Consumers Say The Economy Is Yet To Improve

The May 2025 Household Expectations Survey report from the Central Bank of Nigeria (CBN) indicated a decline in consumer pessimism, with the overall consumer sentiment index rising to -12.9 points in May from -15.3 in April 2025. The survey evaluated consumer sentiment across three essential areas: the economic condition, family financial situation, and family income.

Respondents showed pessimism in all categories — the economic condition at -12.6, family financial situation at -20.3, and family income at -5.7 index points. Looking forward, consumer sentiment remained cautious, with a slightly pessimistic outlook for June at -2.7 index points. Nevertheless, expectations improved for the latter half of the year, with optimism returning in August (5.1) and further strengthening by November (14.8), suggesting a belief in gradual economic recovery.

However, the household perception index regarding prices remained significantly negative at -26.7 index points, indicating widespread concerns that current prices are excessively high. To enhance consumer confidence and support sustainable economic recovery, policies such as effective management of foreign exchange and inflation are essential.

Additionally, the report highlighted the strategic importance of investing in critical sectors like transport, power, and raw materials. These investments are crucial for reducing production costs, which could help alleviate inflationary pressures and contribute to price stabilization, ultimately creating a more favorable economic environment for households and businesses alike. SOURCE: CSEA Africa