In the first half of 2023, Nigerians collectively spent N61.08 trillion on various household items, services, and food, according to the latest report from the National Bureau of Statistics (NBS), News About Nigeria gathered.
This marks a 2.85% increase from the N59.39 trillion spent in the same period in 2022, calculated at current purchasers’ value.
The NBS revealed that household consumption remains the largest contributor to the country’s Gross Domestic Product (GDP).
The Household Consumption Expenditure for Q1 and Q2 of 2023 experienced growth of -24.95% and 3.30% in real terms, year-on-year.
While these growth rates were lower than those recorded in Q1 of 2022, they surpassed the figures from Q2 of 2022.
Household consumption expenditure includes both actual and imputed expenditure incurred by resident households on individual consumption goods and services. During Q1 and Q2 of 2023, household consumption accounted for 57.18% and 64.05% of real GDP at market prices, respectively.
This is in comparison to 78.02% and 63.65% in the corresponding quarters of 2022.
The report highlighted that in 2020, real household consumption expenditure faced a decline in Q1 and Q2 due to the pandemic.
Positive growth rates were then observed from Q3 of 2020 as the country recovered. However, from Q2 of 2022 to Q1 of 2023, growth turned negative, influenced by factors like rising prices, cash shortages, and challenging economic conditions.
The GDP for Q1 and Q2 of 2023 showed a year-on-year growth of 2.31% and 2.51%, respectively, reflecting the impact of cash scarcity in the economy.
The report suggests a complex economic landscape influenced by various factors, including the recovery from the pandemic and ongoing economic challenges.
