Consumers’ confidence plummets in Sept as inflation concerns deepen
Consumer Sentiment Dips Sharply Amid Rising Prices
By Elizabeth Adegbesan
LAGOS — Consumer sentiment in Nigeria declined significantly in September 2026 as households faced escalating price pressures, according to the Central Bank of Nigeria’s (CBN) latest Household Expectation Survey Report. The overall Consumer Sentiments Index (CSI) fell to -18.7, a stark decrease from -9.9 in August.
The report indicates a growing caution among the public, driven by the rising cost of living. Perceptions of price increases have intensified, with the average price sentiment index rising to 33.5 from 23.0 the previous month.
The survey found that more than half of respondents, specifically 61.1%, believe that rapid price increases could harm the economy, reflecting widespread anxiety about inflation. This financial strain has led households to prioritize essential needs over discretionary spending, CBN officials noted.
Food continues to be the largest expenditure category for families, followed closely by household goods, education, transportation, and utilities. As a result, the conditions for purchasing larger items have deteriorated. The average Buying Conditions Index (BCI) and Buying Intention Index (BII) registered at 24.4 and 16.6 points, respectively, both significantly below the neutral threshold of 50.
The report emphasized that households remain hesitant to make substantial purchases, particularly in the areas of housing, automobiles, investments, and consumer durables.
Monetary policy preferences among consumers reveal a split perspective on managing economic challenges. While 62.2% of respondents favor lower lending rates to facilitate borrowing, 45.1% support higher rates.
Despite prevailing negative sentiment, the survey suggests a potential for gradual recovery. Households anticipate some improvement in consumer confidence, projecting the CSI to increase to -8.7 points next month, -0.4 points in three months, and enter positive territory at 7.1 points in six months. However, the immediate outlook remains cautious.
“Overall, households remained cautious in September 2026, reflecting persistent concerns about prices, interest rates, and household finances,” the CBN concluded.
