Since the economic meltdown in 2016, consumer spending has remained at suboptimal levels amid declining disposable income and high unemployment rate. A report by the National Bureau of Statistics revealed that 56.65% of total household expenditure was spent on food and 43.35% on non-food items in 2019. This reflects the current consumption pattern and highlights the declining capacity of the people to meet discretionary items and savings. Given this significant proportion of food to total household expenditure, Nigeria remains susceptible to food price spikes and COVID-19 induced supply chain disruptions.
In this commentary, we assessed household consumption as a key component of economic growth, the current consumption pattern and food supply, plus the CBN’s initiatives at boosting the agricultural sector amid current realities.
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