KLAIPEDA UNIVERSITY

SOCIAL SCIENCE AND HUMANITIES FACULTY

MANAGEMENT DEPARTMENT

Impact of Covid-19 on Consumer Behavior using Nigeria as a Case Study

Term Paper

Author: SNVA19AK2 Adebayo Haroun Sanni

Supervisor: Lecturer. Aušra Pacevičiūtė

Klaipeda, 2021
 Summary

In today’s world, the COVID-19 pandemic has become a global issue. Because of the connected world,
the virus had the potential to spread around the world, infecting people from various countries and
continents. The COVID-19 pandemic has had enormous social and economic consequences all over the
world. The pandemic also sparked panic in the media, prompting governments to implement new policies
and precautions to limit the virus’s damage and spread. However, as a result of government restrictions
caused consumer behavior to change dramatically, affecting the economy as a whole.

The study examines the impacts of COVID-19 on consumer behavior in Nigeria. To achieve the study’s
objectives a qualitative method was used: analyzing and interpretation of primary data by analyzing and
interpretation of primary data.

Also from the study, we found that the COVID-19 pandemic affected consumer purchase of food and
source of livelihood. For the purchase of food, the pandemic affected the frequency of purchases, the
composition of purchases, e-shop preferences, and food shopping time of consumers. Livelihood was
seriously affected by the pandemic which had a significant reduction in economic activity. All these were
attributed to the Nigerian government’s quick response to curb the spread of the virus. However, to combat the
impact of coronavirus on households, micro and small businesses, the government, private sector, and non-
governmental organizations established several measures.
Relevance of the Study

What began as a local case of respiratory illness in China in 2019, the coronavirus disease (covid-19) has
become a global threat to all economies. The World Health Organization (WHO) (2020), declared Covid-
19 an infectious disease as a global pandemic on March 11, 2020. The disease quickly spread to 196
nations and territories and as a result, most countries made immediate decisions regarding safety
measures and strict restrictions on people’s daily lives, such as social distancing, remote work, working
from home, schools, colleges, universities, and temporary closing business to slow the virus transmission
(Ben Hassen et al., 2020). Covid-19 is an international health challenge that is already having an effect
on the global economy. Hence, the global community is taking several steps to address the medical issue
that is affecting the global economy (Shajada & Ouasim, 2021).

The covid-19 pandemic has had an impact on consumer behavior because it alters social and economic
perspectives in the long run. In the midst of a global pandemic like Covid-19, consumer preferences are
changing, as well as their lifestyle and business environment. The issues that the healthcare system faces
have an impact on people’s living standards and economic stability. COVID-19 is influencing consumer
behaviors, attitudes, and purchasing habits, and many of these changes are likely to persist after the
pandemic. As changing consumer needs and behaviors shape the future of industries, they will present
new challenges and opportunities for businesses (Acee-Eke & Ogonu, 2020). Understanding changing
consumer behaviors is therefore critical for businesses when developing business strategies to adapt to
new and emerging consumer trends (Stanciu et al., 2020).

Globally, the world is still fighting the COVID-19 pandemic. Even before the outbreak, the outlook for
the global economy particularly for developing countries like Nigeria was weak, with global GDP growth
projected to be only 2.5 percent in 2020 (GAIN, 2020). The lack of capacity in Nigeria's healthcare
systems is likely to exacerbate the pandemic and its impact on the economy (Ezeaku & Asongu, 2020).
While many developing countries have recorded relatively fewer cases as of 17th of March, 2022, Nigeria
has 255092 confirmed cases, 2493 active cases, and 3142 deaths (NCDC, 2022). According to Nweze
and Nnadi (2021), as the reality of the covid-19 pandemic dawns on Nigeria, like other countries of the
world, the country canceled flights, events, and virtually everything that necessitates social, religious,
and official gatherings. The economic impact of these measures aimed at reducing virus spread has also
been felt. These effects are likely to have an impact on Nigerians’ consumer behavior.
Problems

All over the world, the Covid-19 pandemic had an effect on consumer behavior as well as the food supply
chain. On the supply side, many countries were facing labor shortages due to lockdowns, border
restrictions, and restrictions on people (Acee-Eke & Ogonu, 2020). Furthermore, The pandemic
interference in supply chains prevents it from entering markets and selling products, resulting in
increased food loss and waste, particularly in perishable products such as fruits, meat, fish, meat, dairy
products, and vegetables. Farmers in many countries were burying perishable items because disruption
has a significant impact on the supply chain. As a result, they are unable to meet the demands of their
customers (Acee-Eke & Ogonu, 2020). Also, during the pandemic, international food markets faced
export restrictions, resulting in instability in global food markets, food shortages around the world, and
rising global food prices. Also, on the demand side, consumers focused on panic buying at the start of
the pandemic due to uncertainties of future shortages. Food is the most essential item for humans, which
is why panic buying is very common consumer response to a crisis (Ben Hassen et al., 2020).

