Consumer 2023 Wrap-Up & Outlook Report

Report SummaryIntroductionTopicsFCMGBanking & FintechTechnologyInvestmentsConsumer Habits & Economic InfluenceKey Takeaways

Report Summary

The year 2023 was an adventurous year to say the least. Especially in West Africa. Nigeria, specifically. 2023 was the political year where the new President was voted in, Bola Ahmed Tinubu, but the ruling party All Peoples Progressive Party, remained the same.

This time around, we decided to have a roundtable with our friends and partners at Imaginarium, a foremost marketing and communications agency based in Nigeria. We came up with several hypothesis around key industries that both entities often interface with and were heavily affected by the socio-political landscape in Nigeria. These industries includes: Fast Moving Consumer Goods (FMCG), Banking and Finance, Technology, Investments & Consumer habits & Economic influence. The consumer insights gathered is focused mainly in Nigeria where we have collected data around relevant topics from each sector.

In our eleventh Versus report series, in collaboration with our friends at Imaginarium - we delve into a hypothesis driven intelligence report where we conclude with direct and honest feedback from our Versus scouts' respondents across Nigeria. We also highlight where we see opportunities as well as make some bold predictions on where we see things panning out for these key sectors.

Disclaimer: Please note as you proceed to read this report. This report leverages our proprietary “Listen" & "Ask ™" methodology (click links to read more on our methodology and how we apply it in reporting) to track the African consumer markets.

Hey there, thank you for your interest our report!

To access the report, please fill in your info with your work email address. We won't spam, promise!

Oops! Something went wrong while submitting the form.


In the dynamic landscape of the Nigerian market, where consumer behavior continuously evolves alongside technological advancements and economic fluctuations, staying ahead requires more than just a reactive approach. It necessitates a proactive understanding of the underlying trends and hypotheses driving consumer preferences across key sectors.

This report focuses on five main sectors:

  1. Fast-Moving Consumer Goods (FMCG)
  2. Banking & Fintech (digital banking and finance)
  3. Technology
  4. Investments
  5. Consumer Habits and Economic Influence

In this era of rapid digital transformation and shifting consumer demands, data driven exploration becomes paramount. Each sector presents a unique set of challenges and opportunities, shaped by factors ranging from socio-economic dynamics to technological innovations. By rigorously examining hypotheses within these sectors to derive the best insights, we aim to provide a comprehensive analysis that not only illuminates current market trends but also anticipates near future trajectories.

For example, in FMCG, we'll look at new product ideas and how people buy things. In banking/fintech, we'll see how digital banking is growing and who's using it. Then, in technology, we'll check out what gadgets and services people are into. Lastly, in investments, we'll explore how people are investing their money.

By digging into these areas, we aim to give businesses helpful insights into what's going on, specifically, in the Nigerian market. Whether it's understanding what products people like or how they prefer to bank online, our report will provide practical advice for businesses to stay competitive within Nigeria.

Furthermore, we augment our analysis with the insights gotten from both primary and secondary research sources. Our technology solution allows us scrape from several sites for keywords for report topics as well as utilizing our survey tool for direct surveying with real consumers across Nigeria. 

We surveyed 250 Versus Scouts whose perspectives were gathered through these surveys. This specifically lends credence to hypotheses within these sectors to enrich our understanding of changing consumer preferences, behaviors, and economic influences using this unique primary research source.

Demographic Data Analysis

Understanding the demographic composition of consumers is crucial for comprehending their behaviors and preferences across various sectors. Here, we analyze demographic data on age, gender, income levels, and education levels among Nigerian consumers, ensuring consistency of analysis across all sectors.

Sources used by Versus

Various online sources via Versus Listen™, Versus Interact™ & Versus Ask™ Surveys


Snapshot Overview


The total number of survey responses from our pool of Versus Scouts in Nigeria.

The following demographic insights were derived from surveys we conducted among 250 Versus Scouts. This serves as a foundational dataset for all subsequent surveys and analyses presented in this report.

Age Analysis


Our analysis indicates a diverse distribution of age groups among Nigerian consumers. The majority fall within the age range of 25-34 years, comprising 63% of the surveyed population. Substantial representation is also observed in the age groups of 20-24 years (19%) and 30-39 years (42% combined). Older age groups, such as 40-49 years and above, exhibit lower participation rates.


The predominant presence of consumers aged 20 -34 suggests a focus on young adults in consumer marketing strategies across all sectors. The Gen Z and Millenial age groups are a primary focus point for most businesses and well captured in the surveys done.

Gender Analysis


Gender distribution among Nigerian consumers surveyed is nearly balanced, with a slight male majority comprising 51% of the surveyed population. Female consumers account for 49% of the total respondents.


With gender parity observed across all sectors, businesses should adopt inclusive marketing approaches that resonate with both male and female consumers. Understanding gender preferences and behaviors can inform product development, advertising strategies, and customer engagement initiatives across diverse sectors.

Income Levels Analysis


Income levels among Nigerian consumers vary significantly, with a notable proportion falling within lower income brackets. Approximately 71% of respondents report household monthly incomes below 500 USD, with 43% earning below 100 USD and 28% earning between 100 and 500 USD. Higher income brackets, above 1000 USD, represent 20% of the surveyed population. Also note that this information is constantly updated weekly and with the devaluing Naira (NGN), it also highlights a major factor in the decreasing valuation of the average consumer’s income status.


Given the prevalence of lower income levels, due to inflation and other devaluation factors, businesses should consider affordability and value proposition when designing products and services across all sectors. Pricing strategies and promotional offers tailored to budget-conscious consumers can enhance market penetration and competitiveness.

Education Levels Analysis


Education levels among Nigerian consumers demonstrate a diverse distribution, with a significant proportion holding (at minimum) bachelor's degrees (57%) and master's degrees (12%). High school graduates and those with some college credit but no degree also represent notable segments.


The high prevalence of tertiary education attainment suggests a relatively educated consumer base across all sectors. Businesses can leverage this educated demographic by offering sophisticated products and services, emphasizing quality, innovation, and intellectual engagement.

Key Topics

A. Fast-Moving Consumer Goods (FMCG)

In the dynamic landscape of Fast-Moving Consumer Goods (FMCG) in Nigeria, understanding consumer behavior is important for businesses seeking sustainable growth and market penetration. As the country grapples with factors like rising inflation, currency scarcity, and changing market dynamics, we delve into the nuanced shifts affecting various sectors, from food and pharmaceuticals to beauty and electronics.

Hypothesis 1: Consumers have a lower spending ability compared to previous seasons

The Nigerian economy is experiencing a significant decline in consumer spending due to factors such as rising inflation, scarcity of the Naira, and the removal of subsidies. Experts note that people are adjusting their spending towards essential items like food and medicine amidst economic challenges. 

