CBN: “Consumers will shun luxury items in next few months” due to devaluation, unemployment index

CBN: “Consumers will shun luxury items in next few months” due to devaluation, unemployment index

The Central Bank Of Nigeria (CBN) has explained that most Nigerian consumers are not likely to purchase expensive or luxury items in the next 12 months.

The CBN made this known in its Consumer Expectations Survey (CES) Report for December 2020, released by the Statistics Department of the apex bank on Tuesday, December 22, in Abuja.

According to the report, most consumers believed that the next year would not be ideal for the purchase of high-costing items like vehicles and houses.

CBN said that most respondents to the survey expected the naira to appreciate, while the inflation rate would rise and increase in borrowing rate in the next 12 months.

According to the report, the overall buying intention index in the next 12 months stood at 29.9 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months.

The report reads, “The consumers’ overall confidence outlook was pessimistic in Q4 2020 standing at -14.8 index points.

“Consumers attributed this unfavourable outlook to declining economic conditions; family financial situation; and declining family income.

“Most consumers expect that prices of goods and services will rise in the next 12 months; with an index of 43.1 points – largely driven by savings, food and other household needs.

“Consumers generally expect the unemployment rate to rise in the next year; with the unemployment index for the next 12 months remaining positive at 36.9 points in Q4 2020.’’

Meanwhile, Lai Mohammed says his only regret as a minister is that some Nigerians have failed to appreciate that the administration of President Muhammadu Buhari is doing so much with little resources.

Lai Mohammed, the Minister of Information and Culture, stated this at a press briefing in Abuja on Tuesday, December 22.

He said with dwindling resources, no government in the history of Nigeria had implemented programmes alleviating poverty among women; as well as vulnerable groups; while creating jobs for the youths as the Buhari administration had done.

The minister said his regret is that some Nigerians have failed to appreciate the efforts of the government; but keep celebrating negative developments.

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“My regret in this government is that Nigerians have failed to appreciate that the government is doing much more with much less.

“2010 to 2014 crude oil was selling from 100 dollars to 140 dollars per barrel. But the highest we have sold since we came in is 60 dollars.

“Sometimes at the peak of COVID-19 pandemic; we were even paying for storage because nobody wanted to take our crude.

“With the drop in revenues and security challenges this government has not retrenched one person; but put in place programmes to cushion the effects of the pandemic,’’ he said.

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