The Central Bank of Nigeria (CBN) has released its Consumer Expectations Survey (CES) for the fourth quarter of 2019 and it revealed that Nigerians will distance themselves from purchasing luxury items. This is could be attributed to the overall buying intention index in 2020 that is expected to stand at 36.5 index points.
The report stated that the conditions index for big-ticket items in the current quarter stood at 29.7 points.
What it means: This means that most consumers did not intend to buy big-ticket items during this period, as many Nigerians would not purchase luxury items like cars, houses, and other expensive items in 2020.
The negatives for the year: In CES, the apex bank warned that rising inflation and high prices would negatively impact the purchasing power of consumers.
Factors projected to drive increase in prices are food and other household needs, savings, purchase of appliances/consumer durables, education and purchase of houses and vehicles. Consumers will not be willing to borrow cash either for the purchase of these goods or any items as projection shows the borrowing rate will fall.
Surprisingly, consumers still expect a positive overall outlook for the next 12 months despite the inflation, price hike and projected unemployment in the country for 2020. To cap this up, the report shows the unemployment index remained positive at 21.0 points in Q4 2019. Therefore, the rise in unemployment is expected by consumers in the next 12 months
But consumers’ overall confidence outlook rose in Q4 2019, as consumers were optimistic in their outlook although consumer confidence is lower than the corresponding period of 2018.
“Consumers also had a positive outlook for the next quarter (current quarter) and the next 12 months.
“The majority of consumers believe that the next 12 months would not be an ideal time to purchase big-ticket items like motor vehicles and house.
“Most respondents expected the naira to remain unchanged; inflation rate to rise, and borrowing rate to fall in the next 12 months,” the report read in part.
[READ MORE: CBN retains Loan to Deposit Ratio at 65%)
Positives for the year: According to the report, consumers have positive outlooks due to improved family income and family financial situation. The expected increase in net household income, expectations to save a bit and/or have plenty over savings and an anticipated improvement in Nigeria’s economic conditions in the next 12 months birthed the favourable outlook.
What this means: Supermarket, real estate owners, and other consumer-driven goods will experience a drop in demand for their products and services. And with unemployment projected to rise in 2020, the impact is likely to be significant at most. The Nigeria Employers’ Consultative Association (NECA) had reported that the rate of unemployment in Nigeria may rise to 33.5% next year from the current rate pegged at 23.1%.
If demand drops in these sectors, it means the revenue contribution by these sectors to the Nigerian economy will drop, or growth will be slow for the businesses trading big-ticket or expensive items as earlier mentioned.
House of Reps to make Youths globally competitive
House of Representatives is determined to make the Youths globally competitive.
“Facts don’t lie, a government that has devoted N500bn to youth empowerment every year. There’s Trader Moni, N-Power, and several others, they are all there,” he added.
Gbajabiamila added that the President Muhammadu Buhari’s administration has done a lot about youth empowerment and is ready to do more.
COVID-19: Ogun orders full reopening of churches, mosques, hotels
Religious centres and other public places have been reopened following the success recorded in flattening the curve of COVID-19.
The Ogun State Government has ordered the full reopening of churches, mosques, businesses, hotels, and entertainment centres across the state.
This was disclosed by the State Governor, Dapo Abiodun, in a statement signed by his Chief Press Secretary, Kunle Somorin, via the state’s Twitter handle on Wednesday.
Abiodun stated that the religious centres and other public places had been reopened, following the success recorded in flattening the curve of COVID-19.
According to him, the government is aware that many people are just recovering from the economic hardship imposed by COVID-19, as their activities had been affected by the lockdown, while necessary measures had been put in place to combat the pandemic.
He stated, “In the process of rebuilding the economy, the State Government was irrevocably committed to the successful implementation of the “Building our Future Together” agenda, and would ensure everything possible for people to have increased prosperity that would place the State on a sound footing towards continued development.
“Government would improve on testing, just as it continues to monitor the development and not hesitate to do selective lockdown should there be any flagrant disobedience to the set COVID-19 protocols.”
COVID-19: Ogun orders full reopening of churches, mosque, hotels
Pleased with the drop of COVID-19 infections in Ogun State, @dabiodunMFR, has announced that all hotels, viewing centres, marquees, event centres, suites, guest houses, motels, and establishments providing…. pic.twitter.com/sMiUe3DUt5
— Ogun State Government – OGSG (@OGSG_Official) October 28, 2020
What you should know
Governor Abiodun had closed religious centres, businesses and schools in March, as part of moves to flatten the curve of the coronavirus.
He later announced the reopening of only worship centres and schools in August.
Abiodun pegged the number of worshippers for each service at 200, and insisted that services must not exceed one and a half hours.
CBN reveals framework for the N75 billion Youth Investment Fund
The Nigerian Youth Investment Fund will be funded through the NIRSAL MFB window of the CBN.
The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund.
This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria.
The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion.
The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
Objectives of the scheme:
Improve access to finance for youths and youth-owned enterprises for national development.
Generate much-needed employment opportunities to curb youth restiveness.
Boost the managerial capacity of the youths, and develop their potentials to become the future large corporate organizations.
Explore Data on the Nairametrics Research Website
The fund targets young people between the ages of 18 and 35 years.
Beneficiaries of NMFB, TCF and AgSMEIS loans, and other government loan schemes that remain unpaid are also not eligible to participate.
Individuals (unregistered businesses) shall be determined based on activity/nature of projects subject to the maximum of N250,000.
Registered businesses (Business name, Limited Liability, Cooperative, Commodity Association) shall be determined by activity/nature of projects subject to the maximum of N3.0 million (including working capital).
The tenor of the intervention is for a Maximum of 5 years, depending on the nature of the business and the assets acquired, of which interest rate of not more than 5% under the intervention shall be charged annually.
The Federal Ministry of Youth and Sports Development (FMYSD) will collaborate with relevant stakeholders to identify potential training for training/mentoring.
The youths that are duly screened (and undergo the mandatory training where applicable) shall be advised to login to the portal provided by the NMFB to apply for the facility.