Nigerian households now less pessimistic about the macro economic conditions
The September 2025 Households Expectations Survey shows a modest improvement in the mood of Nigerian consumers, even though sentiment remained negative overall with Many Nigerian households now less pessimistic about the maco economic conditions. The headline Consumer Sentiment Index stood at -6.4 index points, improving from -7.2 points recorded in August 2025. This suggests that while respondents are still cautious, perceptions about the economic environment have become slightly less pessimistic.
A closer look at the components of the survey reveals notable shifts. The Economic Condition Index rose from -4.3 index points in August to -2.9 in September 2025, indicating that respondents felt slightly better about the broader economic outlook.
Similarly, the Family Financial Situation Index recorded a marginal improvement, moving from -17.0 in August to -16.5 in September. This suggests households may be feeling less strained, even if financial pressures remain significant. For the first time since April 2025, the Family Income Sentiment Index turned positive, registering 0.1 in September, hinting at early signs of renewed confidence in income prospects.
Looking ahead, consumers expressed stronger optimism about future economic performance. Sentiment regarding the macroeconomy in October 2025 reached 1.4 index points, while expectations for December 2025 climbed to 8.8 points. Projections for March 2026 also reflected ongoing confidence in the direction of the general economy, suggesting that households believe conditions will improve over the medium term.
However, inflation remains a major concern. Consumer perceptions of price levels were still negative in September, with the index at -6.4 points. Respondents continued to describe current prices as high and anticipated further increases over the next one month, three months, and six months. This persistent anxiety over rising prices shows that inflationary pressures are still being felt deeply at the household level.
Addressing these inflation concerns requires decisive policy intervention. Targeted investment in critical sectors such as transport, energy, and the supply chain for raw materials would help bring down production and distribution costs. Reductions in logistics bottlenecks, improved power supply, and improved factory input availability would contribute to stabilising prices and easing pressure on household budgets. By strategically tackling these structural challenges, policymakers can improve purchasing power, strengthen household confidence, and support broader economic stability.
