As inflation continues to tighten household budgets, Nigerians are reshaping their spending habits, putting health and wellness at the forefront of their priorities in 2025.
The Nigerian Consumer Outlook Report 2025 highlights this shift, attributing it to increasing health awareness and a global movement toward prevention over cure.
While consumers are faced with rising costs, many are making intentional choices to safeguard their well-being, shifting towards locally sourced, nutrient-rich foods and prioritising regular medical checkups.
“Food remains the top spending priority as healthy living tops Nigerian consumers’ health and wellness priorities for 2025. A growing segment of consumers is investing in health and wellness, with an increased focus on healthy eating and medical checkups.
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“However, rising exchange rates, inflation, and the high cost of imported products have become stronger forces pushing consumers toward Nigerian-made alternatives,” the report said.
According to the report, consumers have become more price-sensitive, paving the way for indigenous brands that are less susceptible to exchange rate fluctuations, which has increased the demand for affordable, homegrown alternatives and is reshaping the nation’s approach to healthy living.
“As affordability takes precedence, local brands are gaining traction, not only as a patriotic choice but increasingly out of necessity in a rapidly shifting economic landscape. The rising exchange rates and the high cost of imported products have become stronger forces pushing consumers toward Nigerian-made alternatives,” the report added.
In 2025, reduced spending on non-essentials is projected to impact luxury and lifestyle categories such as fashion, travel, dining out, premium gadgets, and high-end beauty products.
With food consuming 50 percent of the average Nigerian’s income, spending patterns continue to prioritise essential and affordable options. A clear behavioral shift toward healthier eating is emerging, reinforcing the demand for nutritious yet cost-effective food choices.
“Nigeria needs to diversify its agricultural food systems from a mono approach to multiple systems that will complement the prevailing approach. Our agricultural sector is largely dominated by smallholding subsistence farming. We need to start working towards complementary approaches like consolidation farming and focus strongly on developing rural hard and soft infrastructure,” Debo Akande, director, International Institute of Tropical Agriculture, said.
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What to expect in 2025
According to the report, inflation is expected to remain high, hovering between 20.7% and 33.99%, which will continue to negatively affect people’s purchasing power. However, most people will continue to allocate a significant portion of their income to food and groceries.
Housing and transportation costs are also set to take up a larger share of household budgets, particularly transportation, due to ongoing fluctuations in petrol prices.
To stay ahead, businesses must adapt by offering cost-effective, high-quality alternatives to imported brands, while Brands must focus on strategic pricing, bulk purchase incentives, and value-driven offerings.
“Due to inflation, consumers will seek cheaper substitutes for goods and services, including local brands over expensive and imported ones. Integrating Buy Now, Pay Later (BNPL) options into the customer journey can further enhance accessibility, making products more attainable despite economic constraints,” the report reveals.
