Nigerians delay car, home buys amid high costs, steep borrowing rates
Nigerians are delaying major purchases such as cars, homes and household appliances as high living costs and steep borrowing rates squeeze household finances, according to the Central Bank of Nigeria’s latest Household Expectations Survey. The survey shows buying conditions for motor vehicles, consumer durables and buildings or landed property all stayed below 30 points, signalling that most respondents view the current environment as unfavourable for big-ticket spending. In July, the Consumer Sentiment Index for average prices fell to 24.3 from 28.9 in June, while willingness to purchase was even weaker—motor vehicles at 18.7 points, buildings and landed property at 19.2, and consumer durables at 24.4. Household outlook indices were negative across the board: house purchases at –56.9, cars at –56.3, appliances at –36.8, investment intentions at –35.7 and rent at –24.6. Although the CBN expects modest improvement in spending expectations over the next six months, overall sentiment remains subdued. Consumers continue to worry about inflation and borrowing costs: 63.4% said the economy would worsen if inflation rose further, 35.6% anticipate higher lending rates in the next three months, while 57.2% would prefer rates to fall and 46.5% acknowledge that higher rates are needed to tame inflation. Food remains the top spending priority, followed by household goods, education, transportation, electricity and water. With headline inflation at 15.91% in June and the Monetary Policy Rate held at 26.5%, borrowing remains expensive, which could weigh on real estate, auto sales, manufacturing and consumer finance sectors in the coming months.