The Digest:
Nigerian households slashed real spending by over N14 trillion in 2024, a stark indicator of how inflation is eroding purchasing power. While nominal spending rose, rising prices meant families paid more for significantly less, deepening a cost-of-living crisis that has pushed millions closer to poverty.
Key Points:
- Household final consumption fell by N14.29tn in real terms in 2024
- This represents a 31% annual contraction in the volume of goods and services
- Nominal spending increased by 18%, highlighting how inflation swallowed budgets
- Real employee compensation also dropped by nearly 10% despite higher nominal wages
- Headline inflation climbed from 29.9% to almost 35% over the year
- Soaring costs of food, transport, and energy forced severe cutbacks
- The World Bank estimates 14 million more Nigerians entered poverty in 2024
Sources: Punch, Vanguard