We polled 250 Versus Scouts across Nigeria using Versus Ask to determine their food consumption preference: 

Which of these popular food items do you purchase or consume MORE of this period?

Versus Results: No filter applied. 250 respondents across Nigeria

Note that in our survey, we used popular food items consumed by everyday Nigerians and normally used as key indices for monitoring inflation on food. The finding from the survey shows that consumers are making more budget conscious choices, prioritizing economical options over potentially more expensive alternatives.  This drop in consumer expenditure, coupled with runaway inflation, raises concerns about increasing poverty levels and food insecurity in the country.

We polled 250 Versus Scouts in Nigeria using Versus Ask to determine their earnings over the last 12 months:

What best describes your earnings over the last 12 months?

Versus Results: No filter applied. 250 respondents across Nigeria

What best describes your earnings over the last 12 months?

Versus Results: Filtered only showing respondents for household earning of  $100 - $500

The findings from the survey highlights the prevalent trend of stagnant or diminished income levels among consumers especially for consumers who have a household earning of $100 - $500 which directly influence their spending ability.

Farmers express concerns about insufficient food production and rising costs, leading many Nigerians to resort to more affordable options like garri. There are calls for the government to prioritize agricultural development, transition to mechanized farming, address insecurity issues, and provide essential support to farmers to boost the economy and ensure food security.

The household consumption expenditure in Nigeria witnessed a significant decline, recording a negative real annual growth rate of 4.07 percent in 2022, attributed to surging prices of goods and services and inflationary pressures. This contraction, the first since 2019, reflects reduced purchasing power, particularly affecting low-income earners and vulnerable segments of the economy. Inflation, reaching a 17-year high, has led to higher product prices, prompting rationalization in spending and a decline in compensation of employees. Over 90 percent of Nigerians have experienced an increased cost of living, resulting in reduced spending on essentials and non-essentials, exacerbating poverty and declining living standards. The rising inflation has also impacted businesses, notably in the manufacturing sector, leading to increased inventory of unsold finished goods. The inflation shock has further widened the poverty net, with an estimated 15 million Nigerians pushed into poverty between 2020 and 2022, highlighting the urgent need for economic interventions to address the ongoing crisis.

Data Sources: Business Day's article on the "Inflation Chops Household Spending to six-year low,". Data visualization by Versus Africa.

Key Insights

The Nigerian economy faces a significant decline in consumer spending due to rising inflation, currency scarcity, and subsidy removal. This shift towards essential items like food raises concerns about poverty levels and food insecurity. 

We polled 250 Versus Scouts in Nigeria using Versus Ask to get their perception on the impact of the Nigerian Economy and to determine their primary criteria for food purchasing. These were our findings:

Do you feel that the current economic conditions have led to an increase in poverty in your community?

Versus Results: No filter applied. 250 respondents across Nigeria

The survey results indicate a prevailing belief that economic conditions have worsened which has contributed to a decrease in consumer spending ability. 

What is the major criteria for what you use to determine the popular foods you buy this period?

Versus Results: No filter applied. 250 respondents across Nigeria

Hypothesis 2: Increased Prices of Food in recent times

Nigeria has been grappling with high inflation rates, recording around 17 percent in 2021, one of the highest globally. This inflation is fueled by factors such as increased demand for goods and services in emerging economies like Nigeria, coupled with supply constraints. Urban areas experience higher inflation rates compared to rural communities. The Consumer Price Index (CPI) has been on a steady rise, indicating a decline in the purchasing power of the national currency (Naira). Food prices, particularly for items like rice, beans, egg and bread, have seen significant increases, impacting consumers' budgets. 

We polled 250 Versus Scouts using Versus Ask to determine their perceived price increase among popular food items in recent time:

Which of these popular food items do you think has increased in price the MOST during this period?

Versus Results: No filter applied. 250 respondents across Nigeria

The findings indicate that food prices particularly for essential (and most popularly consumed) items like rice have indeed experienced notable increases in price in recent times.

Fuel and gas prices have also risen steadily since January 2022, with consumers paying higher prices for diesel and gasoline, particularly in the South-West region. The price of cooking gas has also increased, showing disparities in refilling prices across states. Overall, rising prices and inflationary pressures continue to strain the economy and affect consumers' purchasing power in Nigeria. Currently in 2024 so far, inflation has reached 28% - an all-time high in Nigeria’s economic history.

Key Insights

High inflation rates contribute to increased food prices particularly for essential items like rice, impacting consumers' budgets and purchasing power. From the survey result below, it is evident that factors such as inflation, currency devaluation and removal of fuel subsidy have impacted consumers' purchasing power - with inflation being the biggest factor in this current spending trend.

Using Versus Ask, we polled 250 Versus Scouts to determine the economic influence on their spending habit:

Which major factor has directly influenced your current spending habits?

Versus Results: No filter applied. 250 respondents across Nigeria

Hypothesis 3: Decreased spending in online purchase of household items except for electronic appliances and hence a need for brands to invest more on product trust and credibility 

Using Versus Ask, we polled 250 Versus Scouts to determine their preferred online purchase and their primary criteria when choosing an E-commerce store. These were our findings:

What do you popularly buy online?

Versus Results: No filter applied. 250 respondents across Nigeria

What do you popularly buy online?

Versus Results: Filtered for only female respondents.

The survey results support that consumers prefer to buy mostly electronic and beauty products, which highlights the need for brands to invest more in product trust and credibility, particularly for items that consumers may be more hesitant to purchase online. 59.8% of females surveyed by Versus prefer to shop beauty & cosmetic products online. 

What is your PRIMARY criteria in choosing your preferred e-commerce store?

Versus Results: No filter applied. 250 respondents across Nigeria

From the survey result above, it is evident trust and credibility is the primary criteria for consumers when choosing their preferred e-commerce store. This shows that consumers seek assurance that they are making secure transactions, safeguarding their personal information, and acquiring high-quality products. Without these elements, the likelihood of customers completing purchases or returning for future business diminishes. Consider this scenario: when contemplating an online purchase, customers inherently seek reassurance regarding the seller's reliability and the product's accuracy. They often rely on reviews from fellow customers to gauge the credibility of both the website and the brand. Thus, cultivating trust and credibility emerges as a paramount goal for e-commerce businesses.

E-commerce in Nigeria saw a significant decline in 2022. Specifically, e-spending on furniture decreased by 23.6%, while the food sector experienced a near 16% decline. However, the electronics sector remained robust, achieving $2.4 billion in consumer spending. As a result, there is a need for brands to invest more in product trust and credibility to attract consumers. 

