The global pet care market is foretold to improve in the forthcoming years as matched to the preceding years and will showcase better sales in various market segments. It is estimated that the global pet care market will grow at a CAGR o…
BMI View: Nigeria will endure an economic contraction in 2016, driven by external and domestic
challenges, exacerbated by a series of controversial monetary and fiscal policy developments. We believe
that the economy bottomed out in the second quarter of the year and, therefore, forecast a 0.8% real GDP
contraction in 2016 as a result. Furthermore, inflation has risen sharply over the past several months, and
averaged 13.3% over the first six months of 2016, rising from 9.6% in January to 16.5% in June. While this
may impact negatively on household spending, overall consumer spending patterns are unlikely to change
significantly, meaning that any increases in non-essentials spending will be driven primarily by the highestearning
Key Views And Developments
? We forecast consumer price inflation to average 15.1% in 2016, up from last year's estimated 9.0%,
stretching household budgets and reducing spending on non-essentials.
? We hold to our view that the Nigerian naira will strengthen before the end of 2016, as macroeconomic
conditions will encourage a return in investment, and therefore expect investment in the retail sector to
? Almost 2.2mn households will be in the USD10,000-plus income bracket by the end of 2016,
representing 4.1% of the total.
? Mstore owner, Dubai-based MidCom Group, announced in August 2016 that it would be investing a
further USD50mn in expanding its mobile phone and electronic goods outlets across Africa over the next
three years, including building its presence in Nigeria.
? US-based hair beauty retailer Her Imports reported in July 2016 that sales from its new store in Lagos
were four times higher than projected, following its first month of trading.