93% of Nigerians trapped in economic recession in 2024, says report

A new report by NielsenIQ has revealed that up to 93% of Nigerians believe they are living in an economic recession in 2024, marking a significant rise from 78% in 2023.

The report, titled “Growing around the Big Squeeze,” details the impact of recent macroeconomic shocks on citizens, particularly how these challenges are affecting their purchasing power.

The report also found that 33% of Nigerians expect the country’s economy to enter a recession within the next 12 months, up from 18% the previous year.

Additionally, it highlighted that 77% of Nigerians now only have enough money to cover their basic needs, such as food and shelter.

Top concerns for consumers include the surge in food prices and the fear of a looming economic downturn. The report indicates that survival instincts are influencing consumer behavior, with many planning to further reduce discretionary spending compared to 2023.

Spending on non-essential items like outdoor dining, clothing, and takeaways is declining, while essential categories like education, healthcare, utilities, and groceries are seeing increased spending.

READ ALSO: One-third of the world risks recession this year, IMF warns

High prices are also driving brand disloyalty among Nigerians, with 70% of consumers having switched brands in the past year

The most notable shifts occurred in cleaning products, toothpaste, cooking oil, and milk, while loyalty remained higher for alcoholic drinks, juice, and telecom brands.

The report contextualizes these findings within the broader economic challenges faced by Nigeria, including the effects of President Tinubu’s reforms, such as the removal of fuel subsidies and the unification of the foreign exchange market.

While the economy grew by 2.74% in 2023, down from 3.10% in 2022, inflation has surged to a 28-year high of over 33%, with food inflation reaching 39% in July 2024.

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These pressures have severely impacted the standard of living, with international organizations like the WFP and IRC reporting that up to 16% of Nigeria’s population currently faces severe hunger.