In line with the popular saying that “nothing is constant except change” by Greek philosopher Heraclitus, the Nigerian consumer will face significant challenges whilst transitioning to a near perfect market. This trend is reinforced by the growing rate of urbanization in the country and the impact of technology and high inflation (15.63%) on consumers’ spending patterns. 55% of Nigerians are expected to live in cities or towns by 2025. 5% of the fastest growing cities in the world, according to the Economist’s World in Figures book, are in Nigeria. Nigeria’s changing consumer landscape has brought to fore the need for organizations and brands to adopt an omnidirectional approach to meet consumers’ needs. At the centre of this is the need to leverage on technology and unique customer relationships in both their service offerings and the delivery channels.
The New Fuel Crisis
Nigerians have been thrown into another chaotic situation, after reports of adulterated fuel filtered into the markets resulting in a fuel crisis in the country. Petrol filling stations are now marked by long queues due to severe fuel shortages and there have been reports of vehicle breakdowns from the use of the adulterated fuel. While regulatory authorities are trying to resolve the crisis, prolonged fuel shortages could exacerbate macroeconomic instability and undermine economic recovery efforts.
FG steps up measures to boost domestic revenue generation
The Federal Inland Revenue Service (FIRS) has announced the resumption of tax payment on income derived from bonds and short-term government securities excluding bonds issued by the federal government. This is coming barely one month after the introduction of a 6% digital tax on foreign e-commerce businesses and a N10/liter sugar tax, which highlights the government’s quest to boost its revenue generation. However, this could have some unintended consequences on the economy.
In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and the economy at large.
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