Nigerians Prioritise Food, Shelve Investments, House Purchases – CBN Survey

Nigerian households are prioritising food over investments and other major purchases as rising prices and weak household finances continue to shape spending decisions, according to the Central Bank of Nigeria’s (CBN) September 2026 Household Expectations Survey.

The survey found that food remained the dominant expenditure priority in September, followed by transportation, other household goods, education, and electricity and water. The CBN said food, transport, household goods and education were also expected to remain the main spending areas over the next three to six months.

Food recorded an expenditure index of 56.1 points in September, well ahead of other household goods at 28.3 points, education at 27.6 points, electricity and water at 17.1 points, and telecommunications at 9.3 points. The food expenditure index was projected at 54.7 points over the next three months and 54.9 points over the next six months, indicating that essential consumption would remain central to household budgets.

In contrast, households showed little appetite for high-value commitments. Investment recorded a negative sentiment index of 50.7 points in the current month, while consumer durables stood at a negative 49.5 points. Motor vehicle purchases recorded a negative 67.3 points, while house purchases were the weakest at a negative 68.2 points.

The weak outlook persisted across the survey horizon. Over the next three months, investment sentiment stood at negative 45.5 points, while house and motor vehicle purchases were at negative 66.4 points and negative 66.7 points respectively. Over six months, investment was negative 60.8 points, house purchases negative 62.8 points and motor vehicles negative 43.4 points.

The reluctance to commit income to assets and major purchases coincided with a further deterioration in consumer confidence. The Overall Consumer Sentiments Index fell to negative 18.7 points in September from negative 9.9 points in August, a decline of 8.8 points, pointing to a more pessimistic outlook among households.

The Economic Conditions Index stood at negative 21.5 points, while the Family Financial Situation Index was negative 23.9 points and Family Income Sentiments stood at negative 10.5 points. The CBN said households remained cautious due to persistent concerns about prices, interest rates and household finances, although it expects confidence to improve gradually over the next six months.

Households also continued to perceive prices as high. The average Consumer Sentiments Index for prices of selected items rose to 33.5 points in September from 23.0 points in August. Price expectations remained elevated, with indices of 29.7 points for the next three months and 28.4 points for the next six months.

The findings suggest that, despite expectations of a gradual recovery in confidence, Nigerian households are still directing available income towards immediate needs rather than long-term financial commitments.