Nigerians incurred N40.20 trillion as household consumption expenditure in 2019. This is according to the Consumption Expenditure Pattern report published by the National Bureau of Statistics. In 2009, the last time the report was published, Nigerians spent N21.62 trillion on consumption expenditure.
The data covered the period from October 2018 to September 2019.
The 2019 expenditure pattern report, which measures Nigeria’s spending pattern in both food and non-food items, revealed that of the total, 56.65% of the household expenditure in 2019 was spent on food, with the balance of about 43.35 spent on non-food items.
According to the definition, Household consumption refers to the amount spent personally by all Nigerians to acquire goods and services within the country. The data is based on household consumption only and excludes consumptions from the private sector, government, and exports.
Food consumed outside the home, followed by transportation costs and starchy roots, tubers, and plantains were responsible for the largest proportion of household expenditure, representing a combined 24.16% for total household expenditure in 2019.
How Nigerians Spend
In no particular surprise, 56.65% of Nigeria’s consumption expenditure was on food items. Transportation was second highest on the spending list with N2.5 trillion while health and education come next with N2.46 trillion and N2.42 trillion respectively. Also interesting to note that Nigerians spend more on telecoms than on rent, fuel/electricity.
The spending pattern captured in this survey is indicative of Nigeria’s poverty rate which is over 80 million according to prior data published by the NBS.
Spending on Food
Nigerians spent a whopping N22.7 trillion on food between the period recorded for the survey. In clear evidence of Nigerians culinary preferences, skew more towards carbohydrates with Starchy Roots, Tubers, and Plantain dominating with about N2.5 trillion. Rice a major staple food item that the government has been looking to ban cost Nigerians about N1.9 trillion while vegetables cost N1.7 trillion.
Surprisingly, alcoholic drinks were bottom on the ladder for food and beverage items with just N150 billion. We understand this does not capture alcoholic drank in bars, pubs, hotels, functions, etc. It only covers was is consumed in the household.
Urban and Rural Nigeria
The data also cut across various states in the country as well as urban and rural Nigeria. For example, in Rural Nigeria, after food which takes on 61.3% of consumption, healthcare takes on another 7.3%. Transport and education is next with 5.59% and 4.7% respectively.
However, in Urban Nigeria, Food represents 51.5% of expenditure followed by Education and Transport with 7.5% and 7.38% respectively. Telecommunication, rent, fuel, and electricity all fall between 6% and 7%.
In terms of State, 12.6% of National Spending occurs in Lagos State while Oyo and Delta are next with 5.83% and 5.38% respectively.
In Nigeria’s economic capital, Lagos State, Lagosians spent about N2.4 trillion on food items representing 48% of total consumption expenditure while 52% was on non-food items, the only state with that record. Next was Transport, Rent and Telecoms with 10.5%, 8%, and 7.5% respectively.
What this means: This data is especially critical at understanding the consumption patterns of Nigerians. On the back of this data, it is obvious that Nigerians incur over 56% of their consumption expenditure on food items. Food and beverage businesses are one of the easiest to start and operate in Nigeria and there is a hungry population primed to consume it.
This data now show Nigerian only apportion 23% of their consumption expenditure to critical sectors such as telecoms, healthcare, electricity, entertainment. According to the report, poorer countries like Nigeria spend more on food while developed economies spend less.
For a developing country like Nigeria, the consumption pattern is skewed towards food i.e. food is higher than the non-food items. In most developed countries, it is the opposite, where the consumption pattern is skewed towards non-food items. The more developed a society becomes, the less it spends on food and the more it spends on nonfood items. Lagos is a clear indication of a state with an emerging economy. Lagos state’s expenditure on non-food items was more than its expenditure on food.
#EndSARS: NCAA denies alleged shut down of airspace, as Turkish Airlines takes off tonight
FAAN has reportedly shut down the air space of the nation due to alleged unrest in the country.
The Nigerian Civil Aviation Authority (NCAA) has denied the alledged shut of the nation’s airspace due to the unrest, arising from the hijacked #EndSARS protests in Lagos, Abuja, and some other states in the country.
Though, the authority has not issued an official statement on the development, a source in the apex regulatory body told Nairametrics that the airspace remains open in Lagos and Abuja.
He said, “It is not true that the airspace is shut as rumoured on some social media platforms. Turkish Airline is attending to its passengers at the moment and the flight is tonight. So, where is the airspace being shut coming from.
“Delta Airline decided to divert the Lagos bound flight to Dakar, Senegal before going back to New York not because our airspace is shut but its Lagos office informed the Pilot that there is curfew in Lagos. Expectedly, American airlines are so sensitive to issues like that.”
