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The Central Bank of Nigeria’s (CBN) Household Expectations Survey for July 2024 reveals that Nigerians are bracing for a period of economic difficulty, with many planning to rely on borrowing and draw down their savings to meet financial needs. The survey, which sampled 1,665 households across the country, indicates a significant drop in consumer confidence, with the index for the next three months falling to a troubling negative 9.1 points.
The report highlights a pervasive sense of unease regarding worsening economic conditions and family financial stability. As a result, many Nigerians expect to either deplete their savings or incur debt. Despite the overall pessimism, there is a modest expectation for improvement in family income, reflected in an index of 1.6 points.
In July 2024, the Consumer Confidence Index plunged to -41.7 points, revealing substantial financial strain on households. Concerns are centered around rising costs of essential goods and services, with many anticipating further price increases. The survey also indicates that borrowing costs are expected to rise.
The data further shows a dramatic increase in consumer borrowing, with Nigerians taking out approximately N4.82 trillion in loans between January and March 2024. This has led to a 268.9% rise in total consumer credit outstanding, reaching N8.24 trillion by March 2024. Personal loans have seen the most significant growth, accounting for 91.2% of the total credit, underscoring the heavy reliance on credit amidst economic challenges.
Overall, the survey paints a sobering picture of the financial pressures facing Nigerians, highlighting a period of increased borrowing and savings depletion as they navigate a challenging economic landscape.
