WEST AFRICAN CONSUMER SENTIMENT PRESENTS MORE POSITIVE PICTURE
WEST AFRICAN CONSUMER SENTIMENT PRESENTS MORE POSITIVE PICTURE
Lagos, 3 February 2021 – Against the backdrop of the ongoing COVID-19 pandemic, the NielsenIQ Consumer Confidence Index (CCI) for West Africa has presented a more positive picture in Quarter 4, 2021 with Nigeria CCI at 114, reflecting a slow but steady return to levels above 120 seen during 2019, while Ghana continues to show an improvement to its current CCI of 123.
NielsenIQ West Africa MD Ged Nooy comments; “As the largest economy on the continent, Nigeria has managed to keep its COVID-19 infection rate relatively low in proportion to its 206-million population, however, its macro-economic prospects have been dampened by lower oil prices, increased food prices and rising inflation, together with a 50% VAT increase in 2020. Despite these challenges, Nigerian consumers remain upbeat about their prospects.”
This has seen improved confidence around job prospects, with 58% of consumers saying they will be good or excellent in the next 12 months – a 3-point increase from the previous quarter. In terms of the state of their finances over the next 12 months, 78% say they will be excellent or good, showing a substantial 11 point increase from the previous quarter. Nigerians’ propensity to purchase has unfortunately seen a 13 point decrease to just 27% of Nigerians who think now is a good or excellent time to purchase what they want or need.
In terms of whether they have spare cash left after paying for essentials, 26% of Nigerians say yes, down seven points from the previous quarter. Once they meet their essential living expenses, however, the highest number of consumers (78%) put their spare cash into savings, followed by 73% who spend it on home improvements and 61% who invest in stocks and mutual funds.
Despite their more positive medium to long term outlook, their wallets remain tight with 80% of Nigerians saying they have changed their spending to save on household expenses compared to this time last year. To reduce expenses, the highest number of consumers (73%) said they have deferred the replacement of major household items, 63% are spending less on out of home entertainment and 56% less on at home entertainment .
Looking ahead, the top Nigerian consumer concern over the next twelve months is their children’s education and welfare at 22%, increasing food prices (16%) and the economy at 11%. Within this context, these drops reflect consumers’ confidence in the macro picture in terms of food inflation and overall economic performance.
A subdued outlook
Looking at Ghana’s performance, increased consumer confidence during the last two quarters has seen its overall index rise to 123. Fortunately, Ghanaians are still fairly optimistic in terms of their job prospects with 67% saying they will be good or excellent in the next year. In terms of the state of their finances over the next 12 months, 74% say they will be excellent or good –
Ghanaians propensity to purchase has also seen a considerable decrease half think now is a good or excellent time to purchase what they want or need.
Only 46% of Ghanaians say they have spare cash and once they meet their essential living expenses, the highest number of consumers (68%) put their spare cash into savings. This is followed by 57%who say they invest in shares and mutual funds and 56% on home improvements
When asked whether they had changed their spending to save on household expenses compared to this time last year, 73% of Ghanaians said yes. To reduce expenses, the highest number (49%) said delaying the replacement of major household items followed by 48% spending less on new clothes and 47% less on out of home entertainment.
When looking at the real-life factors that are affecting their outlook, the top consumer concern over the next twelve months is work/life balance (12%), followed by increasing food prices, job security and tolerance towards other religions – all at 11%.
Looking at the future outlook for Ghana, Nooy comments; “Ghana is likely to outperform the regional economic growth average in 2021 which bodes well for increased domestic demand and consumption levels. To benefit from these improved circumstances retailers will need to meet radically altered consumer, demands, needs and behaviours that will impact where they shop, what they buy, why they buy and how much they are willing to spend.”
Nigeria and China Explore Ways to Enhance Bilateral Relations as Trade Value Drops by N37.3bn in 2022
Nigeria and China have long maintained a cordial trade relationship, but recent statistics show a decline in bilateral trade by N37.3bn ($81m) to $219m in 2022 from the previous record of $300m in 2021.
Despite this decline, both countries are making efforts to enhance bilateral relations and explore ways to increase trade value.
Wang Yingqi, the Minister and Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, led a delegation from the Chinese Chamber of Commerce to the Executive Secretary of the Nigerian Investment Promotion Commission in Abuja. During the meeting, he emphasized the need to improve bilateral relations and increase trade value.
Yingqi stated that the Chinese government has invested in the Lekki Free Trade Zone through a Public-Private Partnership with the Nigerian and Lagos State governments.
He further highlighted that the total investment from Chinese companies to Nigeria in 2022 was around $219m, while in 2021, it was $300m.
Responding to the delegation, the Executive Secretary of the Nigerian Investment Promotion Commission, Saratu Umar, reiterated the federal government’s commitment to deepening business partnerships with the Chinese government.
She emphasized the need for Nigeria to start exporting finished goods to China rather than just importing raw materials.
Umar stated, “We want the Chinese business environment to identify areas of interest, whether it is agriculture or solid minerals, so Nigeria can integrate it into the Investment Masterplan.”
Dollar to Naira Exchange Rate Today March 22, 2023
As of March 22, 2023, the dollar to naira exchange rate is 1 USD to 755 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦755, Investors King reports.
This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦755 and ₦750 as of the time of writing today.
What is the current exchange rate of the dollar to naira in the black market today?
According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N755 and sold for N750.
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
Investors King understands that although the dollar to naira opened at N755 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.
On Wednesday, March 22nd, 2023, individuals in the black market purchased one US dollar for N750 and sold it for N755. This shows that the value of the Naira has declined slightly to Wednesday, March 21st, 2023, when the local currency was exchanged at N748 and sold it for N753.
To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:
- Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
- Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
- Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
- Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.
By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.
Unilever Nigeria to Reposition Products For Expansion
A renowned consumer goods manufacturer, Unilever Nigeria Plc has disclosed plans to reposition its products and expand its business for sustainability.
Unilever Nigeria Plc produces and markets consumables that include foods, household, beauty, cleansing amongst other goods, Investors King reports.
In a corporate notice signed by its Secretary, Abidemi Ademola sent to the Nigerian Exchange Limited, the company stated that its home care and skin cleansing markets will cease to exist while a rebranding takes place for increment in profit.
According to the company, the change in its business model became expedient to fast track the organisation’s growth and further satisfy the needs of their customers, employees, shareholders and other stakeholders.
Ademola explained that the new strategy would involve digital measures to simplify the business process while chances of devaluation will be avoided and reduced in the market upgrade.
The company had already visualised the extinction of the home care and skin cleansing categories in 2023 for the general growth of the firm and particularly to build a sustainable business.
The statement read in part, “this will involve repurposing the portfolio by exiting the home care and skin cleansing categories to concentrate on higher growth opportunities.
“Strengthening business operations with measures to digitise and simplify processes; and focusing more on business continuity measures that reduce exposure to devaluation and currency liquidity in our business model.”
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