By Peter Egwuatu, Nkiru Nnorom,Omeiza Ajayi, John Alechenu and Elizabeth Adegbesan

LAGOS — There are indications that the sustained inflationary pressures in the economy may have forced a reversal of the trend in household consumption expenditure.


The figures which have been going down since second quarter of 2022, Q2’22, reversed to an uptrend in 2023, according to the National Bureau of Statistics, NBS.



The NBS, yesterday said that real household c o n s u m p t i o n expenditure grew yearon- year (YoY) by 3.3 per cent in the second quarter of 2023, Q2’23.

The last growth was recorded in Q1’22 when it rose 8.66 per cent. In second quarter of 2022, Q2’22, household c o n s u m p t i o n expenditure went negative, down to -5.21 per cent and declined further to -5.83 per cent in the third Q3’22.

In fourth quarter 2022, Q4’22, household c o n s u m p t i o n expenditure fell massively to -12.47 percent and it further plunged by -24.95 per cent in the first quarter of 2023, Q1’23.

In its report entitled, ‘Nigerian Gross Domestic Product (Expenditure and Income Approach) Report for Q1 and Q2 2023’, the NBS stated:”Household final consumption, in real terms, grew by -24.95 percent and 3.30 per cent in Q1 and Q2 of 2023 respectively, on a year-on-year basis.

“The observed trend since 2020 indicates that real household c o n s u m p t i o n expenditure declined in Q1 and Q2 of 2020, accounting for negative growth rates informed by the pandemic.

“However, positive growth rates were recorded since Q3’20 as recovery from the pandemic was witnessed, while growth became negative from Q2’22 to Q1’23 occasioned by rising prices, the cash crunch witnessed earlier this year as well as the current challenging economic conditions.

“Furthermore, growth in Q2’23 stood positive recorded at 3.3 per cent, a departure from the negative trend recorded in the previous quarter.


“On a quarter-on-quarter basis, real household consumption expenditure decreased by 20.29 per cent in Q1’23 and rose by 11.68 per cent in Q2 of 2023. “ H o u s e h o l d consumption accounted for 57.18 per cent of real GDP at market prices in Q1′ 23, and 64.05 percent in Q2’23”.

Related News
Nigerian student faces deportation from Scotland after threats to university
Lebanon's Hezbollah intensifies attacks on Israel
Rivers gov’t makes major reshuffling in state assembly management
“This could be detrimental to capital formation and ultimately economic growth in the medium term if inflation is not addressed quickly.”

Analysts comment
Against the backdrop of the trend reversal, some analysts have attributed the development to inflation, which forced households to
devote more funds to basic necessities such as food while savings, investments and capital expenditures were suspended.

It’s inflation induced —Parthian Partners
Commenting on the consumption figures, Marvellous Adiele, Senior Associate at Parthian Partners, a Lagos-based investment finance company, said: “The growth in household expenditure despite the current economic situation could be majorly driven by inflation.

The rising prices of goods and services mean increased spending for consumers as they strive to cover their living expenses.


“Also, the persistent rise in inflation (27.33 pe rcent as at Oct 2023) means that consumers’ purchasing power continues to decline, which could in turn affect their standard of living.”

Families shifted towards recurrent rather than savings, investment —Ex-CIS boss
Reacting also, Olatunde Amolegbe, immediate past president of the Chartered Institute of Stockbrokers,

CIS, said: “The obvious reason is galloping inflation particularly as related to food and other household items. Families are now having to dedicate more of their income towards recurrent expenditure rather than towards savings
and investments.

It is induced by base effect – Wyoming Capital
Also reacting, Tajudeen Olayinka, CEO, Wyoming Capital and Partners said: “The fact that it suffered a decline of -5.21 per cent in Q2 2022 and had an improvement of 3.3 per cent in Q2 2023 tells the story of a modest recovery, still slightly in the negative territory but turned out positive due to base effect. It is a good development, though.

“It is nothing spectacular. It means more efforts are needed to put household consumption in positive territory, and by extension, economic growth.”


Fiscal stimulus measures might have played a substantial role —ID Africa
On his part, Clifford, Egbomeade, Public Relations & Communications Adviser at ID Africa, said: “The second quarter of 2023 witnessed a notable turnaround in household consumption expenditure, marking a departure from the persistently negative trends observed since the second quarter of 2022.

“Despite an increasingly adverse economic landscape, the 3.3 per cent year-on-year growth in real household consumption expenditure signifies a nuanced interplay of various factors.

“One pivotal driver contributing to this shift could be the strategic interventions by policy-makers.

Government initiatives, such as fiscal stimulus measures, might have played a substantial role.

“Concurrently, the ongoing adjustments of monetary policies, potentially involving interest rates, might have incentivized borrowing, thereby empowering households to engage in increased spending activities.

https://www.vanguardngr.com/2023/11/nbs-report-families-spend-more-as-inflation-persists/

It is undeniably so because the media can't hide this! We are spending a lot in this country as prices of goods has skyrocked beyond the threshold.

There is no commensurate increment in earnings but the prices keep soaring! In the face of this, billings are mounting from days to day expenses to family members seeking help.

What is the end to this inflationary trend? Is there an end in sight?

May God help the needy in this country. When the HAVEs are groaning in pains, what would the downtrodden do?

It's a time to help your neighbor

Hmmm

Yes ke
To eat fresh chicken now na wahala....

Even beer 🍺 sef no wan bear Tinubu economy

Catfish wey men de take step down family wahala for area at night......na the rich also cry full everywhere you go.....