Nigeria has a thriving gig economy as well as a sizable informal sector that accounts for 65 percent of
the country’s economic output. Movement restrictions have not only reduced their consumption of non-
essential commodities in general but have also had an impact on their income-generating capacity as well
as domestic policies implemented to reduce viral transmission i.e. social distancing enforcement (Nweze
& Nnadi, 2021). In addition, many states lacked isolation centers, including Lagos, Enugu, Abuja, Port
Harcourt, Kano, Jos, Bauchi, and Ogun. In all of this, the number of infected patients increased to the
point where a stadium had to be converted into an isolation center. Finally, the Covid-19 outbreak
overwhelmed Nigeria’s economy.

Nigerian governments were expected to protect their citizens from the pandemic, but they failed (GAIN,
2021). Nigeria’s failing public health sector made it difficult for the country to deal with the rapid spread
of Covid-19 disease during the outbreak. However, Nigeria moved from partial to almost all restrictions
on movement, causing people to spend mainly on essential commodities; low expectations of income in
the future particularly among workers in the economy who are employed on a contract basis/ short-term,
and the working poor in the informal economy (Onyekwena & Ekreuche, 2021).

Commercial enterprises were continuously exploring strategies such as market research, product brand,
and friendly pricing regimes in order to advantageously position themselves to outshine their fellow
competitors and enhance consumer loyalty, patronage, and buying behavior in favor of their brand in the
novel COVID-19 pandemic crisis period which has necessitated remote, restricted, and closed work rules
(Acee-Eke & Ogonu, 2021).

The markets have been in a downturn, and the Covid-19 pandemic has curtailed the demand of
consumers. Against this background, the study developed a keen interest in investigating the impact of
Covid-19 on consumer behavior with a focus on Nigeria.

Research question: What factors are necessary to assess the impact of the COVID-19 pandemic on the
consumer behavior in Nigeria?

Object of course paper: The object of the research is the assessment of the impact of covid-19 on
consumer behavior using Nigeria as a case study

Work purpose: The aim of the work is to examine the impact of the COVID-19 pandemic on the
consumer behavior in Nigeria

Tasks of the course work:

1. To examine the concept of COVID-19 and consumer behavior

2. to investigate the impacts of COVID-19 on the consumer behavior in Nigeria

Methods: To achieve the study’s objectives a qualitative method was used. The questionnaire survey
method was used. analysis and interpretation of primary data (qualitative research). The research focused
on consumers in Nigeria.

Structure of this paper: At first, we have the theoretical part were Concept of Covid-19 and consumer
behavior, the evolution of lockdown in Nigeria, the Impact of COVID-19 on Consumer behavior in
Nigeria, and the Policy response. In the second part, we have the connection between covid-19 and
consumer behavior. This part shows the Methodology of research and Analysis of Research Data.

THEORETICAL INSIGHTS INTO CORONAVIRUS AND CONSUMER BEHAVIOUR

1.1 The Concept of Coronavirus (Covid-19)

Three Coronavirus outbreaks have occurred in the 21st century, the most recent being the Corona Virus
Disease of 2019, also known as COVID-19, the second Severe Acute Respiratory Syndrome Corona
Virus (SARS-COV-2) outbreak in 2003 with the outcome of 9906 cases and 8894 deaths worldwide,
while the Middle East Respiratory Syndrome Corona Virus (MERS-COV) outbreak in 2003 resulted in
5500 cases and 960 deaths worldwide. Coronaviruses (CoV) are single-stranded, positive-sense
enveloped RNA viruses belonging to the Orthocoronavirinae subfamily of the Coronaviridae family of
the Nidovirales order. Four of them are distributed coronaviruses that cause the common cold (HCoV-
229E, HCoV-OC43, HCoV-NL63, and HCoV-HKU1) (Peters et al., 2020).

Covid-19 is a new coronavirus from the Betacoronavirus genus of the Coronaviridae family. According
to Lu et al.(2019), It has a 79 percent homology with SARS-CoV and causes mild to severe disease in
humans, including fatal bilateral viral pneumonia. Because it has never been seen in the human
population, it is referred to as a novel coronavirus (Huang, 2020). Bats are the most likely reservoir, with
pangolins being the most likely intermediate animal in the world. Because the pangolin trade is illegal,
it’s possible that they weren’t listed in the Wuhan market’s official registers, making it difficult for
researchers to pinpoint the virus’s origin. According to some researchers, the virus may have been
circulating before, and the market may have served as an amplification setting (Cyranoski, 2020).

