Nigerians Spending Most on Food as Investments, Others Take Backseat- Survey

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

The survey showed that food remained the dominant expenditure priority among households in September, while spending on investments, houses, motor vehicles and consumer durables took the backseat.

According to the report, “food remained the highest spending priority” with households also prioritizing transportation, other household goods, education, and electricity and water. Food, transportation, other household goods and education constituted the major areas of expected expenditure over the next three and six months.

The survey put the household expenditure index for food at 56.1 points in September, significantly 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 pattern is expected to persist over the coming months, with food recording an expenditure index of 54.7 points for the next three months and 54.9 points for the next six months.

The preference for essential consumption over investment was also reflected in the survey’s major purchase outlook, where households showed strong reluctance to commit income to assets and other high value items.

Investment recorded a negative index of 50.7 points in the current month, while purchase of consumer durables stood at negative 49.5 points. Purchase of motor vehicles recorded negative 67.3 points, while house purchase was the weakest at negative 68.2 points.

The report noted that households “showed reluctance to spend large parts of their income on major purchases like House, Car/motor vehicles, Investments,” with negative sentiment recorded across the periods covered by the survey.

For the next three months, investment remained firmly in negative territory at 45.5 points, while the indices for house and motor vehicle purchases stood at negative 66.4 points and negative 66.7 points respectively.

The outlook was similarly weak over the next six months, with investment recording negative 60.8 points, compared with negative 62.8 points for house purchases and negative 43.4 points for motor vehicles.

The reluctance to invest or make major purchases came as overall consumer sentiment weakened further in September. The Overall Consumer Sentiments Index fell to negative 18.7 points from negative 9.9 points in August, indicating a more pessimistic outlook among households.

The survey showed that the Economic Conditions Index stood at negative 21.5 points, while the Family Financial Situation Index fell to negative 23.9 points and Family Income Sentiments stood at negative 10.5 points.

“Overall, households remained cautious in September 2026,” the report stated, attributing the caution to “persistent concerns about prices, interest rates and household finances,” despite expectations of a gradual improvement in consumer confidence.

The survey also showed that households 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.

However, households reported the lowest perceptions of price changes for food and telecommunications services, according to the report. Price expectations remained elevated, with the average index for the next three months standing at 29.7 points and 28.4 points for the next six months.