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Nigerian Consumer Sentiment Suffers Sharp Decline

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Shifts in Africa’s Consumers

By Modupe Gbadeyanka

The latest report from Nielsen West Africa has disclosed that consumer sentiment in Nigeria suffered a sharp decline in the second quarter of 2020.

In the Nielsen Consumer Confidence Index (CCI), it was stated that Nigeria’s index decreased by 14 points to 108, while Ghana, its West African brother, reported a substantial decrease of 15 points to 104.

The declines in the two West Africa giants were attributed to the unprecedented COVID-19 pandemic, which caused the two countries to declared lockdowns as part of efforts to stop the spread of the virus.

This consequently caused loss in the economy and forced some companies to lay off some of their employees, while citizens were unable to purchase things they used to.

According to the report, in Q2 2020, Nigerian job prospects declined with less than half viewing them as excellent or good, a 14-point drop from the previous quarter.

Nigerians’ sentiment around the state of their personal finances also showed a decline with 59 percent who think they will be excellent or good over the next year, having decreased 19 points from the previous quarter.

Immediate-spending intentions also declined, with only a third of the respondents saying “now is a good or excellent time to purchase” what they want or need, a 14-point drop from the previous quarter.

In terms of whether Nigerians have spare cash to spend, 32 percent said yes, versus 50 percent in the previous quarter.

An analysis of Nigerians spending priorities, once they have met their essential living expenses, it was observed that 81 percent said they would put their spare cash into savings, 73 percent said home improvements and decorating and 66 percent would invest in shares/mutual funds.

Furthermore, 76 percent of Nigerians said they had changed their spending to save on household expenses compared to this time last year. To reduce expenses, 67 percent said they had delayed the replacement of major household items (a 10-point increase on the previous quarter).

In addition, 64 percent said they would spend less on new clothes and 56 percent said less out of home entertainment – both of which are understandable given ongoing restricted living patterns.

In the next 12 months, Nigerians said their top concern would be attaining a work/life balance (31 percent), which has seen the biggest increase of eight points compared to the previous quarter. This is followed by increasing food prices (23 percent) and concerns over the economy (19 percent).

Commenting on the consumer sentiment for Nigeria, the Managing Director of Nielsen Nigeria, Mr Ged Nooy, stated that, “As Africa’s largest economy and the largest exporter of oil, Nigeria’s economy was already under immense pressure before the COVID-19 lockdown due to the collapse in international oil prices.

“Based on the additional economic pressure as a result of the COVID-19 pandemic, Nigeria, therefore, instituted a fairly early easing of its 5-week lockdown in early May due to the adverse financial effects on its economy and population.”

Elaborating on these results, Mr Nooy submitted that, “Economic recovery has been sluggish and will remain severely constricted due to the oil price crash amidst and beyond the pandemic.

“For Nigeria’s manufacturing and retail sectors to rebound will require a sharp focus, as trade opportunities and execution remains severely constrained, having further deteriorated during the partially restricted living period.”

Looking at Ghana’s performance, its citizens have significantly dropped their outlook around their job prospects, with less than half (45 percent) saying they will be good or excellent in the next 12 months – a 16-point decrease from the previous quarter.

In terms of the state of their personal finances over the next 12 months, 60 percent say they are excellent or good, again a substantial 16-point drop from the previous quarter.

Ghanaians propensity to purchase has also seen a considerable decrease quarter on quarter, with the number of those who think now is a good or excellent time to purchase what they want or need drop from 52 percent to 33 percent in the second quarter.

Only 43 percent of Ghanaians say they have spare cash, down 13 points from the previous quarter. Once they meet their essential living expenses, the highest number of consumers (74 percent) put their spare cash into savings, followed by 73 percent on home improvements/decorating and 56 percent who would invest in stocks and mutual funds.

One of the most significant drops in discretionary spending is on holidays down from 58 percent to 27 percent – a clear indicator of consumers’ mindset shift away from non-essential services and their desire to avoid unnecessary travel.

When asked whether they had changed their spending to save on household expenses compared to this time last year, 75 percent said yes, up seven points from the previous quarter.

To reduce expenses, 53 percent said they spent less on new clothes, 52 percent on out of home entertainment, with the same figure deferring on the replacement of major household items.