Covid-19 was first discovered in Wuhan, Hubei Province, China. It began in the province as a type of
pneumonic disease. Everyone in Wuhan eats large seafood and live animals, implying that the
coronavirus was transmitted from animal to person. The first patients in Wuhan to experience symptoms
were on December 1, 2019. The cases were reported to the WHO country office, and it was discovered
that the virus was a new strain of the SARS-CoV virus from 2002. The virus was given the name Covid-
19 by the WHO on February 11th, 2020. Coronavirus Disease of 2019 is an acronym that stands for
Coronavirus Disease of 2019. The disease’s symptoms were similar to the symptoms of a common cold.
Fever, cough, shortness of breath, and loss of smell are among them. However, the complications are
more serious than the symptoms, as they can lead to pneumonia, acute respiratory distress syndrome,
viral sepsis, kidney failure, and other complications. The complications are said to worsen over time
depending on the person’s medical status (Sohrabi, 2020)

1.2 Covid-19 in Nigeria

The coronavirus reached Nigeria through an infected Italian citizen who came into contact with a
Nigerian citizen who then became infected. Nigeria reported the first confirmed case in late February
2020, after which it spread throughout Lagos, Ogun State, and the Federal Capital Territory (FCT) area
of Abuja and to the other states in the country (Oyeranti & Sokeye, 2020). The virus’s nationwide spread
urged the Federal Government of Nigeria to take steps to control it. The information on the virus and her
citizens’ well-being served as directing measures in periodic restrictions to maximize containment.
Before containment measures were extended to non-essential services, educational and religious
institutions were the first to be restricted (Onyeji, 2020).

The covid-19 Pandemic arrival in the country triggered a series of policy responses, fiscal and monetary
measures, including public health and education campaigns, compensatory measures in the form of social
protection for the poor and vulnerable, and restrictions on large segments of the economy (Onyekwena
and Amara Mma, 2020). Increased travel was a significant contributing factor to the virus’s global
spread; modern transportation networks made it easy for travelers to transmit the virus; thus, a ban on
interstate travel was a suitable containment measure (AbdulAzeez, 2020).

According Oyeranti and Sokeye (2020), The Federal Government of Nigeria, with the assistance of
various ministries and governmental agencies, mounted an impressive response in the fight against
COVID-19 in Nigeria. The Federal Ministry of Health is at the forefront, with the ministry tasked with
developing and implementing COVID-19 policies in Nigeria in collaboration with other ministries and
agencies. The Federal Ministry of Health, through its Accreditation Committee were inspecting public
and private treatment facilities for confirmed COVID-19 cases. Furthermore, the ministry was in charge
of developing training guidelines and distributing personal protective equipment [PPE] to frontline
workers for this novel disease. The Presidential Task Force for COVID-19 Control (PTF) and the Nigeria
Centre for Disease and Control (NCDC) both strongly support the Federal Ministry of Health (Oyeranti
& Sokeye, 2020).

Furthermore, the Nigeria Centre for Disease Control has been tasked with leading COVID-19 outbreak
readiness, diagnosis, and response in Nigeria. The parastatal publishes regular updates on COVID-19-
related reported cases, discharged cases, and deaths via its website and social media channels. The
NCDC’s mission is to protect Nigerians’ health through evidence-based prevention, integrated disease
surveillance, and response programs implemented through a single health strategy driven by research
and led by a professional workforce (Oyeranti & Sokeye, 2020).
Figure 1: Weekly Confirmed COVID-19 computed by (Oyeranti & Sokeye, 2020).

The effectiveness of the lockdown in Abuja, Lagos, and Ogun State were questioned, as citizens in all
three states were seen to be reluctant to comply with the restriction (Usigbe, 2020). The inter-state
movement ban is said to have been defeated by corruption in Nigeria. Members of society have viewed
the promise of palliatives (cash transfers and relief material distribution) as a major failure, given that
Nigeria is the epicenter of the world’s multidimensional poverty (Okon, 2020). This resulted in an
increase in crime in certain areas of Lagos and Ogun States (Orjinmo & Ulohotse, 2020). The concept of
social distancing was not strictly enforced in other Federation states, and some states did not prohibit
religious gatherings.

Furthermore, in search of relief, the Nigeria Government requested a product from Madagascar that
allegedly cures COVID-19. In Madagascar, the product has been accredited with a high recovery rate.
The President of the Federal Republic of Nigeria has issued directives to the National Institute for
Pharmaceutical Research and Development (NIPRD) and the National Agency for Food and Drug
Administration and Control (NAFDAC) to ensure a thorough analysis and scrutiny before it is admitted
into the country (Daily Trust, 2020).

