by Niyi Jacobs
A recent survey by the Central Bank of Nigeria (CBN) has revealed that Nigerian consumers are preparing for a significant portion of their income to be spent on essential needs over the next six months.
The July 2024 Household Expectations Survey showed that many Nigerians plan to allocate their income primarily to food, education, and transportation.
According to the report, spending on food and other household items is expected to take up 54.9 points, followed by education (35.4 points), transportation (30.2 points), electricity (20.0 points), and medical expenses (12.2 points). In contrast, Nigerians do not anticipate significant spending on big-ticket items such as housing, vehicles, and appliances.
The survey also highlights the continued economic strain on Nigerian households, with many respondents foreseeing drawing down on their savings or incurring debt to meet these basic expenses. The spending outlook index rose to 50.2 points, up from 48.7 points recorded in the previous month, indicating that more households are preparing for higher expenditures.
This trend is expected to persist over the next month, three months, and six months, with indices standing at 48.1, 46.4, and 47.5 points, respectively. Nigerians are bracing for tough months ahead, with many planning to rely on borrowing and depleting their savings to manage their financial obligations amid a challenging economic landscape.
