BY FRONTLINE REPORTERS

Consumers’ confidence plunged sharply in September 2026 as households grappled with mounting price pressures and worsening concerns over the cost of living.

The Central Bank of Nigeria (CBN), in its latest Household Expectations Survey Report, said the overall Consumer Sentiments Index (CSI) fell to -18.7 points in September, from -9.9 points in August, reflecting growing pessimism among households.

The decline underscores increasing caution among consumers as rising prices continue to squeeze household finances.

According to the CBN, 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.

“Most respondents (61.1%) believed that faster price increases would weaken the economy,” the report stated, highlighting widespread concerns about the impact of inflation on economic activity and household welfare.

The mounting pressure on household finances also appears to have forced families to prioritise essential spending. The survey showed that food remained the top spending priority, followed by household goods, education, transportation and utilities.

As a result, demand for major purchases remained weak.

The average Buying Conditions Index (BCI) and Buying Intention Index (BII) stood at 24.4 points and 16.6 points, respectively, both significantly below the neutral 50-point threshold.

The CBN said households “also remained reluctant to make major purchases, particularly houses, motor vehicles, investments and consumer durables.”

Mixed views on interest rates

Households were also divided over the direction of monetary policy, reflecting the competing pressures of high borrowing costs and persistent inflation.

While 62.2% of respondents said they preferred lower lending rates to make borrowing more affordable, 45.1% favoured higher rates.

Despite the prevailing pessimism, the survey pointed to expectations of a gradual improvement in consumer confidence in the months ahead.

Households expect the Consumer Sentiments Index to improve to -8.7 points next month, -0.4 points in three months, and move into positive territory at 7.1 points in six months.

However, the near-term outlook remains cautious, with households still constrained by elevated prices, interest rates and pressure on their finances.

“Overall, households remained cautious in September 2026, reflecting persistent concerns about prices, interest rates and household finances,” the CBN concluded.