Understanding Living Expenses in Nigeria

In this edition of our Newsletter, we explore the significant insights gathered from our recent survey on the cost of living in Nigeria. Our goal is to interpret these findings and spotlight some initiatives and opportunities that can be designed by understanding consumer behaviour and financial pressures.

Main Expense Categories

Respondents were asked to identify their primary monthly expense categories with the first question. The majority of respondents (84.0%) cited food as their main expense category closely followed by transportation, housing and utilities.

This highlights the critical role of food costs in household budgets and suggests a strong market for businesses in the grocery, food delivery, and discount retail sectors. Companies can capitalise on this by offering budget-friendly options, discounts, and loyalty programs to attract price-sensitive consumers. Moreover, innovative solutions like meal planning services and bulk purchasing options could resonate well with this dynamic market in Nigeria.

Cutting Back on Expenses

Versus Scouts were asked how often they cut back on expenses due to financial constraints. Many respondents (60.3%) reported cutting back on expenses daily, indicating pervasive financial strain, while (21.6%) cut down expenses weekly and (16.1%) responded to monthly expenses changes.

This provides a clear opportunity for businesses offering cost-saving solutions, such as discount retailers, coupon apps, and financial planning services.

Additionally, companies can develop targeted marketing campaigns emphasizing value and affordability to appeal to this cost-conscious audience. Financial institutions might also find a market for budgeting tools and credit products designed to manage and help reduce common financial pressures.

Additional Income Sources

Respondents were asked if they had sought additional sources of income to cope with rising expenses. With 79.3% of respondents seeking additional income sources, there is a clear demand for gig economy platforms, freelance opportunities, and part-time employment options. Companies in these sectors can attract a motivated workforce by offering flexible job opportunities and competitive compensation.

Additionally, educational institutions and online learning platforms could benefit from providing courses and certifications that enhance employability and income potential.

Conclusively, this survey on the cost of living in Nigeria reveals significant financial challenges consumers face, particularly in managing food costs and the frequency of expense cutbacks. Businesses can leverage these insights to develop products, services, and marketing strategies that address these pain points, offering value, affordability, and additional income opportunities. By aligning with consumer needs, companies can not only drive growth but also build stronger relationships with their customer base.

Stay tuned for more insightful analyses and market trends from Versus Africa or visit our website versus.africa/demo to book a demo today.