NBS: Nigerians Spent N61.08 Trillion on Food, Household Goods in H1 2023 - The Top Society

NBS: Nigerians Spent N61.08 Trillion on Food, Household Goods in H1 2023

The National Bureau of Statistics (NBS) has reported that Nigerians expended a total of N61.08 trillion on food, household items, and services during the first six months (H1) of 2023. This reflects a 2.85 percent increase compared to the N59.39 trillion spent in the same period in 2022, measured at the current purchasers’ value.
According to the NBS’s ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach): Q1, Q2,’ household consumption maintains its position as the largest contributor to the country’s Gross Domestic Product (GDP). The report indicates that Household Consumption Expenditure in Q1 and Q2 of 2023 grew by -24.95 percent and 3.30 percent in real terms, year-on-year. These growth rates, although lower than those recorded in Q1 of 2022, were higher than Q2 of 2022.
The report read:

“Household Consumption Expenditure, in Q1 and Q2 of 2023 grew by -24.95 per cent and 3.30 per cent in real terms, year-on-year. The growth rates in Q1 and Q2 of 2023 were lower than the rates recorded in Q1 of 2022 and higher than Q2 of 2022.”

“Household Consumption accounted for the largest share of real Gross Domestic Product at market prices, representing 57.18 per cent and 64.05 per cent in Q1 and Q2 of 2023 respectively, compared to 78.02 per cent and 63.65 per cent in the corresponding quarters of 2022.”

The NBS explained that household consumption expenditure encompasses spending, including imputed expenditure, by resident households on individual consumption goods and services. In Q1 and Q2 of 2023, Household Consumption represented 57.18 percent and 64.05 percent of the real Gross Domestic Product at market prices, respectively. This is a notable shift from the corresponding quarters of 2022 when the shares were 78.02 percent and 63.65 percent.
In 2020, real household consumption expenditure experienced a decline in Q1 and Q2, marked by negative growth rates due to the impact of the pandemic. However, positive growth rates were observed from Q3 of 2020 as the economy began to recover. Growth turned negative again from Q2 of 2022 to Q1 of 2023, influenced by factors such as rising prices, cash scarcity, and challenging economic conditions.
The first quarter of 2023 saw Nigeria’s GDP grow by 2.31 percent on a year-on-year basis, primarily driven by cash scarcity in the economy. In Q2, there was a slight increase in GDP growth to 2.51 percent, indicating a nuanced economic landscape. The report suggests that the trajectory of household consumption will play a crucial role in shaping the country’s economic performance in the coming quarters.
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