Consumer sentiment in Nigeria plunged sharply in September 2026 as households faced intensifying price pressures and rising concerns about the cost of living. The Central Bank of Nigeria (CBN), in its latest Household Expectation Survey Report, said the overall Consumer Sentiments Index (CSI) fell to -18.7 points, from -9.9 points in August.
Key Highlights
- CBN’s Consumer Sentiments Index fell from -9.9 to -18.7 points in September.
- The average price sentiment index rose to 33.5 points from 23.0 points.
- 61.1 per cent of respondents said faster price increases would weaken the economy.
- Food remained the highest household spending priority.
- Buying Conditions and Buying Intention indices stood at 24.4 and 16.6 points, respectively.
- Consumer confidence is expected to improve gradually over the next six months.
The decline in consumer sentiment reflects growing caution among households as persistent price pressures squeeze disposable income and limit spending.
The CBN said perceptions of price increases intensified during the month, with the average price sentiment index rising to 33.5 points from 23.0 points in August.
According to the report, 61.1 per cent of respondents believed that faster price increases would weaken the economy, highlighting widespread concern over inflation and its impact on household finances.
Food Remains Top Spending Priority
The CBN survey showed that households continued to prioritise essential needs amid the economic pressure.
Food remained the highest spending priority, followed by household goods, education, transportation and utilities.
The pressure on household finances also affected demand for major purchases, with consumers showing limited willingness to buy high-value goods and assets.
The average Buying Conditions Index (BCI) stood at 24.4 points, while the Buying Intention Index (BII) was 16.6 points. Both indices remained significantly below the neutral 50-point threshold.
The report said households remained reluctant to make major purchases, particularly houses, motor vehicles, investments and consumer durables.
Mixed Views On Interest Rates
The survey also revealed divided views among households on monetary policy and lending rates.
While 62.2 per cent of respondents preferred lower lending rates to ease borrowing costs, 45.1 per cent favoured higher rates.
The contrasting preferences reflect the difficult economic choices facing households, with some seeking cheaper credit while others appear concerned about the broader effects of inflation and monetary conditions.
Read also:
- Nigeria’s Inflation Slows To 15.39% As Food Price Growth Eases
- CBN Cuts Interest Rate To 23%, Adjusts Monetary Policy Corridor
- NLC Demands New Minimum Wage as Inflation Erodes ₦70,000 Salary
Consumer Confidence May Recover
Despite the sharp deterioration in sentiment in September, the CBN survey indicated that households expect consumer confidence to improve gradually.
Respondents projected the Consumer Sentiments Index to rise to -8.7 points next month, improve further to -0.4 points in three months, and move into positive territory at 7.1 points in six months.
However, the immediate outlook remains cautious, with households continuing to express concerns about prices, interest rates and household finances.
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