COUNTRY PROFILE
Discover more about the Nigeria market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.
$70.4 million
In 2024, U.S. processed food exports to Nigeria reached US$70.4 million
#1
Nigeria is the most populous country in Africa
236.7 million
total population in 2024
Euromonitor reports that lack of economic diversification, soaring unemployment, and a persistently high inflation rate cloud the economic outlook for Nigeria. Despite rising government revenues due to elevated oil prices, public debt continued to increase over the year, with the country’s fiscal health deteriorating further. However, investments into the non-oil sector are set to foster job creation within the country, while tightening monetary policy is expected to reduce inflation.
USDA’s Office of Agricultural Affairs (OAA) in Lagos, hereinafter referred to as “FAS Post Lagos,” reports that Nigeria is the most populous country in Africa and has the largest economy on the continent. Demographically, its population is relatively young and urbanizing. According to Statista, one of the world’s leading market and consumer data providers, Nigeria’s population from the year 2025 to 2050, is projected to double in size to over 400 million, making it the third most populous country in the world behind India and China.
The country maintains a ban on some food and agricultural products including frozen poultry, beef, pork, eggs, vegetable oils, and spaghetti/noodles. Major consumer-oriented imports included dairy products, seafood, spirits, soups, bakery ingredients, and other food preparations. While there is a large potential consumer base, purchasing power and patronage of the hotel, restaurant, and institutional (HRI) sector has been challenged by a depreciating naira, insecurity, foreign exchange scarcity, inadequate public infrastructure, and supply chain constraints.
U.S. processed food exports to Nigeria declined 36% to US$45.8 million in 2023, ranking it third in Sub-Saharan Africa. In 2024, U.S. processed food exports to Nigeria bounced back with 58% growth and reached US$70.4 million.
Top U.S. processed food exports to Nigeria in 2024 included:
Access the latest FAS GAIN Reports
$4.7 billion
estimated retail sales of packaged food in Nigeria in 2024
24%
Nigerian supermarkets reported a 24% increase in sales in 2023 over 2022
$13.5 billion
forecasted retail sales of packaged food by 2029
According to Euromonitor, retail sales of packaged food in Nigeria are forecast to reach just over US$4.7 billion in 2024. By 2029, Euromonitor forecasts that retail sales of packaged food in Nigeria will reach US$13.5 billion.
FAS Post Lagos reports that in 2024, foreign exchange scarcity and currency devaluation led to weak consumer purchasing power, placing negative pressure on the retail foods industry. These factors have decreased private sector investment and weakened household earnings and spending.
The sector consists of supermarkets, convenience stores/small groceries, and traditional open-air markets. Though the traditional markets have the largest percentage of total retail foods share, changing consumer tastes and eating patterns, an increasing demand for convenient foods and beverages, and increasing consciousness of food safety and nutritional values have contributed to the growth of modern retail. In addition, high transport costs and insecurity are making it more convenient and safer for buyers to purchase goods under one roof. Euromonitor reported a 24% increase in supermarket sales in 2023 compared to 2022.
FAS Post Lagos reports that while Nigeria has Africa’s largest potential consumer base, consumer purchasing power, and patronage of the hotel, restaurant, and institutional (HRI) sector, has been stunted. Despite these challenges, hotels are developing more cafés, bars, restaurants, and catering services to attract customers. Due to a weakened currency making international travel more expensive, middle-class consumers are increasingly looking inside Nigeria to visit nice restaurants, book celebrations, and go on “staycations.”
$46.9 million
intermediate exports to Nigeria from the U.S. in 2024
22%
of the manufacturing sector falls under food processing
80%
of the larger food processing and ingredient firms in Nigeria are based in Lagos.
Small- and medium-sized enterprises (SMEs) dominate the domestic food processing industry. The sector also has some large international companies operating inside Nigeria. It is difficult for the local food processing industry to compete with imported brands due to weak infrastructure, scarcity of raw materials, and high operating costs. International brands are perceived as higher quality and are frequently cheaper than domestically processed foods. FAS Post Lagos estimates that about 80% of the larger food processing, intermediate foods, and ingredient companies are headquartered in Lagos.
FAS Post Lagos reports that U.S. wine and distilled spirits have an established presence and distribution network in Nigeria. Wheat-based bakery products and food preparations continue to grow in popularity, especially as hotels, cafés, and Western-style restaurants grow. While the government’s trade restrictions limit imports of beef, pork, and poultry, there is indication of strong consumer demand for poultry amid the proliferation of Quick Service Restaurants specializing in chicken items.
Top intermediate products exported included ethanol, corn-soy-milk blends, essential oils and flavorings, finishing agents, yeasts, dextrins, peptones and proteins, vegetable oil, sugar, sweeteners, and beverage bases.
