As Nigeria’s recession recedes, there is an aura of good news spreading across Nigeria’s economy. Inflation is decelerating on a month on month basis since the beginning of the first quarter.
However, the situation is not ‘All well and dandy’. At 16.25%, the Nigerian Bureau of Statistics, NBS said in its latest data release that the food sub-index was 19.30% with a marginal decrease of 0.03% on a month on month basis.
At the very granular level, you are right to explain that essential and staple food items such as such as bread, meat, cheese, fish, eggs, vegetables and tomatoes have become more financially-elusive to the very people who need them most
Here is the truth: Nigeria’s lower income population and a vast majority of the lower middle-class bracket are still having one of the worst financial predicament in the last 20 years as far as Nigeria’s existence is concerned.
However, there is still positive in the midst of this gloomy period. For brands who are the consumer and services side of things, there is one good that is coming out of the entire recession.
Unknowing to many people, the food and agricultural sector was and is going through a reset. All other things have been equal Nigeria will be self-sufficient in rice production by next year. As a matter of fact, Thailand. Nigeria’s main source of rice exports has seen one of its worst trading periods since 2015 due to a crash in Nigeria’s importation of rice. The Central Bank of Nigeria’s Anchor Borrowers’ Programme is boosting local production of rice in geometric progression.
It is expected that as the Naira (NGN) continues to regain its footing against the dollar (USD) and foreign direct investment picks up, a further crash in food prices is expected.
As consumers see a reprieve in food prices, other sectors will experience a pick up as disposable incomes will virtually increase. Therefore brands and advertisers who have been in hibernating mood should reboot activities as there will be a surge in marketing activities.