In some interesting data, the Oxford Business Group revealed through a research that Nigeria’s retail Industry has attracted about N200billion in investments over the last two years (see below). If you have been wondering why we are seeing a spread of large shopping malls in Nigeria it is because as a Nation we have shown to posses a strong purchasing power. Besides that we buy most of our retail products with cash unlike other societies where credit cards are used. This means the potential is so much for Growth because as our banks continue to increase their balance sheet size at produce more retail products such as credit cards more people will shop.
Investment in the Nigerian retail market has reached an all-time high of over N200 billion within the the last two years owing to rising purchasing power and the huge potential of the nation’s economy.
The Oxford Business Group (OBG), which revealed this in a report made available to THISDAY, noted both foreign and local investors were dramatically expanding their domestic retail footprint in the country. OBG believed investors were flocking to the retail sector as a result of Nigeria’s potential, a large population, positive macro-economic growth and a strong appetite for consumer goods.
According to the group, “By the end of June 2012, Shoprite the continent’s biggest retailer opened its fifth shop in Nigeria, and another two in 2013. Shoprite, has outlined plans to open up to 700 stores in the country, and Massmart, South Africa’s second-largest retailer and partly owned by Walmart, has announced that it intends to increase its presence from two to 20 stores.