One question that our organization typically gets asked is what the size of Nigeria’s market is. Many marketing brochures talk about a total population pushing 200 million people, but neglect to talk about the effective purchasing power of each of those people. Nigeria’s true market size is really the number of people who are able to spend discretionarily once they get past spending on the essential commodities.
In collating our quarterly Jollof Index data over three years from July 2016 to June 2019, we have observed that majority of Nigerians spend a high percentage of their income on food, in line with data from Euromonitor which put it at 58% in 2018. In July 2019, SBM decided to test this out and embarked on a survey that took us to Ibadan, Suleja, Abuja, Kaduna, Kano, Jos, Makurdi, Port Harcourt, Owerri, Onitsha, Warri, Benin City, and Lagos. We sought to know the income distribution of our 1,633 respondents. The income distribution follows a normal Bell Curve as can be expected in such a random survey. 7% of our respondents earn more than ₦120,000 per month, while 6% of them earn nothing.
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