1.3 Consumer Behavior

The concept of consumer behavior emerged in the 1940s and 1950s when sociology, anthropology, and
psychology were used to describe how and why people buy (Fullerton, 2013). The process of choosing,
buying, utilizing, or disposing of goods and services, services, ideas, or experiences to meet the needs
and desires of an individual or group is referred to as consumer behavior (Solomon et al., 2010).
Consumer behavior, according to Sharma and Sonwalkar (2013), is the process of learning that
individuals or groups go through when making purchasing decisions to satisfy their needs, and their
purchasing behavior is influenced by factors such as earning, demographics, social, and cultural factors,
it has evolved over the last 25 years.

Consumer behavior is a psychological trait that determines whether or not a person purchases goods,
services, or anything else. Consumer behavior research includes the search, evaluation, purchase,
consumption, and post-purchase behavior of customers, as well as the disposal of goods purchased while
keeping the environment and individual qualities in mind. It is a body of knowledge that investigates
various aspects of individual product and service purchases and consumption (Barmola & Srivastava,
2010).

According to Khan (2018). Consumers exhibit specific shopping behaviors such as tastes, preferences,
information seeking, purchase behavior, and new product ideas when they search for, buy, use, access,
or dispose of the products and services that they expect to meet their need. Because understanding
consumer behavior is complex, marketers must analyze and obtain the buyer’s reactions to their
marketing strategy. Consumers exhibit certain buying behavior, such as tastes, purchase behavior,
information seeking, preferences, and new product ideas, when they search for, buy, use, access, or
dispose of the products and services they expect to meet their needs (Khan, 2018).

Consumer decision-making has become very complex and important for them as a result of rapid changes
in the competitive global business environment. For businesses, how a customer makes a decision is
critical. Age, lifestyle, personality, gender, employment, economic situation, and self-concept are all
important factors to consider when analyzing consumer behavior. Consumer behavior studies look at
how people make purchasing decisions, what they want to buy, what they prefer to buy, why they want
to buy, and when they want to buy. To put it another way, it combines elements of psychology, sociology,
anthropology, and economics (Muniady et al., 2014).

1.4 Factors Influencing Consumer Behavior

The study of consumer behavior is quite complex due to the numerous variables involved and their
tendency to interact with and influence one another. These variables are divided into three major
categories that have been identified as the most significant general influences on consumer behavior
(Barmola & Srivastava, 2010). Consider three concentric circles, one on the outside, one in the middle,
and one on the inside, which represent the following.
 1. External Environment Factors Influencing Behavior: These are the factors controlled by external
environments, such as the following, which form the basis of external influences over a
customer’s mind (outer circle): Culture and Sub-culture, Social Class and Social Group, Family
and Inter-Personal Influences, Other Influences (which are not categorised by any of the
preceding six, such as geographical, political, economic, religious environment, and so on
(Barmola & Srivastava, 2010).
2. Individual Determinant Factor: The middle ring depicts major individual determinants of
consumer behavior. These are the characteristics of the human mind. These variables are personal
in nature, and they are influenced by the aforementioned set of external factors, which in turn
influence how consumers proceed through the decision-making process for products and services.
Personality and self-concept, Perception & Information Processing, Motivation and Involvement,
Learning & Memory, and Attitudes are some of them (Barmola & Srivastava, 2010).
3. The Decision-Making Process of Consumers: The purchasing decision is the result of complex
interactions of external factors and personal characteristics. The innermost circle represents the
consumer decision-making process for products and services, with the following major steps:
problem recognition, information search, application evaluation, purchase decision, and post-
purchase behavior (Barmola & Srivastava, 2010).
Once we understand the factors that directly or indirectly influence a consumer’s purchasing
behavior, we can learn more about the covid-19 impact and its related activities.

1.5 Impact of Covid-19 on Consumer Behavior in Nigeria

The COVID-19 pandemic has had a profound impact on how we live and work, how and where we shop,
what we value, and how we think about the future. While some of these changes are only temporary,
others will last long after the pandemic is over. As COVID-19 reshapes industries and accelerates long-
term underlying trends, it is more important than ever for businesses to understand consumer behavior
and have a comprehensive view of market trends. This brief report provides an overview of COVID-19’s
short and long-term effects on consumer behavior (GAIN, 2021).

