December 2025 Edition

Strategic Pricing, Consumer Communication, and Consumer Purchasing Behavior in The Post-Subsidy Nigerian Market

Abdulazeez Olamide Abdulquadri, Yusuf Ismaila Mustapha Ph.D

Abstract

In the wake of subsidy removal in Nigeria, businesses face significant
challenges as they navigate shifting consumer behaviors and pricing
strategies. This study investigates the interplay between strategic
pricing and consumer communication in the post-subsidy market, with
a particular focus on understanding how these factors influence
business resilience and customer loyalty. Utilizing a qualitative
research design, data was collected from secondary sources, including
academic journals, reports, and market analyses, through reputable
outlets such as JSTOR, Google Scholar, and Emerald. A thematic
analysis was employed to derive insights from the data and the study
yielded several key findings. It was observed that the removal of
subsidies has led to a marked increase in consumer sensitivity to
pricing, significantly altering purchasing behavior. Consumers are now
more price-conscious and value-driven, prioritizing essential goods and
seeking alternatives to maintain their budget. This shift necessitates
that; businesses adopt flexible pricing strategies to remain competitive
in an increasingly volatile market environment. Furthermore, the
findings underscored the critical role of transparent communication in
managing consumer expectations. Businesses that effectively
communicated the reasons behind price adjustments reported higher
levels of customer trust and loyalty. Lastly, the results revealed that
integrating transparent consumer communication into pricing
strategies fosters a stronger brand perception over time. Companies
that prioritize dialogue with their customers, soliciting feedback and
adapting their strategies accordingly, are better positioned to build
enduring relationships and navigate future economic challenges. It was
therefore concluded that strategic pricing, when combined with effective
consumer communication, not only helps businesses survive in a post
subsidy economy but also paves the way for sustainable growth and
enhanced customer loyalty.

Keywords

Subsidy Removal, Pricing Strategies, Consumer Communication, Nigeria, Market Behavior.

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