NigeriaNigerians Cut Back On Spending
Households prioritize food over investments and big purchases as inflation concerns rise. The Central Bank of Nigeria says 77.2% of households perceive inflation as high, up from 67.2% in August.
Global Newsflix 2 min read
The Central Bank of Nigeria's latest Household Expectation Survey Report shows that consumer sentiment dropped sharply in September 2026. The overall Consumer Sentiments Index fell to -18.7 points, down from -9.9 points in August.
The share of households that perceive inflation as high rose to 77.2% in September, according to the Central Bank of Nigeria's Inflation Expectations Survey. This is up from 67.2% in August, with households recording a sharper increase than businesses.
Rural households reported a higher perception of inflation at 79.1%, compared with 76.2% among urban households. Households earning below ₦70,000 recorded the highest inflation perception at 80%, while those earning above ₦350,000 to ₦400,000 recorded the lowest at 59.1%.
Respondents identified energy costs, interest rates, exchange rates, and insecurity as factors contributing significantly to their perception of inflation. Despite the increase in current inflation perceptions, respondents expected inflation to moderate gradually over the next three and six months.
The Central Bank of Nigeria said businesses showed stronger expectations of moderation over the six-month period. About 26.9% of businesses expected inflation to moderate over the next six months, compared with 15.8% expecting moderation over the next month.
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.
Mayor Akinpelu said Nigeria's inflation and interest rates are still too high. The Inflation Expectations Index stood at 25.1 points in September, below the 43.1-point Inflation Perception Index.
Key facts
- 77.2% of households perceive inflation as high, up from 67.2% in August
- Consumer sentiment dropped sharply in September 2026, with the overall Consumer Sentiments Index falling to -18.7 points
- Households prioritize food over investments and big purchases
- Respondents expect inflation to moderate gradually over the next three and six months
Three perspectives
Neutral
The Central Bank of Nigeria's survey provides insight into the concerns of households and businesses. As inflation remains a major concern, respondents expect it to moderate gradually. The situation will likely continue to evolve as households and businesses adapt to the economic conditions.
Positive
Despite the challenges posed by inflation, respondents expect it to moderate gradually over the next three and six months. This suggests that households and businesses are optimistic about the future and expect the economy to improve.
Negative
The rise in inflation perception and the drop in consumer sentiment are concerning signs for the economy. Households are prioritizing food over investments and big purchases, which could have long-term implications for economic growth.
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