When looking at the real-life factors that are affecting their outlook, the top consumer concerns over the next 12 months were increasing food prices (29 percent), followed by work/life balance (23 percent) and their children’s education (22 percent).

Yannick Nkembe, Market Lead for Nielsen West Africa Expanded Market, noted that, “The latest consumer sentiments reflect the market reality.

“With the global pandemic affecting the economy and causing general uncertainty all around, consumers have readjusted their confidence levels and are also more cautious with their spend.”

Nkembe added that, “Ghana has previously experienced strong business prospects and with the relatively earlier easing of restrictions to stimulate its economy, recovery in Ghana is likely to rebound sooner.

“We expect consumers to revert to previous consumption behaviours, although some of their attitudes will have fundamentally or permanently changed post the pandemic.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Fani-Kayode Cites Ideological Reasons for Choosing S’Africa Over Germany

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Fani-Kayode

By Adedapo Adesanya

The former Minister of Aviation, Mr Femi Fani-Kayode, has been redeployed from Germany to South Africa as Nigeria’s ambassador.

Mr Fani-Kayode disclosed in a statement issued on Thursday, stating that President Bola Tinubu has approved his reassignment to South Africa upon his request, contrary to reports that he was rejected by the European nation.

The request, he said, was put forward days after his posting was announced in March alongside that of 64 other ambassadorial appointees.

The former aviation minister said he “personally sought” redeployment due to personal and ideological reasons.

“I expressed the fact that I would rather serve in a country that shares some of my convictions, beliefs and values when it comes to world affairs, that has the biggest economy in Africa, that has closer ties to Nigeria, and that is more proximate to my political thinking when it comes to foreign affairs and a pan-African vision,” Mr Fani-Kayode stated.

He also said, “I was not comfortable with Germany for several personal reasons. Given that I have lived in Europe most of my life, I would prefer to go to South Africa, which is a country that I have never been to and for which I have so much interest.”

He disclosed that he had presented his request and reasons to the then former Minister of Foreign Affairs, Mr Yusuf Tuggar, who was still in his seat at the time.

He said Mr Tuggar considered his request favourably and subsequently presented it to President Tinubu, who approved the redeployment.

The former minister said he had spent much of his life in Europe and wished to serve in a country within Africa that aligns more closely with his views on foreign policy and Pan-Africanism, describing South Africa as a country with strong bilateral ties with Nigeria and as occupying a strategic position on the continent due to its economic influence.

He expressed gratitude to both the president and the foreign affairs minister for what he described as a “gracious” consideration of his request.

He also acknowledged Mr Sam Enang, the appointee initially posted to South Africa, for agreeing to swap places with him. This thereby makes Mr Enang the ambassador-designate to Germany.

He also denied the report that Germany rejected him for previously making tribalist and ethnic slurs. He insisted that the decision to switch was made solely by him.

“Germany never rejected me,” he wrote, adding that the report published by People’s Gazette in March was inaccurate.

The report stated that Germany rejected Mr Fani-Kayode’s ambassadorial posting due to his past “rabid ethnic and religious slurs as well as his erratic behaviour.”

Responding to this, however, Mr Fani-Kayode said, “The story was not only irresponsible and insulting but was also a total and complete fabrication based on hearsay, beer parlour talk and cheap gossip and designed to embarrass me, the President.

“Worse still, they listed a number of clearly outlandish and absurd reasons for this purported and fake ‘rejection’ which they patched together and concocted reflecting the malevolent condition of their perverse imagination.”

The minister claimed that preliminary findings from an internal investigation showed that the report was sponsored and written with malicious intent.

He also added that petitions had been submitted to relevant security agencies regarding the publication and the individuals allegedly responsible for the report.

“I have also briefed my lawyers…and we shall be suing them in a civil action for defamation,” he said.

The former minister maintained that no formal rejection was ever issued by Germany, stating that the report emerged after diplomatic communication relating to his redeployment to South Africa was leaked and misrepresented.

“What actually happened was that the day an “agreement” was sent to South Africa by the Ministry of Foreign Affairs, which was on March 13th, it was leaked to them and they falsely and maliciously reported that it was sent only because I had been formally rejected by Germany, which they knew to be false,” he noted.

He added that he looks forward to serving Nigeria in South Africa, which he described as a country with a “remarkable and inspiring history.”

