The Central Bank of Nigeria (CBN) has released a startling survey indicating that Nigerian households will be compelled to allocate a significant portion of their earnings towards food expenses over the next six months. This development comes as the inflation rate reaches alarming levels.
The latest data from the National Bureau of Statistics (NBS) shows an inflation rate of 33.40 percent, with food inflation soaring above 40 percent. This economic climate is straining household budgets nationwide.
The CBN’s Household Expectation Survey, conducted from July 22 to 26, 2024, highlights the growing financial pressure on Nigerians. With a remarkably high response rate of 99.7 percent, the survey was based on a representative sample of 1,665 households across all 36 states and the Federal Capital Territory, drawn from the NBS master sample list.
The survey reveals that many Nigerians are adjusting their spending habits in response to the economic pressures. The majority plan to cut back on non-essential items in the coming months. Notably, the report anticipates that households will dedicate approximately 54.9 percent of their income to food expenditures within the next six months. This marks a significant shift in spending patterns, reflecting the acute impact of inflation on daily life.
This trend underscores the broader implications of inflation on household financial management and highlights the urgent need for effective economic strategies to alleviate the financial burden on Nigerian families.