Nigeria is the most populous country in Africa, with a high levels of poverty, a large informal economy,
a high reliance on imported staples, and high shock exposure. Nigeria was one of the first countries in
Sub-Saharan Africa to detect COVID-19 (coronavirus) cases, and it has taken stringent measures to
prevent the virus’s spread. At the same time, following the global pandemic’s spread, oil prices dropped
significantly by 60%. The oil sector accounts for the majority of government revenue in Nigeria, so the
drop in prices has a significant impact on the economy (World Bank, 2021).

Furthermore, The federal government is faced with the dual challenge of combating the pandemic’s
public health crisis while also attempting to support a faltering economy. Given mounting evidence that
the twin crises will have significant social and economic consequences, the government is stepping up
policy interventions that can help mitigate these negative consequences (World bank, 2021). Also, att of
to prevent poverty from deepening and increasing in Nigeria requires mitigating the effects of the
COVID-19 crisis; prior to the crisis, nearly 4 in 10 Nigerians were living below the national poverty line,
and millions more were living just above it, making them vulnerable to falling back into poverty when
shocks occur.

In March 2020, federal and state governments implemented social distancing and mobility restrictions
as part of the pandemic’s containment measures (FMBNP, 2020). In mid-March, the federal government
closed all schools, and several states and local governments imposed bans on public and social
gatherings. The Nigerian government had closed its land and air borders to all travelers by late March,
and passenger rail services within the country had been suspended (Ogundele, 2020; NCDC, 2020). In
addition, the federal government announced fiscal and stimulus measures worth up to 50 billion Naira to
help households and small and medium-sized businesses affected by COVID-19 (FMBNP, 2020).

The federal and state governments in Nigeria were primarily responsible for the country’s lockdown and
mobility restrictions. For some states, such as Abuja FCT, Ogun, Kano, Delta, Lagos, Delta, Taraba,
Kaduna, Ekiti, and Kwara state (Bargain & Aminjonov, 2020). Federal and state governments have
announced lockdown measures and strict mobility restrictions beginning March 29, 2020. In other states,
state governments implemented lockdown measures without the involvement of the federal government.
The lockdowns were usually in place for 5-8 weeks in most cases. Residents’ movement was restricted,
businesses were closed, and regional borders connecting lockdown areas to the rest of the country were
closed as a result of these measures (Mulubrhan et. al., 2021)

The COVID-19 control measures imposed in 2020 disrupted Nigeria’s already fragile food system.
However, more than COVID-19-related disruptions, increasing levels of banditry, communal clash and
kidnapping, in the Northern region on the country have had a greater influence on food systems and food
insecurity in the country in recent times (global alliance for improved nutrition, GAIN, 2021). According
to a GeoPoll study on the effects of COVID-19 in six African countries, 68 percent of Nigerian
respondents said their spending on food and other goods increased in the three months leading up to April
2021 due to rising food prices. Food inflation rates are continuing to rise, putting additional strain on
households already dealing with high unemployment and decreasing incomes.

Also, during pandemics, the use of digital media has increased significantly. Video telephony, online
chats, and social media platforms such as Facebook, Twitter, WhatsApp, and Zoom are just a few
examples. People were forced to change their consumption patterns as a result of social isolation and
lockdowns. People began doing home-based work such as cooking, cleaning, working, shopping,
socializing, and gardening as a result of Covid-19 (Cambefort, 2020)

1.6 Impact of Covid-19 on the Purchase of food in Nigeria

During the Covid-19 pandemic, vulnerable populations continue to face economic setbacks in 2020, as
poor macroeconomic conditions make recovery and food access difficult. Despite the official reopening,
the depreciation of the Naira and high inflation, combined with restrictions at Nigerian land borders,
continue to affect the food trade. 18 The decline in foreign reserves and economic damage caused by
COVID-19 control measures in 2020 have resulted in local currency depreciation and high inflation,
putting additional pressure on already stressed markets (GAIN, 2021). The pandemic’s impact is
expected to differ by geographic location and households type, with pre-existing food security
vulnerabilities likely to be exacerbated (Amjath-Babu et al., 2020; Béné, 2020; Devereux et al., 2020;
Ravallion et al., 2020; Mobarak and BarnettHowell, 2020). Nigeria has long had significant geographical
variation in poverty and food insecurity – more than 75 percent of poor Nigerians live in the country’s
north – and the pandemic is likely to exacerbate food insecurity in those already fragile and conflict-
affected areas (World Bank, 2020b, 2020c)

