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Research Analysis

Official: Nigeria’s consumer spending tops N11.3 trillion in the 3rd quarter of 2016

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Nigerians Celebrating, Households in Nigeria spend N22.7 trillion on food

Data from the National Bureau of Statistics show Nigerians spent a N11.3 trillion in the third quarter of 2016 as household consumption expenditure. This was a whopping N1.79 trillion higher than what was spent in the second quarter of the year.

The data is obtained from the Bureau’s third quarter GDP by expenditure report which measures Nigeria’s gross domestic product from the point of view of expenditure. The more renowned way of estimating a country’s GDP is via its production.

However, the expenditure approach which still results in the same estimates shows the impact of Government, Investments, Household and Exports has on a country’s GDP. It is also our favourite way of looking at GDP at Nairametrics.

 

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GDP by expenditure 2015 – 2016 (tip click on the labels to toggle charts)

Household Expenditure

Household consumption refers to the amount spent personally by all Nigerians to acquire goods and services within the country. According to the data, Nigerians spent N11.3 trillion in the third quarter of 2016 compared to N11.69 trillion spent in the corresponding quarter of 2015. Household expenditure for the third quarter was also 64% of GDP compared to 66% in the corresponding quarter. Sub-Saharan Africa as a household consumption expenditure to GDP of about 69%.

As the chart above depicts, the drop-in household consumption in the first and second quarter of 2016 may have contributed significantly to Nigeria’s fall into recession.

What this means? This suggest that Nigeria’s GDP growth rate is driven largely by Household Consumption. As the chart above depicts, household consumption expenditure has always been a larger component of spending in the economy.

Government Expenditure

According to the data Government Expenditure was N1 trillion in the third quarter of the year compared to N938.3 billion in the corresponding period last year. This perhaps reflects challenges with funding the budget amidst a dip in government revenues since 2014. Government expenditure was therefore just 6% of total spending though up from 5% last year.

What it means – This is a relatively low figure considering that the government is thought to drive the economy via spending. However, it also mirrors the fact that Nigeria’s budget is not even up to 10% of our GDP confirming that the private sector drives economic growth in the country

Investments Expenditure

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Nigeria’s investment expenditure was N2.5 trillion in the third quarter of 2016 compared to N2.3 trillion in the corresponding quarter in 2015. This means a total of N2.5 trillion was committed towards investment in the country. Investments into Nigeria also makes up about 14% of total GDP compared to 16% in the corresponding quarter. On the average investments contribute about 15% of GDP.

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What it means – Despite the harsh economic environment, Nigerians kept to the same level of investments.

Net Exports

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This is the difference between Nigeria’s export and import. A positive net export means that Nigerians exported more than they imported. Nigeria recorded a net export of N2.8 trillion in the third quarter of 2016 compared to about N3 trillion in the corresponding period in 2015. The data also shows total exports for the period was N4.5 trillion compared to imports of about N1.7 trillion. Nigeria’s Net exports was about 16% in the quarter under review down from 17% in the same period in 2015.

 

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Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

1 Comment

1 Comment

  1. Anonymous

    June 27, 2017 at 1:51 pm

    ‘the private sector drives economic growth in the country.’ As usual.

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Research Analysis

Chart of the day: It’s a V Shaped Recovery

A V-Shaped recovery means the Nigeria economy recovered faster than was expected

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The chart above is V-Shaped!

Nigeria’s Bureau of Statistics revealed on Tuesday that Nigeria reported a real GDP Growth rate of 0.11% for the fourth quarter of 2020, the first time following three consecutive quarters of negative GDP growth rate.

Why this matters

  • A V-shaped recovery means the economy got out of a recession faster than expected.
  • Several analysts had various predictions on what Nigeria’s economic recovery chart might look like. The predictions were between U, V, L, or W, shaped.
  • This was also the headline of the Nairametrics Q3 2020 Economic Outlook Webinar where most of our panelists settled for a U-shaped recovery.
  • Most analysts had opined that Nigeria’s GDP Growth rate will contract again in the 4th quarter of 2020 before eeking our growth in the first quarter of 2021.
  • However, the latest GDP number indicates a GDP growth rate in the 4th quarter thus a V-shaped recovery.

At 0.11%, this is the slowest GDP Growth rate Nigeria has recorded since the GDP was rebased in 2011. In the second quarter of 2017 when Nigeria also exited a recession, the GDP Growth rate was 0.72% and was considered relatively tepid at the time.

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Exclusives

Prices of local rice, onions, tomatoes, others crash as foreign rice continues to ease off

This report contains information on items that witnessed price increase, price decrease, as well as information on special markets and insights.

