The National Bureau of Statistics has revealed that Nigerians have spent N61.08tn on food and other household items and services in the first six months of 2023.
The 2.85 per cent is an increase from the N59.39tn that was spent in the corresponding period of 2022 at the current purchasers’ value.
According to the NBS, it was disclosed that in its ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach): Q1, Q2, household consumption continues to account for the largest share of the country’s Gross Domestic Product.
It said, “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.”
The statistics body explained that Household consumption expenditure consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services.
It further stated that “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.”
Going memory lane in 2020, real household consumption expenditure declined in Q1 and Q2, accounting for negative growth rates informed by the pandemic. However, positive growth rates were recorded from Q3 of 2020 due to recovery from the pandemic. Growth became negative from Q2 of 2022 to Q1 of 2023 because of rising prices, cash crunch, and worsening economic conditions.
Nigeria’s GDP grew by 2.31 per cent on a year-on-year basis because of cash scarcity in the economy, in the first quarter of 2023. In Q2, GDP growth increased slightly to 2.51 per cent.