Nigeria’s fast-moving consumer goods (FMCG) sector is witnessing a notable rebound in 2025, as consumption and value growth return to positive territory following months of economic strain and fluctuating prices.

Speaking at the third yearly NielsenIQ Breakfast Conference held in Lagos, Associate Director, Joyce Nwachukwu, on the Nigerian Market Overview report, revealed that the market is growing by about 12 per cent, with consumption showing modest but steady gains, a sign that Nigerian consumers remain confident enough to spend despite tightening disposable incomes.

“Consumers are still confident to actually spend, even with their limited income. We are seeing opportunities for consumers to express themselves through employment and purchasing decisions. The land is still green,” she said.

According to data shared by NielsenIQ, Nigeria and Egypt accounted for a significant portion of the region’s FMCG growth, contributing 42 per cent of the total market across Africa. Nwachukwu explained that after a turbulent 2024, marked by price volatility, Nigeria’s FMCG value growth has climbed back from double-digit negative figures to about 5.4 per cent, supported by price stability and improved consumer sentiment.

“Last year, prices were changing almost daily. You’d leave a shop and return to find a different price tag. But this year, we’ve seen a soft landing. Price stability has helped boost consumer confidence and encourage trial of new products,” Nwachukwu stated.

The NielsenIQ report showed that food and beverage categories are the main drivers of the FMCG recovery. While beverages such as beer, spirits, and soft drinks continue to record volume and value growth, the food segment has also rebounded from a 10 per cent decline last year to show positive trends in both consumption and value.

Home and personal care products, on the other hand, remained under pressure, though volumes are improving as consumers reprioritise essential spending. “We are seeing more rational consumption. People are prioritising what truly matters, but value is still growing,” she added.

Interestingly, contraceptives emerged as the fastest-growing FMCG category, reflecting shifts in consumer priorities and innovation in retail marketing. “If you walk into stores today, you’ll notice creative marketing around contraceptives; the category has become one of the strongest performers this year,” Nwachukwu said.

The report projected continued double-digit FMCG growth through 2025, with long-term forecasts showing sustained expansion up to 2027. Under conservative estimates, total FMCG growth could reach 30.9 per cent by year-end and over 40 per cent with intensified marketing and trade activity.

“Nigeria remains a strong investment destination. Consumers are resilient and responsive; when manufacturers innovate, they respond positively. The future is green,” Nwachukwu added.

Senior Manager for Retail Measurement Services, NielsenIQ, Oluwatosin Onayemi, said Nigerian consumers have demonstrated remarkable adaptability in 2025.

According to him, the proportion of Nigerians who feel worse off financially compared to last year has dropped sharply from 75 per cent in 2024 to 36 per cent in 2025, showcasing improved financial outlooks.