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prices of food items, SBM Jollof Index, Smuggling of imported rice hits Lagos major markets, as residence brace for shutdown

It appears Nigerians are in for good times in the new year, as the price of bags of local and foreign rice, onions, pepper, tomatoes, amongst others recorded a significant drop in price.

This is according to the latest market survey, carried out by Nairalytics Research – the research arm of Nairametrics.

The survey revealed that the price of a 50kg bag of locally produced rice dipped by 6.4% from an average of N25,375 recorded in December to an average of N23,750 while a bag of foreign rice of the same size now sells for an average of N24,500 as against an initial average of N26,125.

READ: Quality of local rice improves as food prices drop across major markets 

Also, the price of a bag of dry onions dropped by 77.5% to sell for an average of N21,500 compared to an initial average of N95,500 while the price of new onions crashed by 74.6% to sell for an average of 16,500.

This report contains information on items that witnessed price increase, price decrease, as well as information on special markets and insights.

READ: Inflation rate jumps to 12.13%, highest in 21 months

Items that witnessed price increase

  • A big bag of melon that was sold for an average of N43,500 in December now sells for an average of N45,000. This represents an increase of 3.45% in three weeks.
  • A nylon of crayfish now sells for an average of N14,250, representing an increase of 9.6% compared to an initial average of N13,000.
  • The price of a big tuber of yam spiked by 31.2% to sell for an average of N1,000 as against an initial average of N763.
  • Also, a medium-sized tuber of yam now sells for an average of N588, indicating an increase of 11.9% compared to an initial average of N525.
  • A big basket of sweet potatoes that was sold for an initial average of N5,500, witnessed an increase of 9.1% to sell for an average of N6,000.
  • The price of a small-sized basket increased by 3.6% to sell for an average of N727 from an initial average of N700.
  • Also, a big basket of Irish potatoes now sells for an average of 25,000 as against an initial average of N20,000. This represents an increase of 25% in three weeks.

READ: FG warns local rice dealers to desist from price hike

Items that witnessed price decrease

  • A big basket of round shaped tomatoes that was sold for an average of N15,000 in December, now sells for an average of N6,500. This represents a price decrease of 56.7% in three weeks.
  • Also, the price of a medium-sized basket of round shaped tomatoes reduced by 64.7% to sell for an average of N3,000 as against an initial average of N8,500.
  • A big bag of pepper now sells for an average of N7,750. This is 61.3% lower than an average of N20,000 recorded in December while a medium-sized bag currently sells for an average of N3,750 as opposed to an initial average of N10,000.
  • A 50kg bag of brown beans currently sells for an average of N30,000, representing a 27.7% decline in price compared to an initial average of N41,500.
  • The price of a 10kg bag of Mama Gold rice dipped by 8.3% to sell for an average of N4,400 compared to an initial average of N4,800.
  • Also, a 50kg bag of Royal Stallion rice that was initially sold for an average of N26,125 now sells for an average of N24,500 while Mama Gold rice of the same size sells for an average of N24,875 as against an initial average of 26,125.
  • The price of a carton of full chicken recorded a marginal decrease of 0.29% to sell for an average of N14,125 compared to an initial average of N14,167.
  • A big bag of Bush mango seeds (Ogbono) that was sold for an average of N115,000 during Christmas festivity, now sells for an average of N105,000. This represents a price decrease of 8.7%.

READ: Why onion has become the “new gold” in Nigeria

Items that maintained initial prices

  • A crate of eggs continues to sell for an average of N1,200, the same as recorded in December.
  • A big bag of yellow maize is still sold for an average of N20,167, while a bag of white maize costs an average of N20,000.
  • A bag of yellow maize sells for an average of N23,333, the same as recorded in December, while white maize of the same size still sells for an average of N23,167.
  • A 50kg bag of Honey well and Mama Gold flour sells for N13,950 and N13,850 respectively, while a bag of Dangote flour sells for an average of N13,750.
  • Horse fish (Kote) and Titus fish still sell for an average of N613 and 638 respectively across markets in Lagos.
  • A 50kg bag of garri (Ijebu) still sells for an average of N14,375, while white and yellow garri sell for an average of N10,750 and N11,125 respectively.
  • Amongst the list of food items that maintained their initial prices include: noodles, beverages, cocoa drinks, sugar, water, and juice.
  • A 12.5kg cylinder of cooking gas is filled for an average of N3,975, while a 5kg cylinder is filled for an average of N1,750.

