Household consumption in Nigeria expanded for the first time in 15 months for the second quarter of 2023, according to a new report by the National Bureau of Statistics (NBS).
Africa’s biggest economy recorded a positive real growth rate of household consumption expenditure of 3.30 percent from a negative growth of 24.95 percent in the previous quarter.
“The growth rate of Q1 of 2023 was lower compared to the growth rate of the corresponding quarter of 2022 which was 8.66 percent and Q2 of 2023 was higher than Q2 of 2022 which recorded -5.21 percent,” the report said.
It said the observed trend since 2020 indicates that real household consumption expenditure declined in Q1 and Q2 of 2020, accounting for negative growth rates informed by the pandemic.
“However, positive growth rates were recorded since Q3 of 2020 as recovery from the pandemic was witnessed, while growth became negative from Q2 of 2022 to Q1 of 2023 occasioned by rising prices, the cash crunch witnessed earlier this year as well as the current challenging economic conditions,” it added.
According to NBS, growth in Q2 of 2023 stood positive at 3.30 percent, a departure from the negative trend recorded in the previous quarter.
Household consumption accounts for the largest share of real Gross Domestic Product at market prices. It consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services.