'Seun Ibukun-Oni, Abuja
• Food spending drops from 51.8% to 40.0% in household consumption priorities.
• Health expenditures doubled, rising from 3.0% to 6.1%
• NBS reveals shifts in consumption patterns in rebased CPI
DAILY COURIER – The National Bureau of Statistics (NBS) has unveiled the rebased Consumer Price Index (CPI), shedding light on significant shifts in Nigerian households' consumption patterns. The updated CPI, which adopts 2024 as the base year, reveals a notable decline in spending on food and non-alcoholic beverages, alongside a sharp rise in expenditures on transport, dining out, and healthcare. These changes reflect evolving lifestyles and economic realities in Africa’s most populous nation.
Introduction: Capturing Changing Consumption Trends
The CPI, a key measure of inflation, tracks changes in the prices of goods and services consumed by households. Over time, consumption patterns evolve due to factors such as urbanization, income growth, and changing preferences. To ensure the CPI remains relevant, the NBS has rebased the index, updating the base year from 2009 to 2024 and revising the weights of various consumption categories.
The rebased CPI captures these shifts, providing a clearer picture of how Nigerians are allocating their incomes. The findings reveal a move away from traditional spending on food and non-alcoholic beverages towards transport, healthcare, and dining out, underscoring the dynamic nature of the Nigerian economy.
Methodology: A Modern Approach to Data Collection
To compile the rebased CPI, the NBS utilized advanced data collection techniques, including household expenditure surveys and administrative data from institutions like the Central Bank of Nigeria (CBN) and the National Insurance Commission (NAICOM). The 2023 Nigeria Living Standards Survey (NLSS) and the 2024 Survey of Rare Items provided critical insights into current consumption patterns.
Fieldwork was conducted using Computer-Assisted Personal Interviewing (CAPI) devices, enabling real-time data transmission and verification. This modern approach ensured the accuracy and reliability of the data, which forms the foundation of the rebased CPI.
Shifts in Consumption Patterns: Key Findings
The rebased CPI reveals significant changes in how Nigerian households spend their incomes. One of the most striking findings is the decline in spending on food and non-alcoholic beverages, which now accounts for 40.0% of the CPI basket, down from 51.8% in the previous index. This shift suggests that Nigerians are allocating a smaller portion of their budgets to basic food items, possibly due to rising incomes, urbanization, and changing dietary preferences.
In contrast, expenditures on transport have surged, with its weight increasing from 6.5% to 10.7%. This rise reflects the growing importance of mobility in Nigerians' daily lives, driven by factors such as urbanization, increased commuting, and the expansion of logistics and delivery services.
Another notable trend is the sharp increase in spending on restaurants and accommodation services, which now accounts for 12.9% of the CPI basket, up from just 1.2% in the previous index. This jump highlights the growing popularity of dining out and hospitality services, as Nigerians increasingly seek convenience and leisure experiences.
Healthcare expenditures have also seen a significant rise, doubling from 3.0% to 6.1%. This increase underscores the growing importance of healthcare services in Nigerians' lives, likely driven by rising awareness of health issues and increased access to medical facilities.
Implications for Policy and Economic Planning
The shifts in consumption patterns captured by the rebased CPI have important implications for policymakers. The decline in food spending, coupled with rising expenditures on transport, healthcare, and dining out, reflects broader economic and social trends that must be addressed in policy formulation.
For instance, the surge in transport costs highlights the need for investments in infrastructure and public transportation to ease the burden on households. Similarly, the rise in healthcare spending underscores the importance of expanding access to affordable healthcare services.
The rebased CPI also provides a more accurate tool for measuring inflation and guiding monetary policy. By reflecting current consumption patterns, the index enables policymakers to better understand inflationary pressures and implement targeted interventions to stabilize prices and promote economic growth.
Conclusion: A New Benchmark for Economic Analysis
The rebased CPI marks a significant milestone in Nigeria’s statistical landscape, capturing the evolving consumption patterns of Nigerian households. The decline in food spending and the rise in expenditures on transport, healthcare, and dining out reflect the dynamic nature of the Nigerian economy and the changing priorities of its people.
As Nigeria continues to navigate a rapidly changing economic landscape, the rebased CPI will serve as a critical tool for understanding and addressing the challenges of inflation and price stability. By providing a more accurate and comprehensive measure of consumption patterns, the index supports efforts to improve living standards and promote sustainable economic growth.
