The growing size and strength of its consuming class is one of the most important under-appreciated changes in Nigeria.

New figures released by consulting firm McKinsey Global Institute (MGI), estimating Nigeria’s consumer market to be worth $1.4 trillion by 2030, clearly shows the huge impact rising consumption will have on the nation’s economy.

In 2013, an estimated 8 million households had incomes of more than $7,500 per year – the threshold for what MGI the considers “emerging consumers,” with sufficient income to meet all basic necessities and have money left over to start buying more and better food as well as health and education services.

By 2030, MGI estimates that about 35 million households (an estimated 160m people) could be living above that threshold.

Nigeria’s gross domestic product (GDP) per capita has tripled between 2004 and 2010, moving from $644 to $2,700, according to National Bureau of Statistics (NBS) data.

The latest (2012) Household Consumption Expenditure numbers for Nigeria’s 170 million people is estimated at N42.5 trillion ($260bn) by the NBS.

The figure is larger than the previously un-rebased GDP of $262 billion (N41.6trn), and about half of rebased GDP of N80.3 trillion, throwing more light into how consumer spending is powering Nigeria’s growth.

Household Consumption E0xpenditure (HCE), often the largest component when measuring GDP by expenditure, was equivalent to 58.9 percent of the rebased GDP of 70.07 trillion in 2012, according to BusinessDay’s analysis of the NBS data.

While more developed markets have data points like consumer confidence gauges and chain store sales data to gauge consumer health, the absence of such data in Nigeria means that proxies such as recharge card, cement and beer sales are often used to gauge consumer sentiment.

Nigerians collectively spent N449.7 billion ($2.77bn) a month, on recharge cards, according to the NBS with the major beneficiaries being the four telecoms firms (MTN, GLO, AIRTEL, and ETISALAT).

Nigerian Breweries reported in March that gross revenues for full year 2013, rose by 6.3 percent to N268.61 billion as against N252.67 in the comparable period of 2012.

Gross profits increased by 8.7 percent to N136.47 billion.

Total monthly national household expenditure on soap and washing powder came to N149.2 billion, according to the NBS.

Unilever, Procter & Gamble, and PZ are some listed names set to benefit from the growth of this sector.

The fact that most Nigerians pay in full and in cash for items they purchase such as cars, houses, big screen televisions, phones and fridges, means that there is room for consumer spending to expand exponentially, if banks can help the consumer leverage their budgets through credit cards or credit financing.

Consumer spending is also being boosted by Nigerians in the Diaspora who often maintain close links with home when they are away.

Remittances to Nigeria approached $21 billion last year, according to World Bank data.

http://businessdayonline.com/2014/07/nigerias-rising-consumer-class/

Consumer spending is also being boosted by Nigerians in the Diaspora who often maintain close links with home when they are away.

Mainly by southerners and especially Igbos

^^^^ is there any punishment, for making a comment, without bringing tribe into it.

atlwireles: ^^^^ is there any punishment, for making a comment, without bringing tribe into it.

It's factual not tribal

Germannig:

It's factual not tribal.

You're tribal not factual.

Rossikki:

You're tribal not factual.

From your mouth, of course

With all due respect to you

We can't conclude base on the fact that we do not have a good data base to judge.


Any way GEJ is still trying.

Germannig:

Mainly by southerners and especially Igbos

That should have shown in VAT receipts.
The free spenders in this country are the yorubas and this is obvious in virtually every facet of life.
From the sheer number of markets (virtually every town is a market town) to the more obvious direction of migration,direction of goods coming from the north(go to ojo in Ibadan
After that, you will take the Niger delta (most especially the port harcourt ,warri axis) which are heavily fed by oil and oil related industry. They also spend like crazy .beer parlour opens at 8 a.m.
Even agbero,militants dey wear designer, buy 4K TV for Shoprite ,build house and buy car.

Its a really good development

If not for the distractions,the only way for nigeria is up.Sometimes we forget that a self and world proclaimed financial genius,okonjo is part of the crew.

Apart from islamism,tribalism and all the obvious ills,what are the factors distracting the good policies in nigeria?Nepotism,favouritism and amanmadutism,i guess.