Nigerians Switch to Locally Made Products as Imported Goods Prices Soar

As Nigeria battles a record high inflation and a fall in currency value, more citizens are turning away from imported products in preference of made-in-Nigeria products.

In fact, importation of finished goods increased by a staggering 139% year-to-date to stand at ₦5.74 trillion in quarter one 2024, according to reports from the National Bureau of Statistics.

Consequently, the Central Bank of Nigeria (CBN) has tightened foreign exchange restrictions on 41 items of imported products. The step is aimed at promoting local production and reducing the country’s dependency on imported products.

The shift has become a silver lining for Nigerian entrepreneurs and small and medium enterprises (SMEs), the majority of whom have seen a major boom in patronage.

Local brands across various sectors—ranging from cosmetics to foodstuffs—suggest that higher prices of foreign goods have rendered their domestically manufactured equivalents more attractive to buyers.

CEO of Natures Cosmetics Limited, Mrs. Abiola Olumodeji, disclosed that her business has expanded steadily with growing demand for locally made and affordable skincare products.

“Now people see that made-in-Nigeria doesn’t mean poor. In fact, it means accessible and constant,” she intoned.

In addition, Nigeria’s export of non-oil goods totalled $2.7 billion in the first half of 2024 and was spearheaded by cocoa beans, urea fertilizer, and sesame seeds. It is all part of a bigger trend of export-oriented production spearheaded by indigenous innovation.

Despite such progress, manufacturers still face difficulties. High-cost manufacturing—fuelled by poor infrastructure, unstable power, and limited access to cheap credit—is still a risk to the competitiveness of Nigerian products.

According to the Manufacturers Association of Nigeria (MAN), without or even with targeted interventions, issues like these could slow the pace of the made-in-Nigeria phenomenon. “It’s not a question of people buying local. We need to have strong policy support, invest in infrastructure, and financing specifically for small manufacturers,” the association emphasized.

Experts are of the opinion that if the government can maintain its current policies while addressing these systemic problems, Nigeria could be on its way to a more self-sustaining and resilient economy. Consumer activism and public campaigns are also helping to shift attitudes towards domestic products.

Ultimately, the current economic reality has presented Nigeria with the opportunity to leverage its industrial power. With proper support and sustained consumer faith, made-in-Nigeria would move from being a need to being an identity of pride.