Inflation is often seen as an economic villain. It erodes purchasing power, drives up living costs, and strains household budgets. In Nigeria, where inflation has hovered at double-digit levels for several years, the pain is visible across every market, from food stalls to fuel stations. Yet, amid these pressures, some businesses have not only survived but thrived, OLUWAKEMI ABIMBOLA writes.

Across the country, a pattern has emerged: enterprises that supply essential goods and services, or that enable cost-saving and efficiency, tend to flourish when prices surge. These businesses have turned economic adversity into opportunity by understanding shifting consumer behaviour and leveraging technology and innovation.

Nigeria?s inflation challenge

Inflation in Nigeria is a complex story shaped by multiple factors, exchange rate volatility, insecurity in food-producing regions, high logistics costs, and dependence on imports. According to the National Bureau of Statistics, inflation reached over 30 per cent in 2025, the highest level in two decades.

The removal of fuel subsidies, naira depreciation, and global commodity price spikes have combined to drive up the prices of essentials. For consumers, this means higher food and transport costs. For businesses, it means rising production expenses and squeezed margins.

But not all sectors are suffering. Some industries have shown remarkable resilience, finding ways to adapt and grow. Economists say these firms succeed because they provide essential needs, control costs effectively, and pass on price increases without losing customers.

Dr. Ifeoma Okeke, an economist at the University of Lagos, observes:

?Inflation punishes inefficiency but rewards adaptability. Nigerian companies that have embraced innovation, especially those in food production, technology, and financial services, are turning inflation into a growth opportunity.?

Food and consumer goods: Everyday necessities never fade

Food is the one expense Nigerians cannot avoid, regardless of inflation. This explains why fast-moving consumer goods companies have remained resilient.

Firms like Nestl? Nigeria, Unilever Nigeria, and Dangote Sugar Refinery continue to dominate store shelves despite rising input costs. Their products, from milk and seasoning cubes to beverages and flour, are staples in most homes. Consumers may switch brands or reduce quantities, but demand rarely disappears.

The so-called ?sachet economy? has become a survival strategy. Producers now sell smaller, more affordable portions of milk, detergents, and beverages to maintain volume sales among cash-strapped consumers.

?We realised people still want quality products but in sizes they can afford daily,? says a Lagos-based FMCG distributor. ?Sachet packaging has kept our sales steady despite inflation.?

Local food producers have also benefited from government import restrictions, which make foreign goods more expensive. Companies that source raw materials locally are less vulnerable to exchange rate shocks and can maintain more stable pricing.

At the retail end, open markets, mini-marts, and discount stores are thriving as consumers seek cheaper alternatives to supermarkets. The resilience of the consumer goods sector underscores a simple truth: when money loses value, people prioritise food and hygiene over luxury.

Agribusiness: Inflation as an incentive for local production

Nigeria?s inflation story is inseparable from food. With imported food prices soaring, local agriculture and agribusiness have become both a necessity and an opportunity.

Farmers and processors benefit when food prices rise, provided they can control production costs. Companies like Flour Mills of Nigeria, Olam Agri, and Presco Plc have invested heavily in local sourcing of rice, palm oil, and grains.

Start-ups such as ThriveAgric, FarmCrowdy, and XchangeBox are also transforming agriculture through technology, linking farmers to markets, providing credit, and ensuring faster payments. These platforms are helping farmers overcome one of the biggest inflation-era challenges: liquidity.

Dr Chuka Eze, an agribusiness consultant, explains:

?When inflation pushes food prices up, it?s an opportunity for efficient producers. Local farmers, processors, and distributors who can shorten supply chains make more profit and create jobs.?

Agro-processing companies have particularly thrived as the country turns to import substitution. The rise in packaged local rice, vegetable oil, and cassava-based products shows how inflation can spur domestic industrialisation.

The government?s various interventions, such as the Central Bank?s Anchor Borrowers? Programme, have also encouraged agribusiness expansion, even if policy inconsistencies persist.