Back story: A Twitter user, Osasu Onayiuwana, whose friend is one of Delta Air passengers en-route Lagos from Atlanta, USA, had alleged that Delta Airline returned ti New York because Nigerian air space was shut.
He tweeted, “A friend returning to Lagos, from Atlanta on @Delta has been informed, during their Dakar, Senegal stopover, that @Nigeria’s airspace has been closed. They are now flying back to Atlanta!
“Actually, his plane is currently on the way to New York, from Dakar. Before this, some passengers asked @Delta to allow them to find their way to Lagos from Dakar. Understandably, the airline refused.”
— Osasu Obayiuwana (@osasuo) October 20, 2020
FRC to implement new IFRS 17
The FRC is set to implement International Financial Reporting Standard 17 (IFRS) on or before January 2023.
The Financial Reporting Council of Nigeria is expected to implement International Financial Reporting
Standard 17 (IFRS) on or before January 2023. This follows the amendment of the standard on June 25, 2020.
This was disclosed by the Head, Directorate of Accounting Standards Public Sector, FRC, Dr. Iheanyi Anyahara, during a Stakeholders interactive forum with FRC and International Accounting Standards Board (IASB) webinar recently.
Nigeria adopted the IFRS as part of measures to improve transparency, reporting practices and full disclosures.
Having adopted the IFRS by the Council, Anyahara explained that all amendments to existing standards alongside the new standards issued by the International Accounting Standards Board (IASB) must be implemented by all reporting entities in Nigeria.
According to him, the Council is aware that implementing IFRS 17 commands a radical departure from current accounting standards and produces complex operational challenges.
He said, “That is why we are organizing this programme and many more in collaboration with IASB to guide the users of the standards both in application and implementation.
“The Council will be organizing more events in financial reporting, auditing and corporate governance in order to sensitize the general public and lessen the knowledge gap in IFRS standards in Nigeria in collaboration with relevant agencies and organisations.”
Last July, Nairametrics reported when FRC released guidelines for reporting in compliance with the Nigerian Code of Corporate Governance. (NCCG 2018).
In a statement posted on its website, the Council explained that it had been engaging with all regulators of sectors for the purpose of developing sectoral guidelines of corporate governance on specific requirements relevant to each sector, which are not covered under NCCG 2018.
Geely Auto to invest 54 million dollars in the development of healthy cars
Geely’s leading track record will be taken to a new level with the development of an all-round “healthier car.”
As Exclusive Partner of Geely Automotive in Nigeria, Mikano brings us great news of Geely Automotive innovative steps towards development of “healthy, intelligent vehicles” by earmarking 54 million Dollars of funding to it; as a furthering of the fight against Coronavirus.
The move not only adds a new dimension to Geely’s understanding of “passenger safety,” it also represents a new development direction for automobiles.
The development of a “healthier car” differs from specialized medical vehicles in that Geely’s products are made for ordinary consumers. Cars with comprehensive virus protection not only require the capability to isolate harmful substances in the air, it also needs to quickly and effectively purify cabin air for occupants.
Geely Auto’s global R&D and design networks based in Europe, USA and China will jointly move to develop and research new environmentally sustainable materials with anti-bacterial and anti-viral properties which can be used within air-conditioner systems and on frequently touched surfaces such as buttons and handles.
Geely Auto will make full use of its global R&D system and resources as well as cooperate with professional medical and scientific research institutions to set up special project teams to work on the new research.
An Conghui, President of Geely Holding Group and President and CEO of Geely Auto Group said “Epidemic prevention is a job that requires the long-term effort of wider society. As the most common mode of transportation, consumers spend a considerable amount time in their cars, akin to a “second home” Only by making healthier products can we meet consumer demand for better quality of life. Based on the automotive industry’s development direction built around electrified, connectivity, intelligence, and shared mobility, auto companies should commit to developing products that help protect the health of drivers and passengers. This will become one of Geely Auto key long-term development objectives.”
Earlier on January 28, Geely Holding Group joined hands with the Li Shufu Foundation to set up a special 30 million dollars fund in support of the new coronavirus prevention and control, with a focus on the mass purchasing of much needed medical supplies for China in the short term.
Geely’s leading track record will be taken to a new level with the development of an all-round “healthier car.” Geely’s move sets a new precedent in the development of safety technologies that goes beyond developing leading crash test results and moves into new dimensions of passenger safety.
Visit www.geely.ng to find out more about Geely Nigeria