READ: Betting on Bitcoin is better than investing in PayPal, Google, Facebook, Amazon

Special markets/items

  • Several customers were sighted at Mile-12 market negotiating and transacting with traders at different units of the market as the prices of most food items recorded a significant decline in price compared to the just-concluded year.
  • In an interview with a tomato seller at Mushin market, Mr. Bala, explained that the decline in the price of tomatoes is due to seasonal fluctuations and increased supply of the food item.
  • He stated that there has been a huge amount of harvest during this period, which has caused an increased supply of tomatoes coming from the north, and as a result driving the price of the commodity downwards. He however mentioned that oval-shaped tomatoes are not currently in the market, only round-shaped tomatoes were harvested and supplied to the market.
  • The price of foreign rice has continued to witness a significant decrease in the past four weeks, largely due to the reopening of some land borders across the country. Also, the price of locally produced rice trickled down last week due to the new influx of foreign rice.
  • According to our correspondent at Daleko market, Mrs. Oladayo, she explained that foreign-made rice is of two types for each of the brands, long and short. A 50kg of the long grain of rice sells for an average of N24,000 in the market, while the bag of short grains sells for an average of N24,000.
  • Although, a 50kg bag of Big Bull rice sells for an of N24,000 some Nigerian made rice are now selling for as low as N18,000 and N17,000. She however warned that some of these brands are quite stony. For example, Zainab rice sells for an average of N17,000 at Daleko market.

