The CBN reports improvement in August Consumer Confidence Index
The Central Bank of Nigeria (CBN) has reported a modest improvement in consumer sentiment, according to its August 2025 Household Expectations Survey. The survey showed that the overall consumer confidence index rose to -7.2 index points in August from -12.7 index points recorded in July 2025. While this upward movement signals better consumer outlook, overall confidence remains in negative territory, suggesting that Nigerians are still generally cautious about economic prospects.
The report, which measures how households perceive their economic condition, family financial situation, and family income, provides an important snapshot of consumer expectations in the short and medium term.
For Economic Condition, the index stood at -4.3 points, reflecting persistent but slightly reduced pessimism about Nigeria’s broader economic environment. In contrast, the Family Financial Situation index improved to -17.0 points, compared to -21.0 points in July. This indicates that while many households still feel financial pressure, there has been a mild easing in concerns about personal finances.
Similarly, the Family Income Sentiment index rose sharply to -0.3 points in August 2025, an improvement from -4.7 points in the previous month. This shift implies growing optimism among households regarding income prospects and earning potential, likely influenced by marginal wage adjustments and stabilising employment conditions in some sectors.
When projecting into the near future, the survey shows mixed expectations. Consumers remain slightly pessimistic for September 2025 (-0.2 index points) but express optimism for November 2025 (7.9) and February 2026 (14.9). This upward trend in the medium-term outlook suggests that Nigerians anticipate a gradual strengthening of economic activities and improved purchasing power as inflation moderates and incomes stabilise.
To maintain this steady improvement in consumer confidence, experts suggest that economic policy should focus on sustaining price stability, supporting income growth, and resolving deep-rooted structural challenges such as unemployment, limited credit access, and uneven wage distribution. Addressing these issues will be crucial to improving household financial resilience and boosting aggregate demand in the economy.
Furthermore, policymakers are encouraged to strengthen targeted social protection programmes aimed at cushioning the effects of inflation and the rising cost of living on vulnerable groups. Initiatives such as food subsidies, transport support, and conditional cash transfers could help ease financial strain on low-income families and reinforce consumer optimism.
In the long term, fostering inclusive growth through investment in job creation, microcredit expansion, and small business support will be vital in translating short-term gains into sustained economic confidence. The CBN’s August 2025 report underscores the importance of aligning monetary and fiscal strategies to nurture stability, restore purchasing power, and build a more resilient consumer base capable of driving Nigeria’s post-reform economic recovery. For the full Household Expectations Survey and other CBN economic reports, visit www.cbn.gov.ng.
