The soaring cost of foreign goods, spurred by currency depreciation and mounting import expenses, is driving a shift in Nigerian consumer behavior. What was once a simple preference has turned into a necessity. As a result, Nigerians are increasingly turning to locally made products, adapting their household spending to cope with the economic pressures.

This change is clearly visible in everyday purchasing decisions — from the supermarket aisle to the family dining table. In a recent episode of Drinks and Mics, a podcast hosted by Ugodre Obi-Chukwu with co-hosts Arnold Dublin-Green and Tunji Andrews, Oler Oladele, founder of MoneyWit Club, discussed how Nigerians, especially families, are adjusting to the economic challenges.

Adapting to a Tightening Economy

Oler emphasized that, while economic statistics can be overwhelming, the real story lies in the everyday lives of Nigerians. “The numbers are important, but the real impact is on people’s daily lives. We need to ask, How are Nigerians actually living?” she explained during the podcast.

According to Oler, Nigerian consumer behavior is undergoing a significant transformation. “How many people are still shopping from the U.S. or taking trips to Dubai for luxury goods?” she asked. “Those days are over — or at least, they’re drastically reduced.”

Shifting Consumption Patterns and Import Decline

This transformation is not just anecdotal. Reports indicate a significant decline in imports, which analysts link directly to Nigeria’s balance of payments surplus. Interestingly, this surplus resulted not from rising exports, but from a notable reduction in imports. This decline reflects how Nigerians are changing their consumption habits.

Oler highlighted this shift by pointing out, “I read that the surplus was caused not by increased exports, but by a decrease in imports. That shows just how much consumption patterns are changing.”

Reforms and Rising Inflation: A Double-Edged Sword

The shift in consumption comes after President Bola Tinubu’s administration rolled out bold economic reforms starting in May 2023. These reforms, including the removal of fuel subsidies, the unification of exchange rates, and cuts to electricity subsidies, have shaken Nigeria’s economy. While these changes have boosted policy credibility and improved market efficiency, they have also led to soaring costs of living.

By early 2025, inflation reached 34.8%, the highest in two decades, with food and energy prices driving the surge. Fuel prices have been a particularly painful issue for households.

Oler explained that although currency devaluation tends to drive up prices and reduce imports, fuel prices are where most Nigerians feel the most pain. “When oil prices drop, but the naira weakens, that’s when it gets really tough for households,” she warned.

Adapting to the New Normal

Despite these challenges, Nigerians are responding with resilience. Many have shifted from imported goods to locally made products, which are more affordable in the current economic climate. This shift has helped alleviate the impact of rising costs.

Tunji Andrews shared a personal experience to highlight this shift. “I was at the supermarket buying cereal for my kids, and I picked a brand I thought was just a nicely packaged option,” he recalled. “Someone pointed out that it was imported. I didn’t even realize there was a Nigerian version. That’s how much substitution is happening.”

Rather than simply enduring price hikes, Nigerians are actively seeking affordable, local alternatives. As demand for foreign products declines, local manufacturers are filling the gap.

Humility and Reprioritization in the Face of Economic Pressure

Oler further explained how the economic shifts have forced Nigerians to reevaluate their priorities. “Many people can no longer afford new cars. It’s not just about big-ticket items — even things like kitchen towels have changed,” she observed. “I sat with some mothers recently, and they told me their nannies now influence their purchasing decisions based on price. The economy has humbled a lot of people.”

She emphasized that this shift goes beyond switching brands. It’s a complete reassessment of what families truly need versus what they can afford. “The elite may not feel the pinch unless they start shopping like everyone else. But if you’re buying for a family every week, you’ll see how much has changed,” Oler said.

Is the Exchange Rate Still the Major Threat?

During the podcast, Ugodre asked whether the weakening exchange rate continues to be a significant threat to Nigerians. Oler responded confidently: “Not really, at least not in the same way. People have adapted, and they’re navigating around it.”

This observation underscores a broader transformation in Nigeria’s economic landscape. It’s not just about the reforms and policy changes, but about how Nigerians are coping with and adapting to the new economic environment.

Economic Resilience and Adaptation: A Bigger Story

The real story of Nigeria’s economic transformation lies not in the numbers but in how ordinary Nigerians are responding to the pressures of rising costs. As imported goods become increasingly expensive and foreign exchange pressures persist, Nigerians aren’t succumbing to despair. Instead, they are adapting — and thriving in new ways.

Oler summed it up perfectly: “This isn’t just theoretical anymore. People feel it every day. The true story behind all these reforms and market changes is a total reshaping of how Nigerians consume, survive, and adapt.”

As inflation continues to rise and the cost of imported goods remains high, Nigerians are finding creative solutions to maintain their standard of living. From grocery shopping to daily necessities, this shift toward locally made products is not just a trend — it’s a clear sign of economic resilience and adaptation.