NIGERIA'S HOUSEHOLD SPENDING DOWN 2ND QUARTER

Nigeria's household spending dropped by 6% in the second quarter of this year, according to the National Bureau of statistics.

According to the computation of gross domestic product by expenditure released recently by the NBS, real household expenditure dropped for the second consecutive quarter to N9.52tr year on year after declining by 1.05% in the first quarter.

Normally household expenditure accounts for above 50% of GDP by expenditure as against by income.

However, nominally, household expenditure increased to N18.1tr within the second quarter but most of that was driven by galloping inflation which affected purchasing power negatively.

It was also affected by increased unemployment which, says the NBS, rose to 12.1% and 13.3% in first and second quarters of the year compared to corresponding 7.5% and 8.2% at the same time in 2015.

Government spending share of GDP dropped by 22.3% to N0.73 tr in first quarter and recovered by 5.06% in the second quarter to N0.83tr.

However it was gross fixed capital formation (GFCF) that remained fairly stable quarterly at above N2tr driven by building construction in the first quarter and by transport equipment and machinery additions in the second quarter as construction declined in both periods.

Looked at from the angle of source of the GDP by expenditure, it showed that operating surplus continued to be the main contributor accounting for N16.2tr out of N23.7tr GDP at current market prices in the second quarter.

Employees compensation accounted for N6.01tr within the same second quarter at current prices with fixed capital consumption chipping in N1.15tr and net taxes on products made up the rest N0.16 tr.

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