Analysts Predict Worsening Consumer Confidence in Nigeria

By Obinna Chima

Analysts have predicted that consumers in Nigeria would come under further strain in the second half of the year as a result of the weakness in the naira, petrol price as well as an anticipated hike in interest rate.

Consumer confidence is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending.


Nigeria’s Consumer Price Index (CPI), which measures inflation, rose by 0.9 per cent to an 11-year high of 16.5 per cent in June compared to 15.6 per cent in May, the National Bureau of Statistics (NBS) revealed last week. That was the fifth consecutive month that the headline index rose. The increase in the month under review was attributed to energy prices, imported items and related products, which continued to be persistent drivers of the core sub-index.

To this end, Johannesburg-based sub-Saharan Africa Economist at Renaissance Capital (RenCap), Yvonne Mhango, noted in a report titled: “Nigeria’s troubled consumer Petrol price, naira...<<<read more by clicking this link>>> http://www.forexpot.com/market-news/worsening-consumer-confidence/