Covid-19 has a variety of negative effects on local food system agents, as discussed by Béné (2020), and
is likely to have negative consequences for food security. These effects include, but are not limited to,
disruptions in the supply chain for inputs, a drop in demand for certain food commodities, a reduction in
worker availability, disruptions in transportation (of both inputs and final products), and the impact on
the activities of food retailers and vendors. All of these things will inevitably raise food prices for
consumers. Another possible supply-side channel through which COVID-19 can affect food insecurity
is an increase in food prices (e.g., Mogues, 2020)
Poorer households both in rural and urban areas are expected to bear the brunt of the consequences
(Ericksen et al., 2010; Ravallion et al., 2020; Mobarak and Barnett-Howell, 2020). As the pandemic
spreads, government responses, such as mobility restrictions and lockdowns, are likely to be most intense
in urban areas, affecting urban residents more directly than rural households in the short term. Rising
food prices have persistently pushed millions of poor households who were already struggling to meet
their basic food need deeper into food insecurity, according to a WFP report released in April 2021. Food
supply was below average amidst above-average demand in April 2021. according to FEWS NET, due
to the early depletion of household stocks and increased market dependence, prices were higher than the
previous year and average levels due to supply/demand trends, higher transportation costs, and the
depreciation of the national currency (Naira) against the US Dollar.

1.7 Impact of Covid-19 on the Livelihood Sources in Nigeria

Several studies from developed countries that have administrative and transaction-level data show that
the pandemic has had varying effects on various livelihood options and sectors. In comparison to those
involving personal interactions, livelihoods and sectors that can operate remotely with limited personal
interactions or are functionally dependent on the internet are likely to be less affected (Dingel and
Neiman, 2020; Abay et al., 2020; Gilligan, 2020). the effect of COVID-19 is expected to differ across
livelihood options, with activities requiring face-to-face interactions likely to see a significant drop in
demand (e.g., Abay et al., 2020; Baldwin and Weder di Mauro, 2020). Value chain disruptions may have
a significant impact on rural areas, affecting both input supply and output demand for farmers, as well as
the income of those working in both upstream and downstream agricultural value chains (Barrett et al.,
2019; Amjath-Babu et al., 2020, Reardon et al., 2020a).Similarly, some livelihood options and sectors
are likely to be subjected to a greater degree of economic disruption. Government-imposed mobility
restrictions and shutdowns, for example, frequently disrupt supply chains, which can be especially
difficult for small businesses with limited inventory. As a result, households that rely on non-farm
business activities are likely to be disproportionately affected by value chain disruptions caused by the
pandemic and related restricted mobility. Although few rural activities in Nigeria are functionally
dependent on the internet, some activities can be carried out without requiring many personal interactions
with others, making them less vulnerable to these restrictions and lockdown measures (Mulubrhan et. al.,
2021).
Among the primary factors by which the COVID-19 pandemic can affect food insecurity is a reduction
in income. Wage-related activities are the least impacted, owing to the fact that some of these tasks can
be done remotely (e.g., Dingel and Neiman, 2020) and/or are covered by formal contracts which are less
likely to fire employees and allow employees to perform some functions in some form. These findings
are in line with evidence from around the world about the pandemic’s different sectoral effects (e.g.,
Dingel and Neiman, 2020; Abay et al., 2020).

1.8 Policy Responses to Covid-19

To combat the impact of coronavirus on households, micro and small businesses, the government, private
sector, and non-governmental organizations established several measures

Government Policy Responses

• The Central Bank of Nigeria (CBN) announced in March 2021 the addition of NGN 50 billion
(USD 120 million) to its Targeted Credit Facility, a stimulus program for MSMEs and households
affected by the Pandemic. The funds will be distributed through the Nigerian Incentive-based
Risk Sharing System for Agricultural Lending Microfinance Bank at a 5% annual interest rate
until February 28, 2022, when the interest rate will rise to 9%.
• The Development Bank of Nigeria (DBN) has approved the first tranche of NGN 1 billion for
disbursement to MSMEs by Living Trust Mortgage Bank
• In March 2021, the Bank of Industry secured a USD 1 billion syndicated loan to support MSMEs
under the supervision of the Federal Ministry of Industry, Trade, and Investment. The loan, which
is being implemented in collaboration with international partners, has a long tenor as well as
moratorium benefits.
• The Edo State Government announced in May 2021 the allocation of NGN3 billion as a post-
COVID-19 Intervention grant to mitigate the effects of the COVID pandemic on the state’s
SMEs. The loan will be distributed as grants to affected businesses in order to help them meet
their debt obligations.

