Nigerians borrow N4.82trn in Q1'24 as consumer confidence slides to negative 9.1 points

Nigerians borrow N4.82trn in Q1’24 as consumer confidence slides to negative 9.1 points

Business a.m.

The Household Expectations Survey for July 2024, conducted by the Central Bank of Nigeria (CBN), has indicated a sharp decline in consumer confidence among Nigerians, with the index for the next three months plummeting to a worrying negative 9.1 points.

The survey, which collected data from 1,665 households across the country, has revealed a disturbing trend of decreased consumer confidence, suggesting that Nigerians are growing increasingly pessimistic about their financial future.

The Consumer Confidence Index for July 2024 plunged to a disconcerting -41.7 points, signaling a significant financial burden for households across the country.

The data presented in the survey revealed a significant increase in consumer borrowing, with Nigerians acquiring a N4.82 trillion in loans between January and March 2024. This rapid increase in borrowing, amounting to a 268.9 percent rise in total consumer credit outstanding by March 2024. The largest share of this growth in credit is attributed to personal loans, which represent 91.2 percent of the total credit.

The survey also found that Nigerians are particularly worried about the rising costs of essential goods and services, as well as the prospect of further price increases in the near future. In addition, respondents to the survey expressed concern over the potential for borrowing costs to increase, compounding the financial difficulties already facing many households.

According to the survey, many Nigerian households are anticipating economic challenges and are preparing to make financial adjustments, including borrowing money and utilising their savings, to cope with these challenges.

The survey further underscores the widespread anxiety felt by Nigerians regarding the worsening economic conditions and their impact on family financial stability. This anxiety, it noted, has led many Nigerians to anticipate either depleting their savings or accruing debt to cope with the challenging economic climate.

Amidst the pervasive pessimism captured by the survey, the survey report highlights a small glimmer of hope for Nigerians in the form of an expectation for improvement in family income. This hope is reflected in an index of 1.6 points, indicating a modest but noteworthy expectation for a potential increase in household income.