Nigerian paytechs battle for tighter consumer wallets
- How will Nigeria’s rising inflation and a weakening naira alter consumer spending habits?
- 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
Invest with Confidence, Operate with Precision.
Access economic and industry data & insight for global organisations.
Trusted by leading global organisations
