The National Bureau of Statistics, NBS has disclosed that the household consumption expenditure of Nigerians, grew by 16.59% in the fourth quarter of 2020, indicating that Nigerians spent more to access basic daily needs such as food, toiletries, etc.
The increase in expenditure of households can be linked to increase in fuel price, increase in exchange rate causing a rise in the prices of consumables, amongst others.
Disclosing this in a report by NBS titled ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach Q1, Q2, Q3, & Q4 2020)’, it stated that:
“Household consumption expenditure, in Q3 and Q4 2020 grew by 6.10% and 16.59% in real terms, year on year.
“For 2020, the annual growth rate in real household consumption expenditure stood at 0.81% compared to -1.06% in 2019.
Similarly, “government consumption expenditure recorded growth rates at 99.18% and 12.13% in Q3 and Q4 2020 respectively, year on year, while annual growth rate stood at 61.58% in 2020 compared to 8.78% in 2019.”
However, “compensation of employees, during the third and fourth quarters of 2020 grew by -2.32%, and 6.36% respectively in real terms on year on year basis.
“For 2020, the growth rate stood at 0.96%compared to 8.99% in 2019.
Furthermore, “net exports recorded positive growth rates in the first two quarters of 2020 but turned negative in the third and fourth quarters of 2020.
“Net exports grew in real terms in Q3 and Q4 2020 by -52.39% and -72.61% respectively.
“As a result, on an annual basis, net exports recorded a growth rate of -29.55% in 2020 compared to 7.64% recorded in 2019.
“National disposable income also grew by 4.44% in the third quarter of 2020 and 3.13% in the fourth quarter of 2020.
“For annual figure in 2020, growth in national disposable income stood at 3.34% compared to 0.35% in 2019.”
However, despite the national disposable income growth and new of Nigeria leaving recession at the fourth quarter of 2020 recording a growth of 0.11%, the negative quarterly growth rates recorded in Q2 and Q3 2020 resulted in annual growth rate of -1.92% for 2020, compared to 2.27% recorded in 2019.
Comparing the third and fourth quarters of 2019, the growth performance in 2020 was slower by -5.90% points and -2.44% points respectively.
Recall that in the third quarter of 2020, Nigeria’s real GDP at basic prices grew by -3.62% on a year on year basis, marking a second consecutive quarter of negative real GDP growth after -6.10%. recorded in the second quarter (Q2).
In the fourth quarter of 2020 however, growth turned positive, recording 0.11% in Q4 year on year.