A newly released report has revealed that around 50.1 per cent of Nigerians spend nearly all their monthly earnings on food, underscoring the impact of inflation on household finances. The Nigerian Consumer Outlook Report (NCOR), published for the first time by SEID—a Lagos-based marketing communications firm—also found that rising electricity prices have prompted 18.5 per cent of Nigerian households to switch to solar energy, while 31.7 per cent now rely on self-employment as their main income source.
Drawing insights from over 7,000 respondents across Nigeria’s six geo-political zones, the report offers a comprehensive look into how consumers are adjusting their financial behaviour, including changes in spending priorities, brand loyalty, and overall purchasing patterns, amid mounting economic pressures.
A key finding of the report is that food remains the dominant expenditure for Nigerian households, accounting for half of the average consumer’s income. This highlights the overwhelming weight of basic necessities on family budgets.
The study also sheds light on income inequality across the country. It notes that a majority of Nigerians earn less than N100,000 per month, painting a stark picture of limited earnings and widening financial strain.
Despite attaining higher education, many Nigerians still grapple with underemployment. The report notes that those holding advanced degrees generally earn more than their peers, but often face a shortage of well-paying job opportunities. It adds that individuals with a first degree are more likely to earn between N100,001 and N800,000 monthly, compared to others with lower qualifications.
According to the findings, those with ND/NCE certifications represent the largest proportion of Nigerians earning below N100,000. Meanwhile, individuals with postgraduate qualifications are the dominant group among those earning N800,000 or more.
Interestingly, the report points out that among those earning between N800,000 and N900,000, a significant share has no formal education—more than those who only completed primary school. This, the report suggests, indicates the presence of thriving entrepreneurs and traders operating outside formal employment structures.
The data also highlights a clear shift toward entrepreneurship, with 42.9 per cent of respondents identifying self-employment as their primary source of income.
In examining unemployment trends, the report found that the majority of jobless individuals possess only SSCE qualifications. It further notes a decline in consumer spending on non-essential items, a trend expected to impact sectors such as fashion, travel, luxury dining, premium electronics, and upscale beauty products.
“A growing segment of consumers is investing more in health and wellness, with increased attention to healthy eating and routine medical check-ups. As consumers prioritise essential needs, brands in these discretionary sectors may experience slower sales, especially among middle-income earners adjusting to economic pressures,” the report stated.
Commenting on the importance of the findings, SEID’s Managing Partner, Tubosun Akeju, noted that Nigeria’s consumer landscape has undergone significant transformations in recent years. He pointed to generational and cultural changes, the rise of new technologies, and shifts in government policy as key influences.
Akeju stated, “The average Nigerian consumer today is different from that of about 10 years ago,” adding that policy changes have emphasised the need to deeply understand the evolving consumer base and how people are adapting to current economic realities.
He emphasised that Nigeria holds immense opportunities, but success within its market demands nuanced insights into the distinct behaviors and needs of local consumers.
According to Akeju, the NCOR 2025 report delivers valuable insights and highlights opportunities that can guide brands, investors, and policymakers as they respond to changing market dynamics. “It also provides a unique window into the challenges and untapped opportunities within the market,” he said.
Supporting this view, Afolabi Caxton-Martins, Partner at Dentons ACAS-LAW, described the report as “a timely and well-researched resource that goes beyond presenting statistics.” He added that it effectively “captures the lived realities of Nigerians and how they are adapting to the country’s constantly evolving economic environment.”
Caxton-Martins concluded that the report “outlines shifting spending priorities and emerging consumer behaviours,” offering clear patterns that stakeholders—whether investors, business leaders or policymakers—can act on.