Energy sector: Winners in a deregulated market

The energy sector has been one of the biggest beneficiaries of Nigeria?s inflationary environment. The removal of fuel subsidies in 2023, coupled with the liberalisation of electricity tariffs, opened new profit channels for companies across the value chain.

Oil and gas firms like Seplat Energy, Ardova Plc, and TotalEnergies Nigeria have seen strong earnings, partly due to higher pump prices and increased export revenues from crude oil.

However, the real transformation has been in renewable energy. With diesel prices skyrocketing, solar companies are thriving. Firms such as Arnergy, Lumos Nigeria, and Daystar Power are deploying decentralised solar systems to businesses and homes.

?Every inflation wave drives more customers our way,? says Femi Adepoju, a Lagos-based solar installer. ?People now see renewable energy not as a luxury but as a necessity.?

Inflation has also fuelled demand for energy efficiency. Manufacturers and small businesses are adopting hybrid power systems, solar plus diesel, to cut costs. This shift has made energy innovation one of the fastest-growing segments of Nigeria?s private sector.

Telecommunications: Data becomes the new essential

Even during economic hardship, Nigerians hardly disconnect from the internet. Mobile data has become as essential as food and electricity.

Telecom operators like MTN Nigeria, Airtel Africa, and Globacom have continued to post strong revenues despite inflation. Their success lies in the indispensability of connectivity, from business operations to education and entertainment.

As work, learning, and commerce increasingly move online, data consumption has soared. Consumers may reduce discretionary spending but continue to buy data bundles.

?Telecoms have become the oxygen of the digital economy,? says technology analyst Aisha Salami. ?Inflation or not, people must stay connected.?

Telecom infrastructure providers are also expanding. Companies like IHS Towers and MainOne are investing heavily in broadband and data centres to support the growing demand. For many Nigerians, digital connectivity is no longer optional; it?s a survival tool in an inflation-hit economy.

Financial services and fintech: Protecting value in tough times

Inflation changes how people save, spend, and invest. This shift has boosted activity in the financial services and fintech sectors.

Rising interest rates have improved margins for commercial banks, while digital payment providers have seen a surge in transactions as cash loses value. Platforms like Moniepoint, Opay, and PalmPay have become household names, serving millions of Nigerians looking for convenient ways to pay and transfer money.

Inflation has also increased demand for financial planning. Investment platforms such as Cowrywise, Bamboo, and Trove are helping retail investors hedge against naira depreciation by offering access to dollar-denominated assets and mutual funds.

?People are more financially aware now,? says fintech analyst Daniel Adeyemi. ?They?re using technology to protect value, manage spending, and earn passive income.?

Small businesses, particularly in the informal sector, have benefited from fintech innovation. Access to credit and instant payments has kept many afloat despite rising costs. Inflation, paradoxically, has accelerated financial inclusion in Nigeria.

Healthcare and pharmaceuticals: essential spending that endures

No matter how high prices climb, Nigerians cannot ignore their health. This reality has made healthcare and pharmaceuticals one of the most inflation-resistant sectors.

Private hospitals, diagnostic centres, and pharmacies are experiencing increased patronage as public healthcare facilities struggle with overcrowding and underfunding. The demand for essential drugs, medical consumables, and personal care products remains strong.

Local pharmaceutical firms like Emzor Pharmaceuticals, Fidson Healthcare, and May & Baker have benefited from import substitution. As the cost of foreign drugs soars, locally manufactured alternatives have gained popularity.

Digital health startups are also bridging gaps. Platforms such as Remedial Health, DrugStoc, and Helium Health use technology to streamline drug supply and hospital management systems, ensuring efficiency and affordability.

?People are cutting costs everywhere else, but not on basic healthcare,? says Lagos pharmacist Kehinde Ajayi. ?Our sales have remained steady, especially for chronic medications.?

Real estate and construction: Tangible assets as a hedge

Inflation erodes currency value but often boosts the appeal of real estate. Nigerians with disposable income are increasingly investing in land and property as a store of value.