Key Insights

Despite the overall decrease in online spending for household items, the demand for electronic appliances and beauty & cosmetic products remains resilient due to technological advancements and changing consumer lifestyles that make products in these categories requirements. Most importantly, the sensitivity of these categories and congruence to brand loyalty. In the realm of online shopping, trust and credibility stand as pivotal pillars in the journey into the average consumer’s decision making.

Judging from the high number of women that purchase beauty & cosmetic products, the female category of consumers serve as a strategic focus for brands to cater to, especially in a downturn. They are historically known to be more loyal, passionate as natural brand evangelists and easier to retain than their male counterparts.

Hypothesis 4: Increased online purchases on beauty products and cosmetics likely as a result of influencer marketing, reviews and referrals; and convenience of purchase and delivery 

Using Versus Ask, we polled 250 Versus Scouts and asked them what influences their decision in purchasing beauty products and cosmetics online and the primary factor that impacts their online brand trust. These are the insights:

What influences your decision to purchase beauty products and cosmetics online?

Versus Results: No filter applied. 250 respondents across Nigeria

The beauty industry in Nigeria has experienced a significant increase in the number of cosmetic brands in recent years. This growth can be attributed to several factors, including influencer marketing, reviews, referrals, and the convenience of purchase and delivery.

From the survey result above, it is evident that convenience of purchase and delivery has played a major significant role in the growth of the beauty industry. With the rise in popularity of e-commerce, consumers can now purchase beauty products from the comfort of their own homes and have them delivered directly to their doorstep. This has made it easier than ever for consumers to access a wide range of quality beauty products from around the world.

User-generated content, such as recommendations and reviews from fellow consumers, is often the most influential factor in purchasing decisions. 43.5% of females surveyed by Versus who shop mainly for beauty products chose this as their primary way of choosing their best beauty brands. 

What influences your decision to purchase beauty products and cosmetics online?

Versus Results: Filtered for only female respondents.

Additionally, influencer marketing has also been a powerful tool for beauty brands - although according to the Versus polls, not necessarily the key factor considered by the majority of consumers purchasing beauty brands. In fact it was a good number of 18-24 year olds (Gen Z category) that shared that influencers actually do influence their purchasing decisions.

What influences your decision to purchase beauty products and cosmetics online?

Versus Results: Filtered for only respondents aged 18-24.

According to a recent study, 42% of 18 to 24-year-olds (Gen Z) are inspired by social media when it comes to beauty and cosmetic purchases. By partnering with social media influencers, brands can potentially reach a wider audience and build trust with consumers.

What main factor affects your trust and credibility with purchasing brands online?

Versus Results: No filter applied. 250 respondents across Nigeria

From the survey result, it is evidence that consumers rely heavily on experience and opinion of others when evaluating the trustworthiness and credibility of brands in the online beauty products and cosmetic industry.

Key Insights

Influencer marketing, reviews, referrals, and the convenience of online purchase and delivery contribute to the growth of the beauty industry in Nigeria. But as you further segment, women - the primary audience who purchase beauty products are highly influenced by product reviews and ratings. While the convenience of shopping online and reviews still hold major importance, it is very clear that the younger Gen Z consumers in the 18-24 category, will likely see influencer marketing as a major pull to influence their purchasing decision.

Brands in the beauty & cosmetics space, must optimize for best customer reviews in order to build this continuous loyalty with their female segment. It is also safe to conclude that in marketing to younger Gen Z consumers, influencer marketing can prove to be effective, however, in a downturn, recruiting an army of nano-influencers who may cost less and have more engaging followers, may prove to be the best way to go.

Hypothesis 5: Shifting trend in the purchase of pharmaceutical products as a result of concerns around quality, counterfeits, price point, and availability supply, especially for vulnerable groups such as children

The pharmaceutical industry in Nigeria has experienced a shift in purchasing trends in recent years. This shift can be attributed to several factors, including concerns around quality, counterfeit, price points, and available supply, especially for vulnerable groups such as children.

Counterfeit drugs have been a major concern in Nigeria. From the survey result below, exploring natural remedies, largely becomes the next best choice in response to seeing counterfeit products.

Improving all sections of the agriculture value chain becomes even more important now. Consumption is at an all-time high and has to be met with some consideration with affordable pricing. Adequate government intervention is needed to reduce the impact of rising cost. Recently, it was reported that the Nigerian government was exploring introducing food stamps to citizens across the country to alleviate the high cost they incur for common food items they need.

What best describes your response to seeing counterfeit products when you purchase?

Versus Results: No filter applied. 250 respondents across Nigeria

Additionally, from the survey result below, it can be seen that the high cost of drugs has led many consumers to seek out alternative sources, such as going for a lower tier alternative especially for households whose income is below $100, natural remedies and informal markets. 

Using Versus Ask,we polled 250 Versus Scouts in Nigeria to determine the action they have taken due to the hike in prices of pharmaceutical products:

What have you done in response to the increase in pricing?

Versus Results: No filter applied. 250 respondents across Nigeria

What have you done in response to the increase in pricing?

Versus Results: Filtered for only respondents with household income below $100

The government has taken steps to address these issues, including the establishment of the National Agency for Food and Drug Administration and Control (NAFDAC) to regulate the importation, exportation, manufacture, advertisement, distribution, sale, and use of drugs in Nigeria. However, there is still much work to be done to ensure that all Nigerians have access to safe, affordable, and high-quality drugs.

Consumer trust in pharmaceutical products is paramount, particularly concerning safety and efficacy, especially for vulnerable groups like children.

Key Insights

When confronted with counterfeit drugs, consumers popularly tend to resort to natural remedies or lower-tier alternatives. Additionally, the high cost of drugs has made many consumers, particularly those with incomes below $100, to seek out lower-tier alternatives and natural remedies as alternative sources. This underscores the significant impact of counterfeit drugs and cost of drugs on consumer behavior, highlighting the importance of addressing these issues to ensure consumer safety and affordability in the healthcare sector.

Local based pharmaceutical companies can also see this as a major opportunity. Foreign pharmaceutical products constitute the more expensive options and so along with stronger regulatory presence to ensure local players are compliant, this can significantly improve awareness for local pharmaceutical products who have been long serving but shadowed by their foreign competition. 

Also with natural remedies, popular products such as ginger, turmeric and garlic (amongst many others) that are natural sources of boosting immune systems, become highly demanded food crops that may require more focus than usual for farmers.

Hypothesis 6: Decreased earning leading to more granular decisions even on food products

The food industry has experienced a shift in purchasing trends in recent years due to decreased funds. This shift has led to more granular decisions, especially when it comes to food products.

Consumers are becoming more price-sensitive, and as a result, they are making more informed decisions about what they purchase. This has led to an increase in demand for lower-priced products, which has forced food manufacturers to become more competitive in their pricing strategies.

