Nigerian consumers are bracing for a significant portion of their income to be spent on essential needs over the next six months.
This is according to the July 2024 Household Expectations Survey conducted by the Central Bank of Nigeria (CBN) between July 22 and July 26 which reveals many Nigerians plan to allocate their income primarily to food, education, and transportation.
Part of the report reads, “Spending outlook for the next six months showed that consumers plan to spend a substantial amount of their income on the following items: Food and other Household Items (54.9 points), Education (35.4 points), Transportation (30.2 points), Electricity (20.0 points) and Medical Expenses (12.2 points).”
In contrast, the survey highlights that Nigerians do not anticipate significant spending on big-ticket items such as housing, vehicles, and appliances. The indices for the purchase of houses and cars/motor vehicles stand at -56.9 and -55.6 points, respectively, reflecting a clear intent to avoid large expenditures in these categories.
Additionally, the report shows low indices for investments and savings, with -22.6 and -9.3 points respectively, signalling a cautious approach towards financial planning in the coming months.
It further noted, “On the other hand, they do not plan to spend a substantial amount of income on big tickets items such as Purchase of House (-56.9 points), Purchase of Car/Motor Vehicle (-55.6 points), Purchase of Appliances (-30.1 points). They do not intend to spend on Investment (-22.6 points) and Savings (-9.3 points).”
The CBN survey also highlights the continued economic strain on Nigerian households, as the majority of respondents foresee drawing down on their savings or incurring debt to meet these basic expenses.
