Nigerians Shift to Made-in-Nigeria Products as Imported Goods Become Too Expensive

Introduction

In recent months, Nigerians have increasingly turned to locally-made products as the soaring cost of imported goods, driven by currency depreciation and economic pressures, forces a shift in consumer behavior. What was once a matter of preference has now become a necessity, with households adapting to tighter budgets by embracing homegrown alternatives.

This trend was a key discussion point in a recent episode of Drinks and Mics, a Nairametrics podcast hosted by Ugodre Obi-Chukwu, alongside co-hosts Arnold Dublin-Green and Tunji Andrews. The episode featured insights from Oler Oladele, founder of the MoneyWit Club, who highlighted how Nigerian families are adjusting to economic realities.

The Rising Cost of Imports and Consumer Adaptation

With Nigeria’s inflation rate hitting 34.8% in early 2025—a two-decade high—many consumers can no longer afford foreign goods. Oler Oladele noted:

“When we talk about macroeconomic numbers, it’s easy to get lost in all the data and forget the real people behind the numbers. But the real impact is on Nigerians themselves. Beyond forex depreciation or GDP, we have to ask: how are people actually living?”

The answer lies in changing shopping habits:

• Decline in overseas shopping: Fewer Nigerians are importing goods from the U.S. or taking shopping trips to Dubai.
• Shift to local alternatives: Consumers are unknowingly buying Nigerian-made versions of products they once imported.
• Reduction in import volumes: Reports indicate Nigeria’s recent balance of payments surplus was driven more by reduced imports than increased exports.

Tunji Andrews shared a personal example:

“I was at the supermarket buying cereal for my kids. I picked a nicely packaged brand, and someone pointed out, ‘That’s the imported one.’ I didn’t even know we had a Nigerian version. That’s how much substitution is happening.”

Economic Reforms and Their Impact

The shift in consumer behavior follows major economic reforms introduced by President Bola Tinubu’s administration, including:

• Fuel subsidy removal (leading to higher petrol prices)
• Exchange rate unification (causing naira depreciation)
• Partial withdrawal of electricity subsidies

While these reforms have improved policy credibility, they have also contributed to rising living costs. Fuel prices remain a major concern, as Oler explained:

“If oil prices drop but the naira also weakens, that’s when things get tricky.”

However, inflation’s bite may be softening in some sectors as Nigerians increasingly opt for local substitutes, reducing reliance on expensive imports.

The New Reality: Economic Humility and Resilience

The economic downturn has forced many Nigerians to reprioritize spending. Oler noted:

“A lot of people can no longer afford to buy new cars. But it’s not just the big stuff. Even buying kitchen towels has changed. The economy has humbled a lot of people.”

Even wealthier households are feeling the pinch, with domestic staff influencing brand choices due to affordability concerns.

Is the Exchange Rate Still the Biggest Threat?

During the podcast, Ugodre Obi-Chukwu asked whether the weakening naira remains the primary economic challenge. Oler responded:

“Not in the same way. Consumer patterns have adjusted; people are navigating around it.”

This adaptability highlights Nigeria’s economic resilience—rather than despairing over high import costs, Nigerians are finding ways to survive and thrive with local alternatives.

Conclusion: A New Era of Consumption

Nigeria’s economic landscape is undergoing a profound transformation, not just in policy but in everyday life. As imported goods become unaffordable, Nigerians are embracing made-in-Nigeria products, reshaping consumption patterns in ways that could boost local industries in the long run.

The real story is not just about inflation or exchange rates—it’s about how ordinary Nigerians are adapting, innovating, and finding new ways to sustain their households in challenging times.

Watch the Full Discussion

For deeper insights, check out the Drinks and Mics podcast episode featuring Oler Oladele on Nairametrics