A recent consumer insight report has revealed that more than half of Nigerians allocate nearly all of their monthly earnings to food, underlining the economic strain on households amid rising living costs. The inaugural edition of the Nigerian Consumer Outlook Report (NCOR 2025), conducted by Lagos-based marketing communications firm, SEID, highlights a shifting consumer landscape influenced by income disparity, inflation, and survival-driven lifestyle changes.
According to the comprehensive survey, which sampled over 7,000 respondents across Nigeria’s six geo-political zones, 50.1 percent of citizens now spend the bulk of their income on food alone. This stark statistic not only paints a picture of the mounting cost of living but also underscores the extent of income insufficiency in many homes. The report further revealed that over half of Nigerian earners make less than N100,000 monthly, a figure that continues to expose the growing wage gap in the country.
With inflation and inconsistent power supply adding to the nation’s economic burden, 18.5 percent of households have resorted to alternative energy sources, particularly solar, as electricity tariffs continue to rise. Similarly, 31.7 percent of Nigerians now rely on self-employment as their main source of income, reflecting a significant shift toward informal and entrepreneurial ventures as formal job opportunities shrink.
The report also unpacked trends in educational attainment and earnings, noting that Nigerians with postgraduate degrees dominate the higher-income brackets earning upwards of N800,000 monthly. Interestingly, a segment of high earners between N800,000 and N900,000 has no formal education, a trend attributed to the success of many traders and entrepreneurs operating outside the structured employment sector. Conversely, individuals with ND/NCE qualifications account for the majority of those earning below N100,000, while most unemployed respondents possess only an SSCE certificate.
As income continues to lag behind the cost of living, Nigerians are increasingly cutting back on non-essential spending. The report warned that discretionary sectors such as fashion, travel, dining, luxury gadgets, and high-end beauty products may face declining patronage, particularly among the middle class. On the flip side, there’s a noticeable uptick in spending on health and wellness, with more Nigerians now prioritising nutritious food and routine health check-ups.
SEID’s Managing Partner, Tubosun Akeju, speaking on the importance of the report, noted that Nigeria’s consumer landscape has undergone significant transformation in recent years, driven by cultural evolution, policy shifts, and technological advancement. He stressed that today’s consumer is far more conscious, pragmatic, and economically burdened than they were a decade ago.
Akeju explained that the NCOR 2025 report offers more than just numbers it provides deep, actionable insight for businesses, investors, and policymakers hoping to make sense of the rapidly evolving Nigerian market. According to him, success in such an environment depends on understanding the nuanced realities of Nigerian consumers.
Partner at Dentons ACAS-LAW, Afolabi Caxton-Martins, also endorsed the report as both timely and insightful, commending its approach to capturing the “lived experiences” of Nigerians grappling with economic hardship. He described it as a valuable resource that moves beyond statistics to reflect real behavioral trends, emerging spending patterns, and strategic opportunities that can guide decision-making for key stakeholders.
As Nigeria’s economy continues to evolve, the findings from the NCOR 2025 offer a crucial lens into how consumers are adapting revealing not only the depth of economic challenges but also the resilience and ingenuity of Nigerians navigating daily survival.
