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Business News

Households in Nigeria spend N22.7 trillion on food

Nigerians spent N40.20 trillion as household consumption expenditure in 2019.

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

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.

READ ALSO: Recession: New GDP Data Shows Employee Compensation Fell To Lowest On Record

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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.

Nigeria's Household Consumption Expenditure - Source NBS.

Nigeria’s Household Consumption Expenditure – Source NBS.

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.

Household Consumption Expenditure in Percentages.

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.

READ MORE: Buhari administration on track to double Nigeria’s fiscal deficit

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.

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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.

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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%.

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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.

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

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. 

 

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Hospitality & Travel

KLM demands rapid antigen tests from Lagos passengers, as Netherland bans flights to UK, others

Passengers are to obtain rapid antigen tests at Murtala Mohammed International Airport before departure via Air France KLM Royal Dutch Airlines.

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KLM, Air France to resume flight operations in Nigeria from December 7

Air France KLM Royal Dutch Airlines has asked passengers departing from Lagos to obtain a rapid antigen test at Murtala Mohammed International Airport before departure from January 26, 2021.

This was disclosed by the Commercial Team Nigeria, Air France KLM Royal Dutch Airlines in its newsletter.

The airlines explained that customers, who are traveling to France as their final destination, now need to show a negative COVID-19 test result before boarding the aircraft and that the test result cannot be older than 72 hours and only PCR or LAMP tests are accepted.

Also, to fight against COVID-19, the Dutch government imposed flight ban to the United Kingdom, South Africa and South America.

It stated, “In addition, a second COVID-19 test will be required (rapid test – antigen) for all customers traveling to The Netherlands, including transfer customers.

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“No passengers will be allowed to board the aircraft without both the negative PCR test (72 hours before departure) and antigen test results (4 hours before departure) and will be rebooked accordingly. For now, all flights to/from U.K will be suspended until 27 January 2021.”

Steps to obtain rapid test

  • Antigen testing for passengers flying to The Netherlands including transfer customers need to be done as of 4
    hours prior to flight departure. In order to undergo the test, each passenger must complete a biodata form
  • The payment for the COVID-19 antigen test needs to be made via cash or card. The venue for sample collection is at the airport close to the check-in desks.
  • Rebook policy for mandatory PCR test: Customers that are not able to provide negative test results on time can take advantage of Air France and KLM PCR-test rebook policy.

What you should know

In December 2020, Nairametrics reported that KLM Royal Dutch Airlines and Air France resumed flight operations to Abuja and Lagos.

The airlines in a statement disclosed that international passengers can now fly Air France and KLM from Nigeria (Abuja and Lagos) to Paris and Amsterdam, with the possibility of further transfers to other European and North Atlantic destinations.

In a piece of travel advice, the airline asked customers to ensure they are well prepared for their trip and check the entry and travel requirements for their destination and transit countries in line with travel restrictions and governmental authorizations before making any travel plans. This is as the entry requirements may change with short notice.

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Tech News

Twitter acquires newsletter service, Revue

Twitter has acquired Revue, an email service that lets writers publish newsletters.

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Twitter Acquires Revue, A Newsletter Company

Twitter has acquired Revue, a Dutch startup that makes it free and easy for anyone to start and publish editorial newsletters. This is coming after a failed attempt to acquire Revue’s competition Substack.

Twitter has made massive moves over the past two months to acquire start-ups as it tries to expand beyond its core timeline product.

What they are saying

  • According to a blog post by Twitter VP of Publisher Products, Mike Park and Product Lead, Kayvon Beykpour, “Many established writers and publishers have built their brand on Twitter, amassing an audience that’s hungry for the next article or perspective they Tweet. Our goal is to make it easy for them to connect with their subscribers, while also helping readers better discover writers and their content. We’re imagining a lot of ways to do this, from allowing people to sign up for newsletters from their favorite follows on Twitter, to new settings for writers to host conversations with their subscribers. It will all work seamlessly within Twitter.

They added that Twitter will continue to operate Revue as a standalone product, with its team remaining “focused on improving the ways writers create their newsletters, build their audience and get paid for their work.”

  • “Revue will accelerate our work to help people stay informed about their interests while giving all types of writers a way to monetize their audience – whether it’s through the one they built at a publication, their website, on Twitter, or elsewhere,” the Twitter executives said.

They also said that bringing Revue to Twitter will supercharge this offering, helping writers grow their paid subscribers while also incentivizing them to produce engaging and relevant content that drives conversations on Twitter.

Twitter will make Revue’s Pro features free for all accounts and lower the paid newsletter fee to 5%, a competitive rate that lets writers keep more of the revenue generated from subscriptions.

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What you should know:

  • In December, Twitter bought Squad, a multi-participant video chat app, and this month it acquired the social broadcasting service, Breaker to create audio conversations for Twitter users. And now, they have added Revue to the collection of startups.
  • Revue was originally founded in 2015 in the Netherlands.
  • Twitter’s acquisition of Revue also places it in direct competition with Substack, a rival email newsletter service that has been growing in popularity recently.

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Coronavirus

Benue State Governor, Ortom tests positive for COVID-19

Benue State Governor has commenced treatment after testing positive for COVID-19.

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Governor Samuel Ortom of Benue State has tested positive for COVID-19.

This was disclosed by his Chief Press Secretary, Terver Akase, in a statement issued on Wednesday.

He stated, “This follows the test results of most of the Governor’s close aides who also returned positive in the last few weeks.

“Though the Governor has not shown any symptoms of the disease, he has already commenced treatment as prescribed by medical personnel.”

According to him, the governor has advised those who have come in contact with him in the last couple of days to go for a test.

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“The Governor says it is equally important that those who came in contact with other persons who have tested positive for the virus should go for a test to ascertain their COVID-19 status.

“Governor Ortom urged Benue people to continue to observe the protocols for the prevention of the virus such as wearing of face masks, use of sanitisers, regular hand washing and physical distancing,” he added.

What you should know

Some of the governor’s aides which included his personal physician, aide de camp, orderly, permanent secretaries among others had recently tested positive for the virus.

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