By Taiwo Ajayi.
Nigeria’s economy is facing a major threat as poor consumer spending is leading to a decline in sales and profits for companies in the fast-moving consumer goods (FMCG) sector.
The average Nigerian household spends 59% of its income on food, the highest in the world. This is due to a number of factors, including high inflation, low wages, and a lack of job opportunities.
The poor purchasing power of consumers is having a knock-on effect on the FMCG sector. Companies are reporting lower sales and profits, and some are even considering layoffs or exiting the market altogether.
The situation is being exacerbated by the recent economic reforms, such as the removal of fuel subsidies. These reforms have led to higher prices for goods and services, which is making it even harder for consumers to make ends meet.
If the government does not take action to address the problem of poor consumer spending, it could lead to a recession. This would have a devastating impact on the economy and the livelihoods of millions of Nigerians.