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Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Boyedex: 1:30pm On Aug 05, 2014 |
Nigeria’s retail and wholesale trade industry has the potential to grow by 7.1% per year, and by 2030 could be the largest contributor to the country’s GDP, according to recent report by McKinsey Global Institute. Sales of packaged food and beverages are expected to grow by 6.8% a year, contributing around 85% of the growth in consumer goods. The report, Nigeria’s renewal: Delivering inclusive growth in Africa’s largest economy, estimates that demand for consumer goods could more than triple by 2030. The largest economy in Africa is seeing a rising consumer class, creating a notable opportunity for manufacturers and retailers of fast-moving consumer goods such as food, beverages and personal and health products. Currently consumption is estimated at US$388bn a year but is expected to rise to $1.4tr in 2030, with 35m households earning over $7,500 a year. “Based on data from other economies on how consumption changes with rising incomes, we see demand in Nigeria poised to accelerate in such categories as fruit juices,” illustrates the report. “Capturing emerging consumer demand, however, will require smart choices about where, when, and how to enter Nigerian markets. It will also require specific capabilities that international companies especially may need to develop.” One strategy for consumer facing companies in Nigeria is to adopt a city and regional approach, as opposed to a nationwide approach where distinct differences in culture, demographics and wealth exist. While Lagos, with an estimate of 15m residents, may be the go-to city for companies targeting consumers, McKinsey suggests three regional clusters of cities that together produce sizable populations to rival Lagos. “Companies playing in all three of these clusters could target 20% more households earning above $7,500 than in Lagos,” notes the research. A six city cluster around the Niger Delta in the southeast Port Harcourt, Warri, Benin City, Aba, Enugu and Onitsha make up the six city southeast cluster. Its proximity to oil wells has led the region to be a hub of activity for oil companies and foreign investment . According to the report, total GDP in this cluster alone is $63bn, which is a close rival to Lagos’s GDP of $68bn, despite having far fewer households. Both Port Harcourt and Aba have considerably higher consumption per capita than Lagos. Port Harcourt, followed by Benin City, Onitsha and Aba have the largest populations within the cluster. Companies looking to target the luxury segment might want to especially consider Port Harcourt, the capital of Rivers State, which has the highest consumption per capita in the country ($6,843 in 2013). The city has one of the largest consuming middle classes in Nigeria with household incomes between $20,000 and $70,000 a year. It has access to two of the country’s busier ports and is home to the Port Harcourt Airport. Ibadan, Ogbomosho and Ilorin, just north of Lagos These three cities are within close proximity to Lagos. Ibadan (the capital of Oyo State) is the second largest city after Lagos, and has a fast- growing consumer market. While Lagos has over four times the number of households as Ibadan, consumption per capita of Ibadan in 2013 was $4,562, rivalling Lagos’s $4,710. Ibadan also has a large emerging consumer class with annual household incomes of between $7,500 and $20,000, and one of the larger consuming middle classes in the country with incomes between $20,000 and $70,000 a year. According to a recent African Development Bank (AfDB) report, Tracking Africa’s Progress in Figures, Ibadan is one of the top 10 fastest growing cities in Africa. Northern corridor cluster of Kano, Zaria and Kaduna This cluster holds potential for consumer businesses looking for sizable populations in northern Nigeria. Kano is the fourth largest city in Nigeria, and Kaduna the seventh biggest. This year, South African retailer Shoprite launched its first outlet in Kano, while Massmart opened a Game store just before June. Despite the potential security risk posed by Islamic militants in the region, Massmart’s Africa director Mark Turner said at the Reuters Africa Summit in April: “I always want to be bold enough to say, you can’t be in Nigeria without being in Kano.” |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Boyedex: 1:33pm On Aug 05, 2014 |
Port Harcourt
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Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Boyedex: 1:45pm On Aug 05, 2014 |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Boyedex: 1:49pm On Aug 05, 2014 |
