Why More Consumers Are Feeling Good About the Economy

The Central Bank of Nigeria (CBN) March 2025 Household Expectations Survey Report indicates that the overall consumer confidence index was at -8.1 points, indicating that consumers’ outlook was pessimistic for March. Compared to February 2025 (-19.0), there was a decrease in pessimism in March 2025.

Consumers’ outlook is based on three factors – economic condition, family financial situation, and family income. Excluding family income, all indicators were in the pessimistic range in March. The report also shows that consumers’ outlook on the macroeconomy is optimistic for April 2025 (1.2 index points), June 2025 (9.3 index points), and September 2025 (18.3 index points).

The survey respondents also feel that prices are slowly moderating, compared to the previous month. To sustain this positive outlook in the coming months, which ensures confidence in the economy, targeted approaches to reduce macroeconomic volatility, such as sound forex management, are needed. Additionally, critical investment in the transport and power sectors is vital to reduce the cost of production for businesses, thereby translating to lower prices of goods.