Nigerians spent a sum of N108.47 trillion on household consumption in 2021, representing an 11% increase compared to N97.72 trillion incurred in the previous year, and a slight increase above the N108.1 trillion spent in 2019.
This is according to the recently released Nigerian Gross Domestic Product Report (Expenditure and Income Approach), released by the National Bureau of Statistics (NBS).
In contrast to the nation’s nominal GDP for the review year, household consumption accounted for 62.5% of the country’s annual GDP. Similarly, consumption expenditure for non-profit organizations serving households increased by 11.4% to N964.9 billion compared to N865.8 billion recorded in 2020.
It is worth noting that the significant increase recorded in household expenditure can be attributed to a favourable base period, which was marred by the COVID-19 pandemic, causing the Nigerian economy to fall into a recession, printing an annualised contraction of 1.92% in 2020.
- Household Consumption Expenditure, in Q3 and Q4 2021 grew by 19.36% and 7.30% respectively in real terms, year-on-year.
- The annual growth rate in real household consumption expenditure stood at 25.65% compared to 1.69% decline recorded in 2020.
- Government Consumption Expenditure recorded growth rates of -39.51% and -16.76% in Q3 and Q4 2021 respectively, year on year, while annual growth rate stood at -34.03% in 2021 compared to 61.58% in 2020.
Net exports grew in real terms in Q3 and Q4 2021 by -38.27% and 1.35% respectively. On an annual basis, net exports grew by -55.77% in 2021 compared to -13.17% recorded in 2020.