General
Nigerian Consumers Highly Price Conscious—Study
‘Money’s too tight to mention’ for Nigerian shoppers who are highly price conscious and are taking several measures to mitigate rising food prices including cutting down on luxury items and buying in bulk to benefit from lower prices. These are just some of the findings from Nielsen’s latest 2019 Nigeria Shopper Trends Report.
Nielsen Consumer Insights Lead for West Africa Abiodun Olawale-Cole says; “Nigerian shoppers have become more cautious with their spend, they are pre-planning their category choices prior to shopping visits and once in store; mostly buying essentials and switching to cheaper brands.
“Factors impacting these choices include the fact that they’re increasingly shopping with a limited budget and are keen on low prices. In addition, a high number of shoppers notice price changes and most think prices are on the rise.”
Despite their concerns around price, Nigerian shoppers are experimental when it comes to trying new stores and will visit a new outlet in the area. Though motivated for initial visits, this is not seeing shoppers move past the trial stage of the shopping journey and is not converting them to loyalists.
Olawale-Cole suggests; “Retailers and manufacturers must consider the current shopper mindset when it comes to product pricing and strive to meet the needs and wants of a price conscious and deal-seeking shopper to improve loyalty and secure higher spend.”
Modern trade gains ground
Looking at the evolving roles of Modern Trade (MT) e.g. branded supermarkets and stores versus Traditional Trade (TT) e.g. non-branded stores, table-tops and kiosks within the Nigerian retail space, Olawale-Cole says that MT is starting to gain a foothold with a total value share of around 5% of FMCG sales.
“More than 90% of FMCG sales within Nigeria still take place within TT outlets in terms of value and volume and we don’t see that changing much in the next 12-months, however, we do expect significant growth in MT within the next five years.”
“Where we are seeing a lot of growth is in the number of physical MT stores with a number of local branded supermarkets opening e.g. Adide, as well as international chains such as Shoprite and Spar having bolstered the market. The percentage of spend has also almost doubled in Supermarkets compared to 2 years back (17% in 2017 to 33% in 2019), signalling more acceptance of modern trade in the country.”
The Nielsen Shopper Trends study found that Nigerian shoppers mainly use TT for their top up shops, so frequency of visits to these types of stores is understandably higher. Their main reason for visiting MT stores is for bulk shopping with spend normally much higher for this type of trip and visits to supermarkets averaging four times a month, while visits to convenience stores average nine times a month.
Convenience is key
Olawale-Cole elaborates; “Nigerians are starting to shop at Modern Trade outlets more; with one of the key drivers of this behaviour being the convenience of a one stop shop. This is evidenced by the fact that Convenience Stores have the highest monthly footfall within the MT category, with average shopper visits more than double that of Supermarkets.
It’s important to note that Traditional Trade (TT) also offers convenience in the form of close proximity to home and office and still provides better pricing on certain items but Olawale-Cole says; “In line with consumers’ need to simplify their lives, we foresee urban MT retail outlets e.g. supermarkets, growing their share of trade in Nigeria, as consumers become more willing to pay for the convenience and time saving benefits of one stop shop solutions.” Evidence of this is that larger independent MT stores are already gaining ground in Nigeria’s urban areas, with formats offering a combination of large and small stores.
Overall, the growing demand for convenience presents manufacturers and retailers with countless opportunities.
Olawale-Cole comments; “Today, convenience transcends products, services and store channels. Packaging innovation, route to market, storage, portability and ordering, as well as device, payment and application technologies all need to be key considerations in providing an overall convenience experience that appeals to the discerning Nigerian shopper.”
General
DSS Accuses Malami, Son of Terrorism Financing in Court
By Adedapo Adesanya
The Department of State Services (DSS) has arraigned the former Attorney General of the Federation (AGF) and Minister of Justice, Mr Abubakar Malami, and his son, Mr Abudlazizz Malami, on a five-count charge of abetting terrorism financing and illegal possession of firearms.
They were arraigned before Justice Joyce Abdulmalik of the Federal High Court in Abuja, where they pleaded not guilty to the charges.
In the charge, the former AGF was accused of knowingly abetting terrorism financing by refusing to prosecute terrorism financiers whose case files were brought to his office as the AGF in the last administration for prosecution.
