The National Bureau of Statistics has said that Nigerian residents spent N108.47 trillion on household consumption in 2021 in nominal terms.
The figure is 11 percent higher than the N97.72tn recorded in 2020. This is an increase amid double-digit inflation of 15.92 recorded in march 2022.
The NBS, which disclosed this in its recent Expenditure and Income Gross Domestic Product report, said that the household consumption accounted for the biggest share of the expenditure GDP.
The household consumption expenditure includes imputed expenditure incurred by resident households on individual consumption goods and services.
In the first quarter of 2021, household consumption expenditure was N25.62tn, dropping to N24.28tn in Q2 2021.
An increase to N28.53tn was recorded in Q3 2021, and a further increase to N30.04tn in Q4 2021.
The report further disclosed that in nominal terms, there was a 10.92 per cent and 6.12 per cent increase in the third quarter and further quarter of 2021, respectively.
The report read in part, “In nominal terms, household final consumption expenditure grew by 10.92 per cent in Q3, and 6.12 per cent in Q4 2021. The annual growth rate of 11.00 per cent was recorded in 2021. This growth rate was lower by 20.59 percentage points than the figure recorded in the previous year which stood at -9.59 per cent.
“On a quarter-on-quarter basis, growth was recorded at 17.53 per cent in Q3, and 5.29 per cent in Q4 2021, compared to the preceding year’s of 22.58 per cent, and 10.05 per cent in the corresponding quarters. Household consumption accounted for 70.85 per cent of real GDP at market prices in Q3 2021, and 71.35 per cent in Q4 2021.”
However, the Bureau said that government expenditure fell year-on-year by 80 percentage points to -34.03 per cent in 2021 from 61.5 per cent in 2020.
According to the report, the high rate of government expenditure in 2020 was due to the economic stimulus of the government to counter the COVID-19 pandemic during the period. Therefore, it is not surprising that a decline was noted in 2021.