Nigeria’s fast-evolving consumer market is entering a new phase of digital acceleration, driven largely by Gen Z shoppers reshaping the country’s retail landscape through mobile payments, AI-assisted shopping, and evolving brand loyalties.
That’s according to new insights unveiled by consumer intelligence giant NielsenIQ (NIQ) at its 3rd Annual Breakfast Conference held in Lagos under the theme “Tapping into the Upswing.”
The conference brought together top executives, marketers, and insight professionals from across Nigeria’s fast-moving consumer goods (FMCG), retail, and financial sectors.
Their goal: to decode how resilience, innovation, and data precision are powering growth in Africa’s largest economy, even as consumers navigate inflationary aftershocks and shifting spending behaviours.
Faith Wanderi, NIQ’s Market Leader for East and West Africa, opened the session by reflecting on the transformation underway in Nigeria’s consumer sentiment.
“Last year was defined by price hikes and inflationary pressures,” Wanderi said. “This year, however, we’re seeing signs of stability and stronger consumer resilience. The conversation is shifting from survival to sustainability.”
That shift, Wanderi noted, is ushering in a more balanced consumer landscape—one where Nigerian shoppers are adapting to economic challenges with a mix of pragmatism and digital ingenuity.
Delivering the keynote address, Daniel Chobardjian, President for EMEA and India at NielsenIQ, reaffirmed the company’s commitment to providing a “Full View™” of the modern consumer through advanced analytics and continuous data innovation.
“At NIQ, we are putting the customer at the centre of everything we do,” Chobardjian said. “Our mission is to equip businesses with the insights and intelligence they need to respond to consumer realities in real time.”
He added that NIQ’s investment in digital data platforms and AI-enabled analytics is giving companies unprecedented visibility into consumer patterns across markets such as Nigeria, where digital adoption is outpacing expectations.
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Nigeria’s FMCG Market stabilises
The data shared by Joyce Nwachukwu, NIQ’s Associate Director for West Africa, painted a cautiously optimistic picture of Nigeria’s FMCG sector. Despite the macroeconomic volatility of recent years, Nwachukwu said the market is stabilising, with value growth now driven by volume recovery and price resilience rather than steep inflation.
“Pricing and unit sales have largely stabilised, but value growth is being sustained by increased consumption,” she said. “Food remains the most inflation-sensitive basket, but Nigeria continues to play a central role in Africa and the Middle East’s overall growth story.”
Beverages and foods dominated the list of top-performing FMCG categories, accounting for six of the top ten segments by value. NIQ projects that both FMCG and beverage categories will expand year-on-year through 2026 and 2027, reflecting a strong medium-term outlook for manufacturers and retailers alike.
Consumers adapt with resilience
Despite persistent economic headwinds, NIQ’s data suggests Nigerian consumers are becoming more financially confident.
Oluwatosin Onayemi, Senior Manager, Retail Measurement Services, said that while the cost of living (85%), fuel prices (63%), and economic slowdown (66%) remain top concerns, their impact has started to ease.
“Only 36% of Nigerian consumers now feel financially constrained, an improvement from last year,” Onayemi said. “This signals a gradual rebound in consumer sentiment and cautious optimism.”
Nigerians, she added, are becoming more strategic in their spending—shifting from survival purchases to value-driven decisions that balance cost with quality and trust.
Gen Z leads the digital charge
One of the most striking insights from the conference was the growing influence of Generation Z in reshaping Nigeria’s retail ecosystem.
Gen Z consumers, typically aged 18 to 27, are leading the adoption of mobile payments and digital shopping tools, reflecting a broader behavioural shift in Africa’s most populous nation.
“While cash remains the dominant mode of transaction, mobile-enabled digital options are gaining traction,” Onayemi noted. “For Gen Z, convenience, speed, and access are key.”
Digital payment penetration has accelerated as fintech innovations—from QR-based retail payments to mobile wallet systems—become more integrated into daily transactions. This generational shift is not only redefining how Nigerians shop but also where brands must focus their marketing and channel strategies.
AI enters the shopping aisle
Nigerian consumers are also beginning to integrate artificial intelligence into their shopping journeys. According to NIQ’s data, 8 percent of Nigerians—predominantly Gen Z—already use AI tools such as ChatGPT and Gemini to compare products, check prices, and make purchase decisions.
This trend mirrors a broader digital evolution across Africa, where mobile-first behaviour is converging with AI-powered personalisation. Retailers and brands that leverage this data-driven shift, NIQ said, will gain a significant edge in consumer engagement and loyalty.
Brand switching and loyalty dynamics
While nearly six in ten Nigerian consumers have switched brands in the past year—mostly due to price sensitivity—brand loyalty remains strong in certain categories.
“Categories like beverages and personal care continue to benefit from emotional connection and perceived value,” said Nwachukwu. “Even amid price pressures, trust and quality remain decisive.”
That trust factor is nearly universal: 99 percent of Nigerian consumers told NIQ that brand trust is “very or somewhat important” in their purchase decisions. Quality, consistency, and transparency were cited as the leading drivers of that trust.
The power of precision
Rounding off the discussions, Clovis Munsense, NIQ’s Strategic Analytics & Insights Lead for East & West Africa, challenged businesses to embrace precision-driven growth in 2026 and beyond.
“Brands need to stop averaging their results,” he said. “Growth opportunities are not evenly distributed. You have to identify the right categories, geographies, and segments—and activate with precision.”
Munsense emphasised that granular data, rather than generalised assumptions, will define success in Nigeria’s next growth phase. By focusing on local realities—whether in Lagos, Kano, or Port Harcourt—brands can unlock hidden potential across the fragmented retail landscape.
A Market in Motion
As 2026 approaches, Nigeria’s retail and FMCG sectors appear poised for a digital and data-led transformation. With Gen Z at the forefront—armed with smartphones, AI tools, and a demand for transparency—the retail revolution is no longer on the horizon; it’s happening now.
“Nigeria’s consumer story is no longer about coping—it’s about competing,” Wanderi said in closing. “The winners will be those who understand their consumers deeply, innovate with purpose, and act with precision.”