God bless GEJ....the best Nigeria president ever.....

When Jonathan said,ApC have nothing to offer Nigeria we thought he was joking abi what?

Today how far?

The have collectively murdered the good old days when a bag of rice was just 7k and a Carton of indomitable was 1,200 naira.

Things don spoil.

The suffering is unbearable

treesun:
By Peter Egwuatu, Nkiru Nnorom,Omeiza Ajayi, John Alechenu and Elizabeth Adegbesan

LAGOS — There are indications that the sustained inflationary pressures in the economy may have forced a reversal of the trend in household consumption expenditure.


The figures which have been going down since second quarter of 2022, Q2’22, reversed to an uptrend in 2023, according to the National Bureau of Statistics, NBS.



The NBS, yesterday said that real household c o n s u m p t i o n expenditure grew yearon- year (YoY) by 3.3 per cent in the second quarter of 2023, Q2’23.

The last growth was recorded in Q1’22 when it rose 8.66 per cent. In second quarter of 2022, Q2’22, household c o n s u m p t i o n expenditure went negative, down to -5.21 per cent and declined further to -5.83 per cent in the third Q3’22.

In fourth quarter 2022, Q4’22, household c o n s u m p t i o n expenditure fell massively to -12.47 percent and it further plunged by -24.95 per cent in the first quarter of 2023, Q1’23.

In its report entitled, ‘Nigerian Gross Domestic Product (Expenditure and Income Approach) Report for Q1 and Q2 2023’, the NBS stated:”Household final consumption, in real terms, grew by -24.95 percent and 3.30 per cent in Q1 and Q2 of 2023 respectively, on a year-on-year basis.

“The observed trend since 2020 indicates that real household c o n s u m p t i o n expenditure declined in Q1 and Q2 of 2020, accounting for negative growth rates informed by the pandemic.

“However, positive growth rates were recorded since Q3’20 as recovery from the pandemic was witnessed, while growth became negative from Q2’22 to Q1’23 occasioned by rising prices, the cash crunch witnessed earlier this year as well as the current challenging economic conditions.

“Furthermore, growth in Q2’23 stood positive recorded at 3.3 per cent, a departure from the negative trend recorded in the previous quarter.


“On a quarter-on-quarter basis, real household consumption expenditure decreased by 20.29 per cent in Q1’23 and rose by 11.68 per cent in Q2 of 2023. “ H o u s e h o l d consumption accounted for 57.18 per cent of real GDP at market prices in Q1′ 23, and 64.05 percent in Q2’23”.

Related News
Nigerian student faces deportation from Scotland after threats to university
Lebanon's Hezbollah intensifies attacks on Israel
Rivers gov’t makes major reshuffling in state assembly management
“This could be detrimental to capital formation and ultimately economic growth in the medium term if inflation is not addressed quickly.”

Analysts comment
Against the backdrop of the trend reversal, some analysts have attributed the development to inflation, which forced households to
devote more funds to basic necessities such as food while savings, investments and capital expenditures were suspended.

It’s inflation induced —Parthian Partners
Commenting on the consumption figures, Marvellous Adiele, Senior Associate at Parthian Partners, a Lagos-based investment finance company, said: “The growth in household expenditure despite the current economic situation could be majorly driven by inflation.

The rising prices of goods and services mean increased spending for consumers as they strive to cover their living expenses.


“Also, the persistent rise in inflation (27.33 pe rcent as at Oct 2023) means that consumers’ purchasing power continues to decline, which could in turn affect their standard of living.”

Families shifted towards recurrent rather than savings, investment —Ex-CIS boss
Reacting also, Olatunde Amolegbe, immediate past president of the Chartered Institute of Stockbrokers,

CIS, said: “The obvious reason is galloping inflation particularly as related to food and other household items. Families are now having to dedicate more of their income towards recurrent expenditure rather than towards savings
and investments.

It is induced by base effect – Wyoming Capital
Also reacting, Tajudeen Olayinka, CEO, Wyoming Capital and Partners said: “The fact that it suffered a decline of -5.21 per cent in Q2 2022 and had an improvement of 3.3 per cent in Q2 2023 tells the story of a modest recovery, still slightly in the negative territory but turned out positive due to base effect. It is a good development, though.

“It is nothing spectacular. It means more efforts are needed to put household consumption in positive territory, and by extension, economic growth.”


Fiscal stimulus measures might have played a substantial role —ID Africa
On his part, Clifford, Egbomeade, Public Relations & Communications Adviser at ID Africa, said: “The second quarter of 2023 witnessed a notable turnaround in household consumption expenditure, marking a departure from the persistently negative trends observed since the second quarter of 2022.

“Despite an increasingly adverse economic landscape, the 3.3 per cent year-on-year growth in real household consumption expenditure signifies a nuanced interplay of various factors.

“One pivotal driver contributing to this shift could be the strategic interventions by policy-makers.

Government initiatives, such as fiscal stimulus measures, might have played a substantial role.

“Concurrently, the ongoing adjustments of monetary policies, potentially involving interest rates, might have incentivized borrowing, thereby empowering households to engage in increased spending activities.

https://www.vanguardngr.com/2023/11/nbs-report-families-spend-more-as-inflation-persists/

I pity those who are hailing their oppressors, waiting for one derica of rice, One cup of beans and garri as Christmas present from politicians. Instead of pouring out their angers.

Austerity measures everywhere but not for me. Those mummified zombies know themselves.