Private-Sector Responses

• CardinalStone Capital Advisers, a Lagos-based private equity fund manager, closed a USD 64
million fund in March 2021, which will be used to invest in the growth and institutionalization of
SMEs in Nigeria and Ghana. 54 During the same period, private equity firm TLG Capital
 announced a collaboration with Fidelity Bank Plc to invest USD 20 million in Nigerian SMEs in
the healthcare, education, and consumer sectors.
• Uhuru Investment Partners, a middle-market private equity firm, announced the first close of the
Uhuru Growth Fund in April 2021 at USD 113 million, with capital support from CDC Group,
the UK’s development finance institution, as well as other commercial investors. The fund will
aid in the economic revitalization of local businesses. From the COVID-19 pandemic and boost
trade across the continent by investing in SMEs in West African countries such as Nigeria, Ghana,
Côte d’Ivoire, and other Francophone markets.
• First Bank of Nigeria Limited, one of Nigeria’s tier-1 banks has launched special accounts to help
SMEs grow. The accounts, FirstSME Classic and FirstSME Deluxe are available to all SMEs,
regardless of industry, and are designed to expose businesses to services and opportunities critical
to their continued growth (e.g., digital platforms, networking opportunities, business promotions,
and temporary overdrafts).

Responses from Non-Governmental Organisations

• The United States Agency for International Development (USAID) in Nigeria launched a
COVID-19 Food Security Challenge in April 2021, providing USD 3 million in grant support and
technical assistance to youth-led and mid-stage companies in Nigeria’s food value chains. The
Challenge will award up to USD 75,000 to 15 to 25 youth-led companies, and up to USD 150,000
to 10 to 15 mid-stage companies. The winners will obtain funding and technical support to expand
rapidly their activities to minimize the impact of COVID-19 on Nigeria’s food value chains and
improve the resilience of vulnerable households to the pandemic’s negative effects.
• Mastercard initiated its SME Dining Series in Abuja and Lagos in May 2021 to help small
businesses. The series aims to support and promote Nigerian SMEs as they grow their businesses
in response to changing consumer behavior as a result of the pandemic’s impact.

2. Methodology

To achieve the study’s objectives a qualitative method was used. the questionnaire survey method was
used. The questionnaire survey is conducted entirely online. A total of 100 respondents will be chosen
from the selection file. To obtain relevant data, a random selection method will be used to select the
sample, ensuring that the research is as representative as possible. In consideration of the age, the
selection will include the entire structure of the surveyed file. The goal of the questionnaire survey is to
identify changes in consumer purchasing behavior as a result of the COVID 19 pandemic, with a
particular focus on changes in the way people buy things, such as when, where, and how they buy things,
as compared to the “pre-covid” period.

Between March and April 2022, a questionnaire survey was conducted. The questionnaire survey had a
total of 100 Nigerian respondents. The questionnaire was completed online following the piloting of the
survey. There were 62 women and 38 men among the 100 respondents. In the 15-25 age group, there
were 41 people who responded. There were 26 respondents between the ages of 26 and 35. There were
15 interviewees between the ages of 36 and 45. Thirteen respondents were between the ages of 46 and
55. There were 80 respondents between the ages of 56 and 65, with 5 responding from the age group of
65 and up.

Age Group Number of Respondent Percentage %

15-25 41 41%
26-35 26 26%
36-46 15 15%
46-55 13 13%
65-80 5 5%
Total 100 100%

The study’s goal was to be descriptive rather than causal, i.e., to find out what changes consumers had
noticed in their behavior. Questions were divided into four categories to obtain comprehensive results of
COVID 19’s impact on consumer purchasing behavior: food purchases, fashion and footwear, and
electronics. From March 2020 to January 2021, respondents were asked to describe their shopping habits.
As a result, this was a period when government restrictions on the retail sector had a significant impact.
2.1 Survey Method

The purpose of the questionnaire survey was to confirm the observed changes in consumer behavior
when it came to purchasing food, clothing, footwear, and electronics. The questions were designed to
identify potential changes in purchase frequency, purchase composition, e-shop preferences, and
shopping time for food. Closures of stores and the rate of use of e-shops in obtaining these goods were
discovered to be a significant problem for consumers in the clothing, footwear, and electronics industries.
For each sector, the respondent was asked to rate their level of agreement with a series of statements. To
consider a comparison of purchasing behavior.

2.2 The Empirical Results

The evaluation model developed in the theoretical part indicates factors divided into three parts; Changes
in the frequency of purchases, the composition of purchases, e-shop preferences, and food shopping time
to examine the impact of covid-19 on consumer behavior in Nigeria. Statistical analysis of these factors
will help to assess COVID – 19 effects on consumer behavior in Nigeria.

