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LBS outlook for 2020: Convenience to drive demand, Squeezed consumer income will negatively impact purchase spend

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President Muhammadu Buhari, and Bismarck Rewane

The Lagos Business School (LBS) economic outlook for 2020 indicates amidst a raft of new policies and external sentiments that disposable income will be tight for 2020, breeding a sober consumer base that will judiciously allocate spends to what is relevant and important. The outlook further highlights that convenience will drive purchase choice among millennia; negatively impacting the revenue of weak brick and mortar stores.

According to the report dwindling per capital income will be pegged at $2,236 in 2020 compared to a 2014 high of $3,222. It also says VAT hike of 7.5% will result in high commodity prices. In sum, a rising commodity price combined with the reality of dwindling per capital income will yield an austere economic environment in the new year.

The onus is on businesses to be innovative, reposition to gain preference as Nigerian consumers run through a lean period, before several initiatives aimed at improving the lots of the population begin to yield results.

The Lagos Business School economic outlook for 2020 emerged out of a Breakfast Session spearheaded by Bismarck Rewane, the Managing Director and Chief Executive Officer of Financial Derivatives Company Ltd (FDC). Highlights of the session include key events in 2019 such political and economic events in the UK and the Eurozone, US-Chinese trade logjams, global oil price, impact of border closure and the Monetary Policy Rate in Nigeria, and more.

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