The National Bureau of Statistics (NBS) has reported that Nigerians’ household expenditures rose to N54.84 trillion in nominal terms in the first half of 2021, representing a 13.7% increase when compared to N48.22 trillion recorded in the corresponding period of 2020.
The agency, in its latest ‘Expenditure and Income GDP report, however, disclosed that the expenditure value when compared to the second half of last year’s totaling N59.25 trillion, dipped by a 7.45%.
Household final expenditure consists of expenditure, including imputed expenditure incurred by resident households on individual consumption of goods and services.
A further breakdown of the latest report indicated that household final consumption expenditure grew by 8.90% in Q1, and 19.08% in Q2 2021 while the annual growth rate of -0.57% was recorded last year, representing -10.42% points lower than the expenditure recorded in the previous year which stood at 9.85%.
According to the Bureau, in the half year under review, final consumption expenditure of non-profit institutions serving household increased to N504.38 billion, which is 18.6% higher than N425.29 billion recorded in the previous period.
This is even as it reported that the final consumption expenditure of the general government stood at N4.23 trillion in the review period.
A further analysis of the ‘Expenditure and Income GDP report reflected that Nigeria’s net exports contracted in real terms in Q1 and Q2 2021 by 110.50% and 74.49% respectively. On an annual basis, net exports also contracted by 30% in 2020 compared to 7.64% growth recorded in the preceding year
The Bureau further disclosed that Compensation of Employees in the first and second quarters of 2021 grew by 9.26%, and 19.44% respectively in real terms on a year-on-year basis, compared to the 0.96% growth rate in 2020 and 8.99% recorded in 2019.
It also stated that National Disposable Income decreased by 2.25% in Q1 2021 and 5.35% in Q2 2021, but grew by 3.57% and 2.12% in Q1 2020 and Q2 2020 on a year-on-year basis in real terms, resulting a better growth rate of 1.57% for annual figure in 2020 compared to a relatively marginal growth rate of 0.35% in 2019.
The NBS noted that the year-on-year growth was in line with the expansion recorded in Nigeria’s national GDP in the period under review.
It would be recalled that Nigeria’s GDP in real terms grew by 0.51% and 5.01% in Q1 and Q2 2021, owing to a favourable base period.
Household Consumption accounted for the largest share of real GDP at market prices, representing 53.68% and 51.82% in Q1 and Q2 2020 respectively, compared to 76.83% and 72.88% in the corresponding quarters of this year
The Gross Domestic Product (GDP) is the value of all goods and services available for final uses and export in a specified period.