Although rising costs of cement, steel, and labour have affected developers, property prices and rents continue to rise, especially in Lagos, Abuja, and Port Harcourt. Companies like Dangote Cement and BUA Cement have reported strong sales as both public and private projects expand.

?When inflation hits, real estate becomes an inflation hedge,? says property consultant Bode Alade. ?People prefer to hold tangible assets rather than watch cash lose value.?

The demand for short-let apartments, warehouses, and co-working spaces has also risen, driven by e-commerce and hybrid work patterns. Despite the high cost of financing, the real estate sector continues to attract investors seeking stability.

Technology and digital solutions: Efficiency as survival

For many Nigerian businesses, inflation has become a trigger for digital transformation. Rising costs have forced companies to automate, digitise, and adopt more efficient systems.

Software and IT service firms have benefited from this shift. Local technology providers like Seamfix, RelianceHMO, and Softcom are offering digital tools for payroll, record management, and customer engagement.

E-commerce and logistics companies such as Jumia, Kobo360, and TradeDepot have also grown by helping businesses reach customers and manage distribution more efficiently.

?Inflation is accelerating Nigeria?s digital economy,? says tech entrepreneur Bolanle Oshin. ?When costs rise, firms look to technology to cut waste and stay competitive.?

Automation, remote work solutions, and cloud services have become essential. Even small businesses are adopting mobile apps to manage sales and inventory, a trend that is likely to endure long after inflation subsides.

Repair, recycling, and second-hand markets: The frugal economy

Inflation changes consumer psychology. Nigerians are now more frugal, leading to a boom in repair services, recycling, and second-hand trade.

Tailors, cobblers, phone repairers, and mechanics have all seen increased demand as consumers opt to fix rather than replace items. Online resale platforms and open markets for fairly used clothes, electronics, and furniture are thriving.

?The circular economy is becoming mainstream,? notes sustainability advocate Chidinma Opara. ?When people can?t afford new, they buy used. When they can?t replace, they repair.?

Recycling firms are also benefiting. Companies that process plastics, metals, and paper are seeing higher volumes as manufacturers seek cheaper raw materials. Inflation has, unintentionally, created a more resource-efficient economy.

Education and skills training: Learning as an inflation shield

With living costs rising, many Nigerians are turning to education and skill acquisition to improve their earning potential.

Vocational centres, coding boot camps, and online learning platforms have experienced strong enrolments. Platforms like AltSchool Africa, Coursera, and Udemy are popular among young Nigerians seeking new income streams or remote jobs.

?Inflation pushes people to upskill,? says career coach Fisayo Akinyemi. ?When expenses go up, people realise the best way to fight inflation is to earn more.?

Private schools and tutorial centres have also seen increased demand, as parents prioritise education despite rising fees. The resilience of the education sector shows that Nigerians view knowledge as an enduring investment, not a luxury.

Surviving inflation: Common threads among winners

A close look at Nigeria?s inflation-proof businesses reveals key characteristics that explain their success:

Essential demand: They provide products or services people cannot easily forgo, like food, healthcare, energy, and connectivity.

Adaptability: They adjust pricing, packaging, or delivery to match consumer purchasing power.

Local sourcing: They rely less on imports, minimising exposure to currency swings.

Technology adoption: They use innovation to improve efficiency and reach more customers.

Trust and consistency: In unstable times, brand reliability becomes a competitive edge.

As Dr Okeke notes, ?Inflation separates the resilient from the rigid. Those who innovate grow stronger; those who resist change struggle to survive.?

Conclusion: Inflation as a catalyst for reinvention

Nigeria?s inflation crisis has undoubtedly strained households and businesses alike. Yet, it has also reshaped the economy, accelerating localisation, digitalisation, and entrepreneurial innovation.

From farmers and fintechs to solar companies and digital educators, inflation has created unexpected winners. Their stories prove that with agility and creativity, adversity can become opportunity.

In the long run, the sectors thriving today could form the backbone of a more self-reliant Nigerian economy, one less dependent on imports and more anchored on innovation, technology, and resilience. (The PUNCH)

Update news