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.”

Port Harcourt

source www.howwemadeitinafrica.com/consumer-potential-three-nigerian-city-clusters-to-compete-with-lagos/41840/

kano

Map of cluster

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.

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.

Boyedex:
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.

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.

ibadan

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

Below are the most important and economically viable southern cities. Investors haven!

Boyedex:
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 .

Boyedex: 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.”

I 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.

GPA5: 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 BROWN ROOFS NO SLUM IN ENUGU, ANAMBRA

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?

AlJarzirah:
I 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.

What you believe is irrelevant. Where is your data to back it up?

Both Port Harcourt and Aba have considerably
higher consumption per capita than Lagos.

Can 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

GPA5: 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 BROWN ROOFS NO SLUM IN ENUGU, ANAMBRA

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 .

AlJarzirah:
I 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.

Don't know about Benin, but PH is more populated than Onitsha or Enugu. Onitsha may be more dense though.

AlJarzirah:
I 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.

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.

jesuslovesme123:

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).

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

AkinEgba:

Don't know about Benin, but PH is more populated than Onitsha and Enugu. Onitsha may be more dense though.

I don't know why any body wants to compare portharcourt to Enugu or Onitsha.

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:
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 .

abagoro:

Port-Harcourt is about twice their population.

You mean twice their individual sizes or their combined size?

AkinEgba:

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

Wake up.

jesuslovesme123:

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 .

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

GPA5: 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 BROWN ROOFS NO SLUM IN ENUGU, ANAMBRA

Dude 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

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

chinolization: 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!

SOUTH WESTERNERS DON'T NEED TO TURN TO PHOTOGRAPHER BEFORE THE TRUTH ABOUT THE REGION IS BEING KNOWN

I HOPE YOU READ THE ARTICLE

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

AkinEgba:

You mean twice their individual sizes or their combined size?

Twice there individual population. Port-Harcourt should be above 2million while Aba and Onitsha are roughly above a million each.

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..

chinolization: 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!

South Westerners prefer intelligent debate to empty, tribalistic rhetoric. Therefore, you should understand why you and I have nothing more to discuss.

Rikidony:
Dude 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

SCHOOL YOURSELF.

THIS IS HOW THE Igbos WILL BE PUT TO SHAME. GO AND READ THE ARTICLE ABOVE