In addition, consumers are increasingly concerned about the quality of the food they purchase. They are looking for products that are healthy, natural, and free from harmful additives. This has led to an increase in demand for organic and natural products, which are often more expensive than their conventional counterparts.

Key insights

Decreased funds lead to more price-sensitive consumers making informed decisions about food purchases. There's a growing demand for affordable yet quality products, including organic and natural options.

B. Banking and Fintech

In recent years, Africa's fintech sector has enjoyed remarkable growth, attracting substantial investments and driving innovation across the continent. It is now fully integrated and synonymous to banking. However, as global economic challenges persist, there's a discernible shift in funding dynamics, with established companies garnering more attention than early-stage startups. This overview delves into the evolving landscape of African fintech funding, highlighting key trends, insights, and challenges faced by startups amidst this changing tide.

We polled 250 Versus Scouts using Versus Ask to determine their banking preference:

Versus Results: No filter applied. 250 respondents across Nigeria

Which is the best traditional bank in your opinion?

Versus Results: Results only show the 14% users who chose “Traditional Banking” as their preference.

Which is the best digital bank in your opinion?

Versus Results: Results only show the 86% users who chose “Digital Banking” as their preference.

The findings from the survey shows the preference for digital banking over traditional banking indicates a shift in consumer behavior towards technology-driven financial services, which often favor more established companies that have the resources and infrastructure to offer robust digital banking platforms. It can also be seen that 39.0% of the respondents who selected “traditional banking” highlighted Guaranty Trust Bank as their most preferred traditional bank while 46.5% of respondents who selected “digital banking” chose MoniePoint as their most preferred digital bank.

We polled 250 Versus Scouts using Versus Ask to gauge their recent experiences and perceptions regarding accessing loans and credits. Here are the insights: 

Have you tried to access a loan in the last six (6) months?

Versus Results: No filter applied. 250 respondents across Nigeria

Have you tried to access a loan in the last six (6) months?

Versus Results: Filtered for “Students” only

How easy has it become to obtain credit or loans in the past six months?

Versus Results: Results only show for the 48% who said “yes” to accessing loans in the past 6 months.

How easy has it become to obtain credit or loans in the past six months?

Versus Results: Results only show for the 39% who said “yes” to accessing loans in the past 6 months that are in the “student” category.

The survey report suggests that while accessing loans may be a common activity among substantial respondents, it is less prevalent among students. Additionally, about half of the respondents find it somewhat easy to get loans, while a quarter find it difficult. However, when looking specifically at students, a smaller portion find it easy, and more find it challenging. This suggests that students may face more obstacles when trying to access credit. This could be attributed to factors such as lower income levels, or stricter eligibility criteria for student loans.

Respondents' ease of accessing loans and their interest in digital banking suggests a broader trend towards embracing digital financial services, driven by factors such as convenience, efficiency, speed all as a result of the technological advancements they naturally present.

Hypothesis 1: Funding is being redirected away from fintech and early-stage startups to emerging sectors.

The fintech ecosystem in Africa has experienced remarkable growth in the last two years, with startups raising over US$2.7 billion in venture capital funding, according to the fourth edition of Disrupt Africa's Finnovating for Africa report. The number of fintech startups increased by 17.7%, reaching 678 in 2023. Since 2015, 540 fintech startups from 25 countries have raised a total of US$3.64 billion, making it the leading sector in African tech startup funding. Nigeria stands out as the leader in fintech investment, attracting over US$1.5 billion across 257 rounds since January 2015.

There is a potential decline in funding for 2023 due to global capital shortages. There is also a notable shift into emerging and essential sectors such as healthcare and clean tech.

Data Source: Tech Cabal's article on the "The Leading African Tech Moves from June  2023”. Data visualization by Versus Africa.

In 2023, Africa's startup funding landscape showcased both growth and cautious optimism, with over $5 billion invested, indicating a maturing ecosystem amid global economic challenges. While not surpassing the records of 2021 and 2022, the funding revealed resilience and sustained investor interest – shifting away from the usual Fintech option (only 8.4% in 2023 funding stats) into newer, emerging sectors in Cleantech (41% in 2023 funding stats) and Healthtech (27% in 2023 funding stats). 

Key Trends and Insights

  1. Fintech still relevant: Eight fintech companies, including MNT-Halan securing $400 million, emphasized the transformative role of financial technology in bridging the financial gap and empowering the unbanked.
  2. Cleantech and Agritech high emerging: Startups like Husk Power, Wetility, Nuru, and WeLight received substantial funding, highlighting Africa's commitment to clean energy solutions and sustainable agriculture.
  3. Diverse Innovation Landscape (others): Beyond fintech, e-commerce (Sabi, SAMANU), Gaming (Carry1st), Healthtech (Yodawy), and Insurtech (Naked Insurance) startups showcased the greatness of African innovation.

Data Source: Empower Africa's article on the "Top 20 Most Funded Startups in Africa in 2023. Data visualization by Versus Africa.

The top-funded startups represent the diverse talent and potential in Africa, laying the groundwork for an exciting future. Continued support for early-stage ventures, infrastructure, and talent building can propel Africa's startup ecosystem into a global powerhouse, fostering inclusive growth and positive changes. In 2023, Nigeria experienced a noteworthy 16% decline in fintech funding, amounting to $243 million, reflecting a challenging landscape. However, amidst this decline, Nigeria showcased resilience, reporting the highest number of fintech deals in a single year, totalling 60, surpassing South Africa (25) and Kenya (23).

Key Insights

This trend underscores a discerning approach, as investors seek more robust guarantees before committing to fund innovative ideas. Despite challenges, the Nigerian fintech sector remains resilient, adapting to global economic shifts and showcasing a dynamic ecosystem that continues to attract investment, notwithstanding the discerning and risk-conscious approach.

In the midst of controversies and what many have deemed an over-saturation for investments in fintech in Africa, emerging and fundamental sectors such as Clean-tech, agri-tech, health-tech and logistics are becoming increasingly sought after.

Hypothesis 2: Decreased funding to the technology industry will impact startup growth and may even lead to some folding.

Nigerian fintech firm, Kippa, has decided to lay off employees by December 2023, accompanied by the discontinuation of its offline payments platform, KippaPay, scheduled for November 15. Launched in April 2022 to support merchants with offline payments and agency banking, KippaPay's suspension is attributed to the fintech's strategic move towards "profitable product portfolio consolidation." Despite the challenging decision, CEO Kennedy Ekezie expressed pride in the team's work and the impact of KippaPay on merchants.

