Nigerians to witness tougher times amid rising cost of living
Nigerians expected to experienced increasing economic hardship as cost of living continues to rise, despite federal government’s economic reforms, according to the Household Expectations Survey, the Central Bank of Nigeria (CBN), has said.
The survey revealed a growing expectation among Nigerian households that they will need to rely on savings or take on debt to meet daily expenses, highlighting the financial strain faced by many amid rising costs of living.
The survey, which includes the Consumer Expectations Survey (CES) and Inflation Attitude Survey (IAS), was conducted between July 22-26, 2024, recorded a 99.7 per cent response rate from a sample of 1,665 households.
Majority of respondents admitted that the current economic environment is not conducive to purchasing big-ticket items such as consumer durables, vehicles, or real estate, suggesting a lack of consumer confidence and reduced purchasing power.
The survey also revealed widespread concerns about the depreciation of the naira, with most respondents expecting the currency to lose value in the near term, while many of them anticipate that borrowing rates, inflation, and unemployment will all rise in the coming months.
Some households were optimistic that the economy would weaken further if inflation accelerates, fearing that price increases could outpace wage growth, thereby eroding their purchasing power.
When asked about the trade-off between inflation and interest rates, the majority of respondents favoured lower interest rates, suggesting that easing the cost of borrowing is seen as a potential relief in the face of rising prices.
The survey also indicated that most respondents are aware of the role of the Monetary Policy Committee (MPC) of the CBN in setting interest rates and understand that its decisions directly influence short-term interest rates in Nigeria. This awareness reflects the growing public interest in monetary policy as a tool to combat economic instability.
Although the federal government believe that these current reforms are necessary for long-term economic stability, but the immediate impact has been a sharp increase in the cost of living, impacting negatively on household budgets.
The survey underscores the public’s anxiety over the effectiveness of current economic policies and the overall direction of the economy.
