Key questions this article answers:
  1. How will Nigeria’s rising inflation and a weakening naira alter consumer spending habits?
  2. How can Paytechs stay resilient amid cautious consumer spending?

Nigerian consumer's wallets are under pressure. The triple impact of a petrol subsidy removal, sky-high inflation (27.33% in October) and a battered currency are piling the pressure. Between October 2022 and 2023, petrol prices tripled while the naira's official rate shed 50% of its value to trade at ₦887/$ from ₦445/$ (5 Dec 2022-7 Dec 2023). 

To be clear, pricing pressures aren’t new to Nigerian consumers. Real per capita disposable incomes declined 15% between 2017-2023, from ₦366,453 to ₦313,008.

 

 

Still, consumers aren’t out of the woods yet. Nigeria’s inflation climbed to an 18-year high in October 2023 of 27.3%, and Stears’ inflation forecasts indicate the storm isn’t behind us. With the festive season approaching, our forecast indicates Nigeria’s inflation will continue its ascent, nearing but not exceeding the 30% mark by December. Judging by the tragically thin queues at popular retail outlets this Black Friday, consumers are tightening their purse