The company will continue supporting partners and merchants in the transition while retaining its bookkeeping and company registration offerings post-KippaPay's closure. KippaPay, initially developed as an accounting platform, received a Payment Solutions Services License from the Central Bank of Nigeria five months after its debut. The move highlights fintech's evolving focus and strategic adjustments within the dynamic fintech landscape. In the first half of 2023, at least five African tech startups faced challenges, leading to closures, pivots, or scaled-down operations. The economic downturn, coupled with a 48% decline in VC funding across the African tech ecosystem compared to the same period in the previous year, has affected startups, particularly those relying on global investors. Some notable cases include:

  1. Lazerpay (Nigeria): A crypto and web3 company that shut down due to the inability to secure additional funding.
  2. Paxful (Global Bitcoin marketplace): Temporarily suspended operations due to staff exits and regulatory issues but later relaunched.
  3. Zumi (Kenya): A B2B e-commerce startup that closed down after failing to secure additional funding.
  4. Hytch (Nigeria): A logistics startup that ceased operations after the inability to raise funds and sustain the business.
  5. Wabi (Coca-Cola-backed e-commerce startup): Shut down operations in five African markets, including Nigeria, Kenya, and Egypt.

Additionally, some startups underwent transitions or pivots:

  1. Pillow (Crypto startup): Exited Nigeria due to the regulatory climate, while continuing operations in other markets.
  2. Hover (Parent company of Stax): Transitioned from a full-time team to an open-source community due to fundraising challenges.
  3. Copia (B2C e-commerce company): Closed its Ugandan operations but decided to focus on its operations in Kenya.
  4. Nestcoin (Crypto-focused company): Impacted by the 2022 FTX crash, leading to downsizing and a pivot to build Onboard, a digital finance platform.

The challenging funding landscape in Africa, with the increasing role of local funds and economic uncertainties, poses difficulties for startups, emphasizing the importance of efficient operations. In 2023, the global decline in venture capital funding has significantly impacted the African tech ecosystem, leading to closures and resource challenges for startups. Notable closures include:

  1. Sendy (Kenya): Shut down in August due to reduced order volumes and fuel price hikes, making deliveries at a loss.
  2. 54gene (Genomics research): Winding down operations in September after raising $45 million across three funding rounds.
  3. Dash (Ghanaian payments): Folded in October amid allegations of financial impropriety and false reporting.
  4. WhereIsMyTransport (South African mobility): Closed down in October after failing to secure more investment, despite receiving over $27 million in funding.
  5. Lazerpay (Nigerian crypto and web3): Closed in April after failing to raise additional funding.
  6. Zumi (Kenyan B2B e-commerce): Closed in March after failing to secure necessary funding despite achieving over $20 million in sales.
  7. Zazuu (London-based marketplace for remittance): Closed December 2023 citing a lack of funding.
  8. Hytch (Nigerian logistics): Shut down in February after failing to secure further funding, only nine months after launch.
  9. Okada Books (Nigeria, digital publishing): Closed last month citing rough macroeconomic conditions.
  10. Pivo (Banking services for small supply chain businesses): Closed its doors, with founder conflict playing a part.

Several other high-growth ventures are facing challenges but are adapting their operations, including:

  1. Copia (Kenyan e-commerce): Pulling out of Uganda to prioritize profit.
  2. MarketForce (Kenyan retail-tech): Facing challenges after some committed VCs backed out, and turned to crowdfunding to raise capital.
  3. Twiga Foods (Kenyan platform connecting farmers to vendors): Secured new funding in a refinancing process after facing a debt collection lawsuit.
  4. Paystack (Nigerian payments): Reduced operations outside Africa, cutting its workforce in Europe and Dubai.

Hypothesis 3: Lower reserves of local and foreign currencies in banks resulting in devaluation of currencies and inflation

The economic landscape in Nigeria faces significant challenges arising from lower reserves of local and foreign currencies, leading to currency devaluation and inflationary pressures. Some of the key issues to better understand this discussion are the following:

  1. Foreign Exchange Reserves Depletion: The Central Bank of Nigeria reported a substantial decline in foreign exchange reserves to $33.23 billion in Q3 2023, marking the lowest level in two years. This represents a significant year-on-year drop of $5.01 billion compared to September 2022, exacerbating concerns about the country's ability to fund imports and stabilize the exchange rate. Quarter-on-quarter, reserves decreased by $881.84 million from $34.11 billion in Q2.

  1. Government Initiatives and Policy Shifts: President Bola Tinubu's administration embarked on economic reforms to address long standing challenges, including ending petrol subsidies and easing currency trading restrictions. However, the transition period has witnessed a decline in foreign reserves by $1.91 billion since May 2023, highlighting ongoing economic pressures and the need for effective policy interventions as well as prudent budgetary implementations.

  1. Impact on Exchange Rates and Inflation: The devaluation of the Nigerian Naira against the US Dollar, initiated in June 2023, aimed to align the currency with its black-market rate. Despite these efforts, the parallel market exchange rate surged to approximately N1005 to $1 by the end of Q3 2023, contributing to inflationary pressures. Nigeria's inflation rate stands at a staggering 28.92%, the highest in over 27 years. The official naira-to-dollar exchange rate closed Q3 2023 at N755.27, contrasting with the quarter's opening rate of N769.25.

  1. Banking Sector Resilience: Despite the devaluation, Nigerian banks have demonstrated resilience by maintaining compliance with minimum capital requirements. This has been supported by their balance sheet structures and significant FX revaluation gains. However, concerns linger regarding potential declines in capital ratios and the risk of breaching CAR requirements for some banks. Fitch Ratings warns of challenges in sustaining exchange-rate liberalization and highlights the possibility of further devaluation due to the limited supply of foreign currency. The depletion of foreign reserves poses significant challenges to economic stability, necessitating coordinated measures between monetary and fiscal policies.

Efforts to improve liquidity in the foreign exchange market, clear outstanding FX obligations, and tackle speculative activities are crucial to mitigating economic risks. Policy adjustments, interventions in the forex market, fiscal reforms, and enhanced transparency are recommended to stabilize the economy, mitigate inflation, and promote sustainable growth in Nigeria.

C. Technology

In recent years, the African startup ecosystem has garnered increasing attention and investment, fueled by a wave of innovation and entrepreneurial activity. With over 600 tech startups raising a record-breaking $3.3 billion in funding in 2022, the continent has emerged as a promising hub for tech-driven solutions to local and global challenges. However, amidst this growth, concerns have surfaced regarding governance issues, financial mismanagement, and ethical conduct within the ecosystem.The following delves into key insights focusing on hypotheses that explore the economic and Technology climate in Nigeria.

Hypothesis 1: Concerns Over Governance and Financial Mismanagement

Despite the overall growth and success of the African startup scene, recent reports have highlighted instances of financial misappropriation, poor corporate governance, and toxic work cultures. Startups like Chipper Cash, Lazerpay, and Bundle have either shuttered their doors or undergone significant layoffs since 2022, citing harsh economic conditions and challenges in securing additional venture capital as primary reasons for their decisions.

