In the first half of 2022, rising inflation pushed Nigerians’ consumer expenditures to N57.08tn.
According to the “Nigerian Gross Domestic Product Report (Expenditure and Income Approach)” published by the National Bureau of Statistics, this represents an increase of 14.39 percent from the N49.89tn spent during the same time in 2021.
The NBS defines household final consumption expenditure as spending, including “imputed expenditure,” on individual consumption goods and services by resident households. This is a residual calculation.”
In real terms, household final consumption increased by 6.94 percent in the first quarter of 2022 and by 17.64 percent in the second quarter of 2022.
It was said that the growth rates were less than those of the comparable quarters of 2021, which registered 47.16 and 42.40 percent, respectively.
It stated, “The observed pattern since 2020 suggests that real household consumption expenditures decreased in Q1 and Q2 due to negative growth rates brought about by the COVID-19 pandemic.
“However, positive growth rates were observed in the third and fourth quarters of 2020 and all four quarters of 2021. As the economy recovers from the shock of the pandemic, the growth rates for Q1 and Q2 of 2022 have decreased relative to the same quarters of 2021.
“Quarter-over-quarter, actual household consumption expenditures decreased by 8.50% in Q1 2022 and increased by 2.32 percent in Q2 2022. In nominal terms, household final consumption expenditures increased 8.14 percent in the first quarter and 20.99 percent in the second quarter of 2022.
In its report, the NBS disclosed that household consumption accounted for 76.79 percent of real GDP at market prices in the first quarter of 2022 and 78.99 percent in the second quarter of 2022, leaving little room for investments and other uses.
The Organisation for Economic Co-operation and Development defines household spending as the amount of final consumption expenditures made by households to meet their daily needs, such as food, clothing, housing (rent), energy, transportation, durable goods, health costs, leisure, and other services.
It was around 60 percent of the GDP and a crucial variable for economic demand research.
Since 2021, headline inflation has increased from 16.47% in January 2021 to 18.60% in June 2022. The rate increased to 18.60% in September 2022.
In its September inflation report, the NBS stated that the disruption in the supply of food products, the increase in import costs as a result of the persistent currency depreciation, and the general increase in the cost of production were all contributing to the rise in prices for goods and services.