Mutiu Iyanda

A Research and communications professional with a special interest in quantitative and qualitative methods knowing social and communication issues around the world. I work with Enterprations Limited, Lagos Nigeria, a management consulting firm.

Why you should be interested in Nigeria’s N15.7 trillion BOP Market

8. Dec 2017

Nigeria, Kenya and South Africa are the countries with the largest number of people with low socioeconomic status. These three countries are home to over 16 million households with an annual disposable income below US$2,500, having a combined total spending of US$41.4 billion in 2016, according to Euromonitor in its latest report. Nigeria’s BOP market is embedded with diverse spending patterns and promising future. Euromonitor says:

  • Paying for food absorbed a huge share of BOP wallet, which translates to a very weak discretionary spending power for the BOP in Nigeria
  • BOP households accounted for 9.0% of Nigeria’s overall alcoholic beverages and tobacco market in 2016
  • Nigeria’s BOP will expand to account for 23.2% of total households and 8.5% of the country’s spending in 2030

In 2016, Nigeria’s BOP consumers spent 70.6% of their annual disposable income on food and non-alcoholic beverages followed by housing which gulped 7.8% of their income. By 2018, the consumers at the market have been projected to reach 49 million while annual spending will translate to N15.7 trillion. The spending is premised on 2016’s over N800, 000 expended by a consumer. Enterprations has earlier analysed the market and reported that existing and prospective entrepreneurs need to devise innovative solutions for the market.