Root causes of these incidents include lax due diligence practices and weak governance controls, leaving both founders and investors vulnerable to risks. The unprecedented influx of funding into the ecosystem, soaring from $1.3 billion in 2019 to $4.8 billion in 2022, has exacerbated these challenges. While the influx of capital has fueled innovation and expansion, it has also exposed vulnerabilities, with inadequate due diligence contributing to founder misconduct and investor risks.

Key Insights:

This reveals challenges facing African startups, despite overall growth. Instances of financial misappropriation, poor governance, and layoffs at startups like Chipper Cash highlight these difficulties which have also led to funding struggles. Root causes include lax due diligence and weak governance, leaving founders and investors vulnerable. The unprecedented funding influx, reaching $4.8 billion in 2022, fueled innovation but exposed vulnerabilities (which were later seen in 2023) due to inadequate due diligence.

Hypothesis 2: Lower Trust Among Investors

The surge in funding has transformed the African startup landscape, enabling entrepreneurs to pursue ambitious projects and scale their businesses rapidly. However, it has also raised concerns about the sustainability and integrity of the ecosystem. Founder misconduct, including fraud and mismanagement, can have far-reaching implications, eroding trust among investors and stakeholders and undermining the long-term viability of startups.

Ghanaian fintech startup Dash, which aimed to facilitate cross-border payments by connecting mobile money wallets, has officially ceased operations. Founded in 2019, Dash garnered attention and significant funding, raising a total of $86.1 million in its five-year run. Despite raising $32.8 million in a seed round in 2021, Dash faced challenges as suspicions arose regarding its reported user numbers and metrics in February. Internal audits revealed misrepresentation and exaggeration of user figures, leading to the suspension and eventual firing of CEO Prince Boakye Boampong. Kenneth Kinshua took over as CEO, but a subsequent audit uncovered a $25 million shortfall, highlighting financial mismanagement. Allegations suggest Boampong diverted $8 million for personal use, including property and luxury cars. The closure underscores the perils of financial mismanagement and the impact on startups, even with substantial initial funding

Hypothesis 3: More consideration towards electric vehicles as fuel prices continue to soar

Conversely, the electric vehicle industry in Nigeria is experiencing rapid growth, driven by soaring fuel prices and government policies favoring EV adoption. Startups like SAGLEV and Possible EVS are seizing this opportunity, offering locally assembled electric vehicles as affordable alternatives to traditional petrol-powered vehicles. This also attracts demand and interest in mining lithium (raw material for manufacturing batteries) for both local and global use.

Recommendations for Strengthening the Ecosystem

Addressing these challenges requires a concerted effort from all stakeholders to promote transparency, accountability, and good governance within the ecosystem. Key recommendations include:

  1. Enhanced Due Diligence: Investors must conduct thorough due diligence to mitigate risks associated with founder misconduct and financial mismanagement.
  2. Promotion of Ethical Standards: Startups should prioritize ethical business practices, transparency, and accountability to foster trust and attract sustainable investment.
  3. Support for Female Founders: Efforts to support and empower female founders should be intensified to promote diversity and inclusivity within the ecosystem.
    Collaboration and Regulation: Stakeholders should collaborate to establish regulatory frameworks that promote good governance and accountability while fostering innovation and growth.

Additional Insights:

Impact of Regulatory Reforms on Startup Growth

Recent regulatory reforms in countries like Nigeria and Kenya have sought to create a more conducive environment for startups to thrive, with initiatives aimed at streamlining business registration processes, reducing bureaucratic barriers, and providing tax incentives for startups. These reforms have contributed to a surge in startup activity and investment, signaling a positive shift towards a more innovation-friendly regulatory framework.

Role of Corporate Partnerships in Startup Success

Collaborations between startups and established corporations have emerged as a key driver of innovation and growth in the African startup ecosystem. By leveraging the resources, expertise, and networks of corporate partners, startups can accelerate their product development, access new markets, and secure strategic investments. Successful examples of corporate-startup partnerships include MTN's collaboration with Flutterwave to launch MTN MoMo, a mobile money platform, and Google's partnership with Andela to train developers and support tech talent development in Africa.

Impact of COVID-19 on Startup Resilience

The COVID-19 pandemic has presented unprecedented challenges for startups in Africa, disrupting supply chains, reducing consumer demand, and constraining access to funding. However, it has also catalyzed innovation and resilience within the ecosystem, with startups pivoting their business models, launching new products, and leveraging digital technologies to adapt to the changing landscape. For example, health tech startups have played a critical role in combating the pandemic by providing telemedicine services, remote patient monitoring solutions, and digital health tools to support healthcare delivery.

Data Source: BitcoinKE's article on the "2023 Africa Startup Funding Report . Data visualization by Versus Africa.

Future Outlook and Policy Implications

Looking ahead, policymakers, investors, and industry stakeholders must collaborate to address the systemic challenges facing the African startup ecosystem and unlock its full potential for sustainable growth and development. Key policy priorities include:

  1. Policy Reforms: Governments should enact policies that promote entrepreneurship, innovation, and investment, including tax incentives, regulatory reforms, and support for research and development.
  2. Access to Finance: Efforts to increase access to finance for startups, particularly those led by women and marginalized groups, are essential for fostering inclusive growth and economic empowerment.
  3. Capacity Building: Initiatives to build the capacity of startups through mentorship, training, and skills development programs can help entrepreneurs navigate the challenges of scaling their businesses and accessing new markets.
  4. Infrastructure Development: Investments in digital infrastructure, including broadband connectivity, cloud computing, and e-commerce platforms, are critical for enabling startups to leverage technology and reach customers more effectively.

There needs to be more involvement with local investment and venture capital operators. Beyond cash, more resources and support should be given to founders building in Africa.

We surveyed 230+ Versus Scouts asking them about their thoughts on important factors or criteria when assessing venture capital market leaders. From the results, venture capital market leadership criterias in providing insight and expertise to founders and access to strong support networks and relationships ranks high alongside the clear criteria of having a successful track record. Here’s the visual:

What are three (3) of the most important factors/criteria when it comes to choosing a VC or recognizing a VC as a market leader?

Versus Results: 230+ respondents across Nigeria who follow early stage venture capital investing in Africa

D. Investments

Nigeria, with its vast population and diverse economic sectors, presents a dynamic landscape for investors. The following delves into key insights focusing on areas that explore the economic and investment climate in Nigeria:

We polled 250 Versus Scouts using Versus Ask to determine their investment preference. Here are the insights: 

Which of these will you consider the most promising investment going into this year?

Versus Results: No filter applied. 250 respondents across Nigeria

The survey report indicates a significant interest in cryptocurrency as the most promising investment option, followed by real estate and stocks & bonds. The diversity in preference underscore the varying risk appetites and investment strategies among respondents. This tells us that the investment world is always changing.