Consumer Behavior: Food

I changed my usual buying time 70 15 10 100

I gave my priority to e-shops 65 10 25 100
I changed my expenditure on food 85 10 5 100
I changed where I buy food items 74 20 6 100
I changed my buying preference 73 17 10 100

From Figure 1, I observe that 70 percent of the respondents expressed the opinion that they did change
the time of shopping. In the case of e-shops, 65 percent of respondents did utilize the e-shops as a means
of purchasing food because of the restriction of movement. A higher percentage of respondents changed
the quantity and this was due to the fact that people bought larger quantities because the government stay
home to order. Forward to where they bought their food, 74 percent changed because some food vendors
stayed home, and the few that came out changed location because of government directions to avoid the
crowd. Only a few remained loyal to shops when buying food. 73 percent of the 100 respondents did not
change their preference because they were trying to manage their resources pending when the lockdown
will be over.

The Shutdown and interruption of informal food markets, where the poor obtain the majority of their
food, had a greater impact on food security than the shutdown and interruption of formal markets
(Devereux et al., 2020; Barrett, 2020)

Livelihood Source

Extremely Moderately Not at all Total

Wage related 15 5 5 25
Activities
Salary related 26 4 3 33
activities (Private)
Unemployed 15 12 5 32
Government 6 3 1 10
Workers
Total 62 24 14 100
Table 3: Source, Researcher, 2022.

Results in Table 3 show the implication of the spread of the pandemic on labor market participation rates. As
expected, the spread of the pandemic is associated with a significant reduction in economic activity. The interaction
in the different levels of livelihood sources in Table 3 shows that 62 out of 100 Participant were extremely affected
by the pandemic. This is as a result of the government directive the curb the spread of the virus. The salary related
activities was greatly affected because some of them were laid off from their jobs because their organization was
trying to reduce costs due to the pandemic.

The 14 participants that we are not affected and the way you dated activities because it was contract work and the
location of the site was close to where they stay so they were receiving their wages constantly. For the unemployed
nothing changed because they were students who rely on their parents for income. Overall, these results imply that
households in areas with a higher degree of exposure to the pandemic have experienced significant reductions in
economic engagement.

2.3 Conclusion
The analysis of scientific literature was performed in order to examine the covid-19 pandemic and its impact on
consumer behavior in Nigeria. there is no general definition of consumer behavior, as consumer behavior is a
Phenomenon psychology activity that can be perceived subjectively and defined Differently. Consumer behavior
is a psychological phenomenon that determines whether or not a person purchases goods, services, or anything
else.

The COVID-19 global pandemic in the 21st century affecting countries in countries all over the world. Countries
all over the world are taking measures to curb the spread. In March 2020, the federal and state governments of
Nigeria implemented social distancing and mobility restrictions as part of the pandemic’s containment measures
(FMBNP, 2020). These measures affected the consumer behavior of her citizen, especially in the food sector and
the source of Livelihood.

As the pandemic extends across time and space, it is unclear how these effects will evolve. The estimated
elasticities of economic engagement, food insecurity, and food prices to pandemic spread and lockdowns
may change over time. Nonetheless, income declines experienced by households shortly after the
pandemic’s outbreak may have long-term consequences due to potential impacts on agricultural inputs,
education, health care, and other investments in the coming months. Our findings are consistent with
other assessments of the urgency of effective social safety net expansion to address such exacerbated
vulnerabilities and mitigate their long-term economic and welfare consequences (Amjath-Babu et al.,
2020; Béné, 2020).

Based on the research, it can be concluded that there has been a change in consumer behavior in Nigeria
because of restrictions that have been introduced to reduce the spread of COVID-19. In the analysis of
purchase of food, purchase frequency, purchase composition, e-shop preferences, and shopping time for
food changed for consumers. Also, the means of livelihood there was a changed putting additional strain
on households already dealing with high unemployment and decreasing incomes. Now, The question
remains whether the changes will be permanent, or customers will return to their original shopping habits.

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APPENDIX

QUESTIONNAIRE

1. Your age bracket ?

15-25( )
25-35 ( )
35-45 ( )
45-55 ( )
65+ ( )

2. What kind of Job do you do?

Wage related activities ( )
Salary related activities ( )
Governments worker ( )
Unemployed ( )

3. Does the Covid-19 affect your buying habit?

Extremely ( ) Moderately ( ) Not at all ( )

4. How have the covid-19 pandemic affected you buying time?

Extremely ( ) Moderately ( ) Not at all ( )

5. How does the Covid-19 pandemic affect your priority to e-shop?

 Extremely ( ) Moderately ( ) Not at all ( )

6. Is there any change on your expenditure on food?

Extremely ( ) Moderately ( ) Not at all ( )

7. Has the covid-19 pandemic made you change where you buy food stuff?
Extremely ( ) Moderately ( ) Not at all ( )

8. What extent have the covid 19 pandemic change your buying preference?
Extremely ( ) Moderately ( ) Not at all ( )