The National Bureau of Statistics (NBS) has disclosed that Nigerians expended a total of N61.08 trillion on food, household items, and services in the first half of 2023.
This marks a 2.85% increase from the N59.39 trillion spent in the corresponding period of 2022 at the current purchasers’ value.
According to the ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach): Q1, Q2’ by the NBS, household consumption remains the largest contributor to the country’s Gross Domestic Product (GDP).
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The report reveals that household consumption expenditure in Q1 and Q2 of 2023 grew by -24.95% and 3.30% in real terms year-on-year.
Although these growth rates were lower than those recorded in Q1 of 2022, they surpassed Q2 of 2022.
Household consumption expenditure comprises spending, including imputed expenditure, by resident households on individual consumption goods and services.
It accounted for the most significant share of real GDP at market prices, representing 57.18% and 64.05% in Q1 and Q2 of 2023, respectively.
This is compared to 78.02% and 63.65% in the corresponding quarters of 2022.
The report also highlights the impact of the COVID-19 pandemic on real household consumption expenditure.
In 2020, there was a decline in Q1 and Q2 due to negative growth rates resulting from the pandemic. However, positive growth rates were observed from Q3 of 2020 due to the economic recovery.
From Q2 of 2022 to Q1 of 2023, growth became negative again due to rising prices, cash shortages, and worsening economic conditions.
In Q1 2023, Nigeria’s GDP grew by 2.31% year-on-year, influenced by cash scarcity in the economy. In Q2, GDP growth increased slightly to 2.51%.
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