Nigerians losing hope in the economy –CBN survey

Consumers’ overall outlook on the Nigerian economy was bleak in the third quarter, as they were pessimistic in their outlook, the Central Bank of Nigeria (CBN)’s Consumer Expectations Survey Report issued on Friday showed.

At -21.2 points, the index was 25.0 points weaker than the index in the relative period of 2019. Respondents linked the bleak outlook to worsening economic conditions, weaker family income and family financial situation.

But consumers are optimistic that things will shape up positively in the next quarter and the next one year.

A great many consumers are of the view that the next 12 months are not an ideal time to buy big-ticket items including motor vehicles as well as house & lot.

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At the macro-economic level, Nigerian consumers anticipate naira to strengthen, inflation rate to escalate and borrowing rate to rise in the next 12 months.

It is hoped that purchase of appliances/consumer durables, car/motor vehicle, food and other household essentials, acquisition of education, savings and purchase of homes will be the key drivers of anticipated upward drift in cost of living.

“Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months,” the CBN report said.

At 35.4 points, consumers expect the unemployment rate to rise in the next one year.

The statistics department of the CBN prepared the survey by polling the views of 2,070 households in Nigeria drawn from 207 Enumeration Areas, with a response rate of 99.8 per cent.