Recall that the secret police had arrested Mr Malami, shortly after his release from Kuje prison in Abuja more than two weeks ago after Justice Emeka Nwite of the Federal High Court in Abuja granted him and two others bail in the sum of N500 million in another case involving the Economic and Financial Crimes Commission (EFCC).
Mr Malami and his son are also accused by the DSS of engaging in conduct in preparation to commit act of terrorism by having in their possession and without licence, a Sturm Magnum 17-0101 firearm, 16 Redstar AAA 5’20 live rounds of Cartridges and 27 expended Redstar AAA 5’20 Cartridges.
His arrest in January followed weeks of reports of surveillance by the secret police in front of the prison facility since the time Mr Malami, his wife and son were remanded there over the money laundering charges.
As per reports, Mr Malami had gathered that he would be picked up upon regaining his temporary freedom and so decided to wait out the DSS. However, after his eventual emergence, the operatives took the ex-AGF into detention again.
General
Lagos Launches Coastal Community Responder Programme for Waterways Safety
By Adedapo Adesanya
The Lagos State Waterways Authority (LASWA) has initiated an inter-agency partnership with the Centre for Rural Development (CERUD) to establish the Coastal Community First Responder Programme (CCFRP).
The first responder programme is aimed at promoting safe and secure transportation across Lagos waterways.
The initiative was unveiled during a meeting between a LASWA delegation and officials of the Ministry of Local Government, Chieftaincy Affairs and Rural Development at the secretariat in Alausa.
Leading the LASWA team, Mr Olademeji Shittu said the programme is designed to reduce fatalities and material losses on Lagos waterways, particularly in hard-to-reach coastal communities.
According to Mr Shittu, the CCFRP will focus on empowering community volunteers through targeted capacity building for sustainable rural development, while also equipping them with relevant skills that can enhance employability within the maritime sector.
He noted that trained volunteers will serve as community-based first responders, working in close collaboration with LASWA to strengthen search and rescue operations.
Providing the rationale for the programme, Mr Shittu highlighted the recurring cases of marine incidents and fatalities on Lagos waterways, often worsened by delayed emergency response in remote coastal areas.
He explained that residents of these communities are usually the first on the scene during accidents, making it necessary to formalise their role through structured training and partnerships.
He added that the collaboration with CERUD will help create a sustainable framework that aligns community development with safety and emergency response, while fostering a sense of ownership and responsibility among coastal residents.
According to a statement, the Coastal Community First Responder Programme is expected to enhance emergency preparedness on Lagos waterways, improve response times during marine incidents, and contribute to safer water transportation across the state.
General
NLC, TUC Suspend Planned Protest, Ask FCTA Workers to Resume
By Adedapo Adesanya
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have suspended their planned protest in the Federal Capital Territory and instructed workers under the Federal Capital Territory Administration (FCTA) to return to their duties with immediate effect.
The directive followed an overnight engagement involving labour leaders, the Minister of the FCT, Mr Nyesom Wike, and members of the Senate Committee on the FCT.
The meeting, which began late on Monday, stretched into the early hours of Tuesday, culminating in an agreement that led to the unions’ decision to halt the protest action and restore normal activities across FCTA offices.
This comes after Justice Emmanuel Subilim of the National Industrial Court issued an interim order restraining the NLC, TUC, and three others from embarking on any form of industrial action or protest.
Ruling on an ex-parte application filed by the Minister of the FCT and the FCT Administration, Justice Subilim granted an interim order restraining the 1st to 5th respondents and their privies or agents from embarking on strike pending the hearing of the motion on notice, also ordering the 5th-9th defendants who are security agencies to ensure no break down of law and order.
The ex-parte motion, which was filed by the counsel to Mr Wike and the FCTA, Ogwu Onoja, submitted that the Chairman of the FCT council had sent a message of mobilization to members and affiliated unions for a mass protest scheduled for February 3.
This move, he noted, was in violation of the orders of court, adding that after the ruling of the court on January 27, the order of the court was served on the defendants, same day the NLC and TUC issued a statement to all affiliated unions to intensify and sustain the strike.
The statement jointly signed by both unions directed that the striking workers should resume the strike as the unions’ counsel, Mr Femi Falana, has filed an appeal against the interlocutory ruling.
He further pointed out that With the statement, JUAC issued a circular directing all employees to continue the strike.
This position they say is aimed at causing break down of law and order in the Nations capital.
The court subsequently adjourned the case until February 10 for hearing.
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