kano
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Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by atlwireles: 1:58pm On Aug 05, 2014 |
Map of cluster
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Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by atlwireles: 2:02pm On Aug 05, 2014 |
Good economic analysis of consumer spending, around the country and in years to come. You have to give up for the portharcourt. The saying, that PH smells of money has been proven here again. 2 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Rikidony(m): 2:02pm On Aug 05, 2014 |
Nigeria is a gold mined waiting to be tap if u are late. you will have your self to be blame, ma own cluster CALABAR -IKOT EKPENE-EKET-UYO This cities have a growing middle class with motorable roads not forgeting the peace and serenity of the area. GENERAL ELECTRIC (GE) Have just begun the construction of their manufacturing plant in Calabar. |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by abagoro(m): 2:03pm On Aug 05, 2014 |
Boyedex: That Port Harcourt has by far the highest consumption per capita in Nigeria is very indisputable, but the fact that Aba is higher than Lagos comes as a surprise to me. I believe that the under-estimated population of Aba or over-estimated population of Lagos is the reason for this miscalculation. |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Boyedex: 2:06pm On Aug 05, 2014 |
ibadan |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by GPA5: 2:06pm On Aug 05, 2014 |
Ibadan (the capital of Oyo State) is the second largest city after Lagos, and has a fast- growing consumer market. While Lagos has over four times the number of households as Ibadan, consumption per capita of Ibadan in 2013 was $4,562, rivalling Lagos’s $4,710. Ibadan also has a large emerging consumer class with annual household incomes of between $7,500 and $20,000, and one of the larger consuming middle classes in the country with incomes between $20,000 and $70,000 a year. According to a recent African Development Bank (AfDB) report, Tracking Africa’s Progress in Figures, Ibadan is one of the top 10 fastest growing cities in Africa. THIS IS A SCAM. HOW CAN STATE WITH BROWN ROOFS BE AMONG TOP FASTEST GROWING CITIES IN AFRICA? ANAMBRA, ENUGU SHUOLD REPLACE IBADAN. THERE'S NO BROWN ROOFS, NO SLUM IN ENUGU, ANAMBRA 8 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by chinolization: 2:09pm On Aug 05, 2014 |
Below are the most important and economically viable southern cities. Investors haven! Boyedex: 6 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AlJarzirah: 2:13pm On Aug 05, 2014 |
Boyedex: Nigeria’s retail and wholesale trade industry has theI don't believe that Port Harcourt, Benin or even Onitsha is more populous than Enugu. Enugu is one of the most thickly populated cities in Nigeria. 1 Like |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:14pm On Aug 05, 2014 |
GPA5: Ibadan (the capital of Oyo State) is the Do Aba, Enugu and Onitsha make sense to you? But, the fact that they added Ogbomosho to Ibadan axis shows that particular analysis for Ibadan is flawed. BTW, where is your Ogun and Osogbo? 9 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by atlwireles: 2:18pm On Aug 05, 2014 |
AlJarzirah: What you believe is irrelevant. Where is your data to back it up? 2 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:19pm On Aug 05, 2014 |
Both Port Harcourt and Aba have considerablyCan anyone interpret this for me? It means that an average person in PH and Aba lives a more comfortable life than an average person in Lagos. Keep in mind this is not about DANGOTE or ORJI KALU or Otedola. It is about average persons, of which 99% of Nigerians are 7 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Nobody: 2:19pm On Aug 05, 2014 |
GPA5: Ibadan (the capital of Oyo State) is the It goes to show that progress is less about the colour of your roof, and more about the quality of your governance. As far as governance and progress is concerned, the South West is leading (not by words, not by tribalism, but by ACTION). *Edited: After writing this, I realised the sarcasm in your comment . 6 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:20pm On Aug 05, 2014 |
AlJarzirah: Don't know about Benin, but PH is more populated than Onitsha or Enugu. Onitsha may be more dense though. 1 Like |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by abagoro(m): 2:23pm On Aug 05, 2014 |
