Nigeria’s household consumption dropped by N1.6tr in 2020

Due to economic challenges occasioned by the COVID-19 pandemic, Nigeria’s household consumption dropped by N1.6 trillion last year.

The National Bureau of Statistics (NBS), which disclosed this in its Nigerian Gross Domestic Product report (Expenditure and Income approach) released on Tuesday, said the total household consumption dropped from N108 trillion in 2019 to N106.4 trillion in 2020.

Consumption expenditure is an important factor in determining economic growth for any country. The drop means Nigerians spent less due to the COVID-19 pandemic and recession last year.

In terms of quarterly breakdown in real terms, household consumption expenditure increased by 38.85 percent in Q3 and 20.76 percent in Q4 2020.

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In first quarter of the year, household consumption was N25.4 trillion while Nigerians spent N22.81 trillion in the second quarter.

The citizens spent N28.1 trillion and N30.2 trillion in the third and fourth quarter respectively.

Other highlights from the report showed that consumption expenditure of non-profit institutions serving households rose by 212.36 percent from N552.4 billion in 2019 to N924.8 billion last year.

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