Nigerian households are planning to give a significant amount of their income to food and other essential items over the next six months, reflecting sustained pressure from rising living costs.
This is according to the Central Bank of Nigeria’s (CBN) Consumer Expectations Survey.
For the second consecutive month, the Overall Consumer Sentiment stood in positive territory at 4.8 index points.
The report highlights a unique trend in price perception. The index for the current price of Food & Other household items stood at -25.3 points, indicating that a majority of respondents perceived these costs as low during the December period. However, this is caused by an Average Price Index of 25.9 points for other items, showing that the overall cost of living remains a burden.
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The financial family situations index made an improvement to -5.4 points from -10.3 points.
“Spending outlook for the next six months showed that consumers plan to spend a substantial amount of their income on the following items: food and other household items (63.4 points), education (30.3 points), and transportation (26.4 points),” the report shows.
On the other hand, the appetite for major life investments remains historically low. Purchase of houses (-56.4 points), cars (-55.0 points), and household appliances (-32.9 points) remain deeply negative for the next six months. Investment and landed property acquisition also remain low priorities as families prioritise immediate needs.
According to the CBN, this reflects the pressure on household finances amid elevated prices and slow income growth.
Looking ahead to the new year, Nigerian households have a very strong optimistic confidence about the economy in the coming months.
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“Consumers expect the macroeconomy to experience an improvement in January 2026, with an index of 11.3 points,” the survey stated. This optimism is expected to climb further to 20.7 points by June 2026, driven by an anticipated turnaround in family income and general economic stability.
While the cost of living crisis has left deep scars on household savings, the December data suggest a cautious “new normal” where consumers, though still burdened by high costs, are beginning to see a light at the end of the tunnel for early 2026.