We further polled 250 Versus Scouts using Versus Ask to understand the aspect of cryptocurrency that inspires their optimism and positivity.

What makes you most optimistic about cryptocurrency?

Versus Results: Results show of the 44% that chose “Cryptocurrency” as their choice investment option.

The survey result shows that many people believe cryptocurrency can bring high profits, with 40.0% expecting this. Also, 36.0% are interested in cryptocurrency because the Naira's value is decreasing, while 24.0% like it because they can easily convert it to USD using stable coins.

What makes you most optimistic about cryptocurrency?

Versus Results: Filtered for only respondents aged 18-26.

The survey result shows that many people believe cryptocurrency can bring high profits, with 40.0% expecting this. Also, 36.0% are interested in cryptocurrency because the Naira's value is decreasing, while 24.0% like it because they can easily convert it to USD using stable coins. When further segmented by age group, it can be seen that individuals between the age 18-26 (Gen Zs) are more optimistic about the potential return from cryptocurrency investments compared to the older group.This indicates growing interest in cryptocurrency as a potential investment avenue, driven by prospects of high returns, hedging against currency devaluation, and access to stable currencies.

Recently, there was a government action against Binance, a cryptocurrency platform which has impacted cryptocurrency usage in Nigeria. This incidence underscores the complexities and uncertainties surrounding cryptocurrency regulation and its intersection with national economic policies.

Hypothesis 1: Lower liquidity in the market

Market Liquidity and Investment Trends

The investment landscape in Nigeria is marked by significant growth potential. Diversification efforts, particularly in agriculture, stand out as a crucial strategy to reduce dependency on oil revenue and increase revenue lines towards the country’s economy. The government's commitment to infrastructure development through PPPs creates opportunities across various sectors.

Data Source: UNDP's article on the "Africa: Investing in the Sustainable development Goals". Data visualization by Versus Africa.

Market Dynamics and Diversification Efforts

Nigeria has historically been reliant on oil revenue, a sector vulnerable to global price fluctuations. Recognizing this, the government has emphasized diversification, especially in agriculture. Abundant arable land, favorable climate, and a large population position Nigeria to become a major player in agricultural production.

Trends of Investment: Agriculture, Infrastructure & The Creative Sector

  1. Agribusiness Investments: The agribusiness sector is witnessing increased investment, driven by favorable government policies and initiatives. Investors are exploring opportunities in areas such as mechanized farming, processing, and export-oriented agriculture.
  2. Infrastructure-Backed Investments: Infrastructure development projects, particularly those facilitated through Public-Private Partnerships (PPPs), are becoming attractive to investors. The Lagos-Ibadan Expressway project, for instance, highlights the trend of infrastructure-backed investments.
  3. Creative Sector: Nigeria’s creative sector is another key investment alternative target. The U.S Economic & Business Affairs projects that by 2030, the sector will generate over $100B for Nigeria.

Challenges and Considerations
  1. Regulatory Changes: Recent regulatory changes, notably the Companies and Allied Matters Act (CAMA), are impacting investor confidence. While these changes aim to enhance the business environment, their implementation and adaptation by businesses will shape future investment trends.
  1. Infrastructure Gaps: Infrastructure development, although a government priority, faces challenges. The Lagos-Ibadan Expressway project, a PPP initiative, exemplifies the government's commitment to bridging infrastructure gaps. However, the success of such projects hinges on effective collaboration between public and private entities.

Market Liquidity Outlook

In light of evolving economic dynamics, investors are advised to adopt a cautious approach. Regular monitoring of liquidity trends and adaptive strategies will be essential for navigating the nuanced market conditions. Example: The infrastructure-focused investment funds, such as those involved in the Lagos-Ibadan Expressway project, highlight the collaborative approach to bridge infrastructure gaps and attract investments.

Hypothesis 2: Increased investigation into viability of tech companies and partnership agreements before funding can be done

Technology Sector and Investment Approaches

The technology sector in Nigeria is emerging as a key player, buoyed by government support and a tech-savvy population. The landscape is witnessing increased scrutiny into the viability of tech companies before funding and a growing trend of strategic partnerships.

Technological Evolution and Government Support

Nigeria's tech sector has gained prominence, supported by the government's proactive measures to promote financial inclusion and drive the adoption of fintech solutions. The Central Bank of Nigeria's (CBN) National Financial Inclusion Strategy has created an enabling environment for fintech companies to offer innovative products and services.

Trends of Investment: Fintech and Strategic Partnerships
  1. Fintech as a solution: The fintech sector is experiencing more consumer interest than conventional banking and attracting increased investment in companies providing mobile banking, payment solutions, and digital financial services. Investors are drawn to the sector's potential to revolutionize traditional banking methods.
  2. Strategic Collaborations: The rise of strategic partnerships between traditional financial institutions and fintech startups is a notable trend. This collaborative approach combines the stability of traditional banking with the innovation and agility of fintech, creating a mutually beneficial ecosystem.

Key Insights

  1. Viability Assessment: The slowdown of funding into fintech and mobile money solutions is a testament to the increased investigation into the viability of tech companies before substantial investments. Investors are now placing greater emphasis on assessing the long-term sustainability and growth potential of tech ventures.

  1. Strategic Partnerships: Collaborations between traditional financial institutions and fintech startups, such as Flutterwave and Paystack, showcase the trend towards strategic partnerships. These partnerships leverage technological expertise, expand service offerings, and contribute to the growth of the fintech sector.

Technology Investment Landscape

Investors should balance the allure of the tech sector's potential with thorough risk assessments. The mobile money sector, with companies like Paga and Interswitch, provides a glimpse into the evolving landscape. The success stories of Flutterwave and Paystack underscore the significance of strategic partnerships in navigating the tech investment landscape. Example: The success of Flutterwave, the fintech giant, illustrates the potential of strategic partnerships and innovative solutions in the tech sector.

E. Consumer Habits and Economic Influence

Hypothesis 1: Decreased spending on luxury and entertainment products and services as spending ability decreases

Using Versus Ask, we polled 250 Versus Scouts to determine their spending habits on Non essential goods and services over the past 6 months and the percentage of their earnings that was allocated to non-essential purchase compared to the previous years :

Over the last six months, have you reduced your spending on non-essential goods and services?

What percentage of your earning is currently allocated to non-essential purchases compare to the previous year?

From the survey result, it is evidence that economic fluctuations are anticipated to influence consumer habits, leading to a potential decrease in spending on luxury and entertainment products and services. It can also be seen that respondents from the survey allocate a smaller portion of their earnings to non-essential purchases such as luxury and entertainment products and services compared to the previous years which suggests that as consumers' ability to spend decreases, they are cutting back on purchase of non-essential products and services.

