn’t just mean slashing prices – it’s about providing smart, accessible options that fit consumers’ shifting needs. 

 

“In summary, trust, availability and affordability are the pillars for brands looking to survive and thrive in today’s market,” comments Pierrine Consulting. 

 

“Brands that adapt quickly to the new financial reality of their consumers will not only retain their market position but will also emerge stronger when economic conditions improve.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.