READ: No giving up, Bitcoin gains $5,000

Market insights

  • In an interactive session with an Onion seller at Mile-12 market, it was revealed that the reason for the significant nosedive in the price of onions was due to bountiful harvest towards the end of December.
  • According to Muhammed, he said this is a period for onion harvest and it is only normal for the price to decline, although it seemed like a significant decline due to the irregular hike witnessed in the price of onions last year as a result of some string of events, such as insecurity, lack of harvest, etc.
  • He further mentioned that the reduction in the price of onions is a very positive development for the year, considering the hardship experienced by many Nigerians during the past year.
  • “We are happy that the price of onions and other food items have dropped in recent times and we hope it continues this way, because the lesser the price, the more customers are likely to buy,” He added.
  • In a bid to understand the cause of the increase in the price of potatoes, Mr. Audu explained to Nairalytics that the price of potatoes increased due to the effect of seasonal fluctuations.
ItemsBrandUnitMUSHIN (7/1/2021)DALEKO (7/1/2021)OYINGBO (7/1/2021)MILE 12 (7/1/2021)Average MUSHIN (17/12/2020)DALEKO (17/12/2020)OYINGBO (17/12/2020)MILE 12 (17/12/2020)Average
Bag of RiceMama Gold10kg4400420045004500440046004800480050004800
Bag of RiceRoyal Stallion50Kg25000240002500024000245002600025500260002700026125
Bag of RiceRice Master10kg NA430043005000 NA45004750
Bag of RiceMama Gold50kg25000240002450026000248752600025500260002700026125
Bag of RiceCaprice50kg25000220002400025000240002600025500260002700026125
Bag of RiceMama's Pride50kg23000240002400024000237502550025000250002600025375
Bag of BeansOloyin50kg20000210002000020333.3333333332000021000210002000020500
Bag of BeansWhite50kg40000450004300042666.6666666674000043000450004300042750
Bag of BeansBrown50kg32000300003000028000300004300038000420004300041500
Tuber of YamAbuja1 Big Size Tuber1000900110010001000800750700800762.5
Tuber of YamAbuja1 Medium Size Tuber550600550650587.5550500550500525
Carton of NoodlesIndomie305g (Belle full)32003250330033003262.532003250330033003262.5
Carton of NoodlesIndomie200g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2200220021002300220022002200210023002200
Carton of NoodlesMinimie70g19001750170018001787.519001750170018001787.5
Carton of NoodlesGolden Penny70g1700150016001600160017001500160016001600
Bag of GarriIjebu80kg14500140001450014500143751450014000145001450014375
Bag of GarriWhite50kg10500110001100010500107501050011000110001050010750
Bag of GarriYellow50kg11000110001150011000111251100011000115001100011125
Basket of PotatoSweetBig Basket6000600055005500
Basket of PotatoSweetSmall Basket700750725700700700
Basket of PotatosweetSmallest Basket400300350400250325
Basket of PotatoIrishBiggest Basket250002500025000200002000020000
Basket of PotatoIrishMedium Basket2600260025002500
Basket of PotatoIrishSmall Basket170016001650170015001600
Packet of PastaGolden Penny500g4400440043004200432544004400430042004325
Packet of PastaDangote500g4200430043004300427542004300430043004275
Packet of PastaPower (1 pc)500g250230250230240250230250230240
Packet of PastaBonita (1 pc)500g220230230220225220230230220225
Gallon of Palm OilLocal5 Litres2700260028002600267527002600280026002675
Gallon of Palm OilLocal25 Litres13000130001300013000130001300013000130001300013000
Gallon of Vegetable OilLocal5 Litres3400340035003400342534003400350034003425
Gallon of Vegetable OilLocal25 Litres16000170001700016500166251600017000170001650016625
Gallon of Vegetable OilKings5 Litres3200300030002800300032003000300028003000
Gallon of Vegetable OilWesson5 Litres4500390039004300415045003900390043004150
Gallon of Vegetable OilMamador3.8 Litres25002450250028002562.525002450250028002562.5
Gallon of Vegetable OilPower3 Litres1900180018002200192519001800180022001925
Bunch of PlaintainPlantain1 Big Bunch500600500600550500600500600550
Bag of FlourDangote50kg13600136001380014000137501360013600138001400013750
Bag of FlourHoney well50Kg14000136001400014200139501400013600140001420013950
Bag of FlourMama Gold50kg13800136001400014000138501380013600140001400013850
MilkPeak Powdered (Tin)400g12001300120012501237.512001300120012501237.5
Milkpeak Powdered(Tin)900g2800275027002750275028002750270027502750
MilkPeak milk (Refill)500g1200110012001200117512001100120012001175
MilkDano Powdered (Tin)500g1200120011001200117512001200110012001175
MilkDano Powdered(Tin)900g2600250024002500250026002500240025002500
MilkDano (Refill)500g100095010001000987.5100095010001000987.5
MilkThreeCrown (Refill)380g800750800750775800750800750775
MilkLoya Powdered (Tin)400g10001100110010501062.510001100110010501062.5
MilkLoya (Refill)400g900800850800837.5900800850800837.5
MilkCoast (Refill)500g750750750750750750750750750750
Cocoa BeveragesMilo (Tin)500g1500145015001450147515001450150014501475
Cocoa BeveragesMilo (Tin)1kg25002450240025002462.525002450240025002462.5
Cocoa BeveragesMilo Refill500g1100110010001100107511001100100011001075
Cocoa BeveragesBournvita Refill500g1300130012001300127513001300120013001275
Cocoa BeveragesBournvita (Plastic)900g2200220023002200222522002200230022002225
Cocoa BeveragesOvaltine Refill500g10009001000950962.510009001000950962.5
Cocoa BeveragesOvaltine(Plastic)500g15001500145014001462.515001500145014001462.5
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g300290300300297.5300290300300297.5
TeaTop tea52g300300300300300300300300300300
SugarSt' Louis Sugar(Cube) 500g600600600550587.5600600600550587.5
SugarGolden Penny Sugar (cube)500g400350400400387.5400350400400387.5
BreadVal-U1 loaf450450450450450450450450450450
BreadButterfield1 loaf450450400450437.5450450400450437.5
EggN/ACrate12001200125012001212.512001200125012001212.5
Bottled Water (Refill)CwayRefill600650600600612.5600650600600612.5
Juice5 Alive1 litre550550550600562.5550550550600562.5
JuiceChivita1 litre550550600550562.5550550600550562.5
GasRefilling12.5kg4000400039004000397540004000390040003975
GasRefilling5kg1700180018001700175017001800180017001750
TomatoesBig Basketround shaped650065001500015000
TomatoesMedium Basketround shaped3000300085008500
TomatoesSmall Basketround shaped2500250055005500
TomatoesBig BasketOval ShapedNA1000010000
TomatoesSmall BasketOval ShapedNA60006000
FishKote (Horse Mackerel)1 kg650600600600612.5650600600600612.5
FishTitus (Mackerel)1 kg600650650650637.5600650650650637.5
PepperBig bag8000750077502000020000
PepperMedium bag4000350037501000010000
MaizeYellow25000220002300023333.33333333325000220002300023333.333333333
MaizeWhite25000225002200023166.66666666725000225002200023166.666666667
MelonBig bag450004500045000435004350043500
OnionsBig bagDry Onions260001700021500940009700095500
OnionsBig bagNew Onions200001300016500650006500065000
Bush mango seed(Ogbono)1 big bag105000105000115000115000
Frozen foodFull chickenCarton140001450014000140001412514500140001400014166.666666667
Frozen foodChicken lapCarton135001400014000140001387514000140001400014000
Frozen foodTurkeyCarton1800018500190001850019000190001900019000
CrayfishNylon140001450014250125001350013000

About Nairametrics Food Price Survey

Nairametrics Food Price Watch is a bi-weekly Household Market Survey that covers the prices of major food items in Nigeria, with emphasis on five major markets in Lagos – Mushin market, Daleko market, Oyingbo market, Idi-Oro market, and Mile 12 market.

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