AlJarzirah: Where and how did you arrive at this conclusion? Use your google satelite pictures to view Nigeria. The most populated rural area which starts North of Owerri in Imo State and ends at Awka in Anambra State has same population density as Enugu city. I'm talking of places like Amucha, Nkwerre, Urualla, Igboukwu, Ekwulobia, Nnewi, Orlu, Ihiala, Orsumoghu, Amaifeke, Dikenafai, Uga, Ozubula, Nnobi, Oraifite etc. The most populous Igbo cities are simply Onitsha and Aba. Port-Harcourt is about twice their population. |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:24pm On Aug 05, 2014 |
jesuslovesme123: You are a joker. Of the clusters only 3 cities are in SW: Lagos, Ibadan and Ogbomosho. Of those, Lagos' wealth cannot be said to be truly Yoruba by any unbiased Nigerian because a significant % of it belongs to Igbos, Northerners and other Nigerians. That of Ibadan is Yoruba, and please tell me what is in Ogbomosho (mention one company). I believe it was included just to be able o extend the axis to Ilorin 1 Like |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by atlwireles: 2:24pm On Aug 05, 2014 |
AkinEgba: I don't know why any body wants to compare portharcourt to Enugu or Onitsha. |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by chinolization: 2:24pm On Aug 05, 2014 |
Where are the South-Waste leading? You are right, they are leading in mud and rust! Do you want photo-speak? At least to show where average people live in the both region! jesuslovesme123: 8 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:26pm On Aug 05, 2014 |
abagoro: You mean twice their individual sizes or their combined size? |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Nobody: 2:26pm On Aug 05, 2014 |
AkinEgba: Wake up. 1 Like |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by GPA5: 2:27pm On Aug 05, 2014 |
jesuslovesme123: MY SISTER, THIS IS HOW THE Igbos WILL BE PUT IN SHAME. WE DON'T NEED TO FLOOD NAIRALAND WITH PICTURES TO SHOWCASE........... As far as governance and progress is concerned, the South West is leading (not by words, not by tribalism, but by ACTION). -I LIKE THIS 9 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Rikidony(m): 2:28pm On Aug 05, 2014 |
GPA5: Ibadan (the capital of Oyo State) is theDude it such a pity that i have to school you. what you mean is since there are brown roofs in ibadan it means the people are poor. if we go with such terms then the UK might not be regarded as a developed nation cos apart from London the aren't many skyscrappers in other cities but the live a comfortable life 2 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by atlwireles: 2:29pm On Aug 05, 2014 |
One question I have though, what is called a Lagos cluster? Half of Ogun state is already considered the suburbs of lagos. Does this analysis include such areas 1 Like |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by GPA5: 2:29pm On Aug 05, 2014 |
chinolization: Where are the South-Waste leading? SOUTH WESTERNERS DON'T NEED TO TURN TO PHOTOGRAPHER BEFORE THE TRUTH ABOUT THE REGION IS BEING KNOWN I HOPE YOU READ THE ARTICLE 6 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by AkinEgba: 2:29pm On Aug 05, 2014 |
Port Harcourt, Warri, Benin City, Aba, Enugu and Onitsha This will be a very powerful economic block if well harnessed. Benin appears to be an outlier though, as it is geographically quite detached from the rest of these cities 2 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by abagoro(m): 2:30pm On Aug 05, 2014 |
AkinEgba: Twice there individual population. Port-Harcourt should be above 2million while Aba and Onitsha are roughly above a million each. |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by chinolization: 2:31pm On Aug 05, 2014 |
Abagworo na beg I dey beg you oo..before we go enter another battle for here! Leave Anambra and its cities alone. You can discuss the subject without calling Anambra out. Discuss other states in the subject. I hope you do not want this thread to be derailed into what you will regret. Remove your focus from Anambra and focus your discussion on other states on the write-up; Lagos, Rivers, Abia and Enugu states. I will not warn you again.. 4 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by Nobody: 2:31pm On Aug 05, 2014 |
chinolization: Where are the South-Waste leading? South Westerners prefer intelligent debate to empty, tribalistic rhetoric. Therefore, you should understand why you and I have nothing more to discuss. 14 Likes |
Re: Consumer Potential: Three Nigerian City Clusters To Compete With Lagos by GPA5: 2:31pm On Aug 05, 2014 |
Rikidony: SCHOOL YOURSELF. THIS IS HOW THE Igbos WILL BE PUT TO SHAME. GO AND READ THE ARTICLE ABOVE 2 Likes |
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