Nigerian households are prioritising essential spending, with food remaining the dominant expenditure priority in September, followed by transportation, household goods, education, and electricity and water. This trend is expected to continue over the next three to six months, according to the Central Bank of Nigeria's (CBN) September 2026 Household Expectations Survey. The survey highlights the impact of rising prices and weak household finances on spending decisions.
The CBN reported that food recorded an expenditure index of 56.1 points in September, significantly ahead of other household goods at 28.3 points, education at 27.6 points, electricity and water at 17.1 points, and telecommunications at 9.3 points. This indicates that essential consumption will remain central to household budgets. The food expenditure index is projected to remain high, at 54.7 points over the next three months and 54.9 points over the next six months.
In contrast, households showed little appetite for high-value commitments, with investment recording a negative sentiment index of 50.7 points in the current month. Consumer durables stood at a negative 49.5 points, while motor vehicle purchases recorded a negative 67.3 points, and house purchases were the weakest at a negative 68.2 points. This reluctance to commit income to assets and major purchases suggests a cautious approach by households.
The weak outlook for investments and major purchases persisted across the survey horizon. Over the next three months, investment sentiment stood at negative 45.5 points, while house and motor vehicle purchases were at negative 66.4 points and negative 66.7 points, respectively. Over six months, investment was negative 60.8 points, house purchases negative 62.8 points, and motor vehicles negative 43.4 points.
The Overall Consumer Sentiments Index fell to negative 18.7 points in September from negative 9.9 points in August, a decline of 8.8 points, indicating a more pessimistic outlook among households. The Economic Conditions Index stood at negative 21.5 points, while the Family Financial Situation Index was negative 23.9 points, and Family Income Sentiments stood at negative 10.5 points.
Households continued to perceive prices as high, with the average Consumer Sentiments Index for prices of selected items rising to 33.5 points in September from 23.0 points in August. Price expectations remained elevated, with indices of 29.7 points for the next three months and 28.4 points for the next six months. This suggests that households remain cautious due to persistent concerns about prices, interest rates, and household finances.
Despite expectations of a gradual recovery in confidence, Nigerian households are still directing available income towards immediate needs rather than long-term financial commitments. The CBN expects confidence to improve gradually over the next six months, but for now, households are prioritising essential spending over investments and major purchases.
Key points
- Food remains the dominant expenditure priority for Nigerian households.
- Households show little appetite for high-value commitments such as investments and major purchases.
- Consumer confidence is expected to improve gradually over the next six months.