Economic Impact on Consumer Behavior

The economic landscape directly influences consumer behavior. As economic conditions fluctuate, consumer spending patterns are expected to shift, impacting sectors such as luxury and entertainment.

Trends of Investment: Adapting to Changing Consumer Behavior
  1. Affordable Alternatives: Companies in the luxury sector are exploring affordable alternatives to cater to changing consumer preferences. Real estate developers, for instance, are focusing on affordable housing options in prime investment destinations.
  2. Digital Entertainment: The entertainment sector is witnessing a shift towards digital platforms and cost-effective solutions. Streaming services and digital entertainment options are gaining prominence as consumers seek more affordable and convenient alternatives.

Consumer Behavior Shifts
  1. Spending Patterns: A decrease in spending ability will likely reshape consumer preferences, impacting the luxury and entertainment sectors. Consumers are likely to prioritize essential needs over discretionary purchases, prompting businesses in these sectors to adapt their offerings.
  2. Industry-Specific Considerations: Companies in these sectors may need to adapt by offering more affordable alternatives or value-added propositions. The key lies in understanding evolving consumer needs and aligning product/service offerings accordingly.

Industry-Specific Considerations
  1. Luxury Sector: With potential decreased spending on luxury, companies like real estate developers in prime investment destinations need to focus on affordable housing options. The real estate market, particularly in prime locations like Lagos, Abuja, and Port Harcourt, should consider adapting to changing consumer preferences and affordability considerations.
  2. Entertainment Sector: The growth of cost-effective and digital entertainment solutions aligns with potential shifts in consumer behavior. Streaming services and digital platforms may witness increased demand as consumers seek more affordable and convenient entertainment options. 

Hypothesis 2: Increased poverty across the board due to economic downturn

Socio-Economic Impact and Poverty Levels

While economic reforms target sustained growth, concerns linger regarding potential increases in poverty levels and broader socio-economic challenges. The success of economic reforms is pivotal in mitigating negative socio-economic impacts. Policy initiatives aimed at poverty alleviation, job creation, and social well-being will play a critical role in shaping Nigeria's long-term development.

Trends of Investment: 

Socially Responsible Investing

  1. Inclusive Policies: Inclusive policies addressing poverty, unemployment, and social well-being are critical for sustainable development. The government's commitment to achieving 6% real GDP growth per year reflects an ambitious goal that necessitates holistic policy responses.

  1. Balancing Growth and Social Impact: Striking a balance between economic growth and social welfare is crucial for sustainable development. The success of economic reforms will be measured not only in GDP figures but also in improved living standards, reduced poverty rates, and enhanced social inclusivity.

Long-Term Considerations

Investor Social Responsibility: Investors may factor in socio-economic impact when evaluating opportunities, contributing to sustainable development goals. Investments that align with poverty alleviation programs and social impact initiatives may gain favor among investors committed to responsible investment practices.

Example: The success of poverty alleviation programs in alignment with economic reforms will be pivotal in achieving a balance between growth and social impact.

Key Takeaways

Fast-Moving Consumer Goods (FMCG)

Consumers are placing greater emphasis on affordability when making purchasing decisions.

FMCG companies should listen to their customers even more closely than ever. Downturns can present opportunities for adjusting their pricing strategies, introduce smaller pack sizes, and offer value-added promotions to cater to budget-conscious consumers without compromising product quality.

Foreign FMCG giants such as Nestle, have reported historic losses due to the effects of foreign currency denominated imports and the low returns. Even though sales volumes are still significant, the naira currency devaluation has caused a massive loss to these FMCGs.  Everyday consumers are seeking more locally produced and less expensive alternatives to their most popular goods purchased.

Local FMCG players will continue to be the popular choice during economic downturns currently ongoing in Nigeria. However, these companies are also not insulated from the overarching issues of the business landscape and also need government intervention to successfully meet the ever-growing demand of the Nigerian consumers. 

FMCG brands should prioritize building trust and credibility through transparent product information, customer reviews, and reliable after-sales support to reassure consumers and stimulate online purchasing behavior.

The marketing and retention strategies beauty & cosmetic brands deploy must be customized effectively to female and Gen Z categories specifically.

MCG pharmaceutical brands should always ensure product authenticity and quality. There also has to be a priority to keep to regulatory standards to combat counterfeit drugs with ‘whistleblower’ incentive schemes to repel bad actors in the market. 

Banking and Fintech

While the African fintech sector continues to experience some growth and innovation, challenges such as funding constraints, regulatory issues, and economic uncertainties require concerted efforts from stakeholders to foster a resilient and sustainable fintech ecosystem across the continent.

While the African fintech sector continues to experience some growth and innovation, challenges such as funding constraints, regulatory issues, and economic uncertainties require concerted efforts from stakeholders to foster a resilient and sustainable fintech ecosystem across the continent. 

Addressing the lower reserves of local and foreign currencies requires comprehensive policy interventions, prudent management strategies, and enhanced transparency to stabilize the economy, mitigate inflation, and promote sustainable growth in Nigeria.

With the lifting of the cryptocurrency ban in Nigeria, there is an expectation that it  will drive demand for liquidity with banks as avid crypto users will look to liquidate their crypto assets seeking local cash currency. *Recent news on government action against Binance, a cryptocurrency platform which has severely impacted cryptocurrency usage in Nigeria. See section on Investments for more details.

The funding landscape in 2023 is estimated to be down by around half compared to the previous year, leading to a growing "startup graveyard" in Africa.

Investors are forced to seek alternative viable investment options outside of fintech to reduce oversaturation and key risk.

While there is still a very small number of exits in the Fintech space, it is still seemingly the leading and safest choice for African investment in technology.

CleanTech and HealthTech are emerging as next near favorites following their high performance in attracting funding for 2023.


Fostering transparency, collaboration, and regulatory compliance, Africa can build a robust and sustainable startup ecosystem that drives inclusive growth and prosperity across the continent.

There needs to be more involvement with local investment and venture capital operators. Beyond cash, more resources and support should be given to founders building in Africa.


Cryptocurrency seems to be the most promising investment option for Nigeria despite the controversy that surrounds it.

Investors are now placing greater emphasis on assessing the long-term sustainability and growth potential of tech ventures.

Agribusiness, Infrastructure and the creative sector are prime alternatives attracting investors to the Nigerian market.

Investment strategies with broader socio-economic goals will be instrumental in shaping a prosperous future for Nigeria.

Consumer Habits and Economic Influence

Economic fluctuations are influencing consumer habits, leading to sharp decreases in spending on luxury and entertainment products and services. 

Non-essential products by definition from the average Nigerian consumer, are increasing in number.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

2024 Enterfive Inc. All Rights Reserved

Manage CookiesTerms of ServicePrivacy Policy