NBS reveals high inflation weakened Nigerians’ spending power in 2022

The National Bureau of Statistics (NBS) has disclosed that household final consumption grew by -12.47 per cent in the fourth quarter of 2022 compared to the 7.30 per cent growth rate of Q4 2021.

This disclosure was contained in the new Nigerian Gross Domestic Product Report (Expenditure and Income Approach) for Q3 and Q4 2022.

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The report partly read, “Household final consumption, in real terms, grew by -5.83 per cent and -12.47 per cent in Q3 and Q4 of 2022, respectively, on a year-on-year basis. However, these growth rates were lower compared to the growth rates of their corresponding quarters of 2021, which were 19.36 per cent and 7.30 per cent, respectively.”

On the reason for the negative growth, the NBS blamed inflation and challenging economic conditions in the country.

The NBS said, “Growth becomes negative in Q2 to Q4 2022 due to rising prices and challenging economic conditions. In Q3 and Q4 of 2022, growth rates were -5.83% and -12.47%, showing lower rates relative to the corresponding quarters of 2021.”

It was also disclosed that while household consumption for the entire year of 2021 grew 25.65 per cent, it weakened to -4.07 per cent in 2022.

The report read, “On an annual basis, 2022 grew by -4.07% compared to 25.65% in 2021.”

This consumption, which consists of expenditure incurred by resident households on individual consumption goods and services, accounted for 65.17 per cent of real GDP at market prices in Q3 of 2022 and 60.25 per cent in Q4 of 2022, according to the NBS.