Consumers’ Confidence in Nigerian Economy Increases for Q4 2020

The Central Bank of Nigeria stated that the Consumers’ confidence in the Nigerian economy in the fourth quarter of 2020 and the next 12 months has increased with indices of 10.1 and 30.5 points respectively.

This was disclosed by the Statistics Department of the apex bank in its Consumer expectations survey’ report for September, which was released on Friday.

According to the report, consumers were optimistic in their outlook for the next quarter and the next 12 months.

This positive outlook could be attributed to the expected increase in net household income, and anticipated improvement in Nigeria’s economic conditions and expectations, to save a bit and/or have plenty over savings in the next quarter and the next 12 months.

It stated, “Most respondents expected prices of goods and services to rise in the next 12 months, with an index of 36.2 points.

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“The major drivers were savings, purchase of car/motor vehicle, purchase of appliances/ durables, education, food & other household needs, and purchase of houses.

“Overall buying intention index in the next 12 months stood at 29.7 index points, indicating that most consumers did not intend to buy big-ticket items in the next 12 months.”

It added that the buying intention indices for consumer durables, motor vehicles, and houses were below 50 points, which showed that respondents had no plans to make these purchases in the next 12 months.

However, the consumers’ overall confidence outlook dipped in Q3 2020, as consumers were pessimistic in their outlook.

It stated, “The index at -21.2 point was 25.0 points lower than the index in the corresponding period of 2019.

“Respondents attributed this unfavorable outlook to declining economic conditions, family financial situation, and declining family income.”