Meanwhile, Mr Fani-Kayode’s posting to South Africa comes amid growing tension of xenophobia and anti-black immigrant campaigns in the country.

The Foreign Minister, Mrs Bianca Odumegwu-Ojukwu, summoned the South African High Commissioner to Nigeria following the murder of two Nigerian nationals allegedly by officials of the South African National Defence Force (SANDF).

One of Mr Fani-Kayode’s first tasks will likely be addressing the xenophobic violence as it affects the lives and interests of Nigerians in the country.

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Ogun NSCDC Arrests 210 Suspects for Vandalism, Illegal Mining

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Ogun NSCDC

By Adedapo Adesanya

The Ogun State Command of the Nigeria Security and Civil Defence Corps (NSCDC) says it arrested 210 suspects for vandalism, fraud, and illegal mining in the last 18 months as part of its anti-vandalism drive.

The Ogun State Commandant, Mrs Remilekun Ekundayo, disclosed this during a courtesy visit to the Nigeria Union of Journalists, NUJ, council in Abeokuta, the state capital.

Mrs Ekundayo said the command had also recovered over N23 million in fraud-related cases for victims and resolved more than 1,700 disputes through alternative dispute resolution mechanisms within the same period.

She added that the command has sustained intelligence-driven operations that have prevented several criminal activities and ensured the protection of pipelines, railway corridors, and power installations across the state.

While stressing that security remains a shared responsibility, Mrs Ekundayo called for stronger collaboration with the media to enhance public awareness and safety in the state.

According to her, the visit was aimed at strengthening cooperation between the corps and the media, describing journalists as critical partners in the state’s security architecture.

“In matters of security, your role becomes even more strategic and impactful,” she said.

“The NSCDC is statutorily empowered to protect critical national assets and infrastructure, prevent vandalism and economic sabotage, and support disaster management and emergency response,” she said.

In his remarks, the Ogun State Chairman of the NUJ, Mr Wale Olanrewaju, assured the commandant of the council’s support and continued partnership through accurate and prompt reporting of security issues.

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Defence Minister Musa Warns Mali Conflict May Destabilise West Africa

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defence minister christopher musa

By Adedapo Adesanya

Nigeria’s Minister of Defence, Mr Christopher Musa, says the capture of a key Malian town by rebels poses a threat to West Africa that requires foreign intervention to prevent the insurgency from spreading.

A series of coordinated attacks by militants in late April left Mali’s Defence Minister dead and forced Malian and Russian mercenary forces to withdraw from the northeastern stronghold of Kidal.

Mr Musa, a retired army general, said in an interview with Bloomberg that the international community must come together to deal with the insurgents before they wreak havoc on the region.

The deteriorating situation in Mali may trigger a wider regional crisis, the defence minister said.

His admittance comes as the border region of Nigeria, Benin and Niger on the southern edge of the Sahel region is becoming a new stronghold for jihadists, as militants turn forests and pastoral networks in West Africa into bases for recruitment and international attacks.

“If they allow them to get any foothold in Mali, completely, they are not stopping there,” he warned.

He called for a joint campaign style like that of the United States against the Islamic State in Syria as a way to root out terrorists in West Africa.

General Musa noted that the collapse of states across the region has been the main driver of arms proliferation, with coastal West African states, including Ghana and Togo, becoming increasingly vulnerable.

He cited the fall of former Libyan dictator Muammar Gaddafi in 2011 as a turning point that released vast stockpiles of weapons into circulation, a problem compounded by ongoing instability in Sudan.

The combined crises have created an open corridor across the Sahel, allowing small arms, light weapons and ammunition to flow largely unchecked.

He added that this has worsened due to weak border controls and the ease of movement across the region.

Attacks in Nigeria have also risen, with data from the website of the Armed Conflict Location & Event Data (ACLED), a conflict-monitoring group, affirming that the number of suicide bombings in Nigeria by March already matched the annual average over the past six years.

The Nigerian military has also been dealt a blow to its military bases and senior figures targeted. In April, Brigadier-General Oseni Omoh Braimah was killed when Islamist fighters attacked a base in Borno State.

The minister said disruptions linked to global conflicts, including the war in Ukraine, as well as the ongoing war in Iran, have made it harder to source weapons even when funding is available. To meet its defence goals, Nigeria is stepping up efforts to build domestic arms-manufacturing capacity.

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