Nigerians spent N40.2 trillion on Household Expenditure in 2019 – NBS

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Total  household  expenditure  on  food  and  non-food  for  2019 at  the  national  level was N40.2 trillion as against N21.6 trillion in 2009/10 when the last survey was conducted. The National Bureau of Statistics revealed Friday in the Consumption Expenditure Pattern in Nigeria report

Of this total, 56.65% of total household expenditure in 2019 was spent on food with the balance of about 43.35% spent on non- food items. This is against 60.2% spent on food and 39.8 % spent on non-food in 2009/10.

Expenditure on food being higher than expenditure non-food items is an indication of the under-development of Nigeria. In most developed countries, it is the opposite, where the consumption pattern is skewed towards non-food items. The more developed a society becomes, the less it spends on food and the more it spends on nonfood items.

According to the Statistics Agency, Food consumed outside the home, followed by transportation costs and  starchy  roots,  tubers  and  plantains  were  responsible  for  the  largest  proportion  of  household expenditure  representing  a  combined  24.16  percent  of  total  household  expenditure  in  2019.

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The report further stated that, various foods consumed outside the home, starchy roots, tubers and plantains, rice, vegetables, fish and sea food, grains and flours in that order were the  top  food  items  households spent  on in  2019 accounting for  a combined 59.19% of food expenditure  and  33.53%  of  total  household  expenditure  on  food  and  24.8%  of  total  household expenditure.

Household  expenditure  on  non-food  items  on  the  other  hand  were  directed  as aforementioned  mostly  at  transport,  health,  education  and  services  (which  includes  information technology and communication equipment as well as things like insurance, financial services and so on), rent  and  fuel  and  light,  accounting  for  a  combined  79.40%  of  non-food  expenditure.

Those in Urban area spent N19.1trillion while those in the rural area spent N21.09 trillion on consumption in 2019. This figures is an increment from N8.4 trillion and N9.36 trillion for urban and rural spending respectively in 2009/10

Against  this  backdrop  total  expenditure  on  food  in  urban  areas  stood  at  N9.8 trillion in  2019 while in rural areas it was N12.9 trillion rising from N3.65 trillion and N9.36 trillion in 2009/2010 respectively.

In the 2019 report by NBS, spending on food consumed outside of home ranked highest with  4,597,611,647,231 (11.43% of total expenditure) followed by spending on starchy root, tubers and plantain with N2,526,248,133,445 (6.28% of total expenditure) and rice and vegetables with N1,978,469,588,752 (4.92% of total expenditure).

Transportation on the other hand, occupy highest place in the non-food expenditure with 2,588,901,034,916 (6.44% of total expenditure) followed by health with 2,460,266,138,597 (6.12% of total expenditure) and education with 2,428,993,052,871 (6.04% of total expenditure).

Further  disaggregation  by  the  6  geo-political  zones  reveals  that  the  South-West  region  recorded  the highest  overall  household  expenditure  as  well  as  the  highest  expenditure  on  food  and  in  non  food categories, while the  North East (excluding Borno)  recorded  the  lowest.  As can be seen in  the  table below, the South-West at about 29.95% of total expenditure, South South at 20.94% and North West at about 17.02% recorded  the  highest expenditure  in  2019. These three  regions  were therefore  responsible  for over  67%  of  total  consumption  expenditure  in  the  country  in  2019.

Lagos  State  recorded  the  highest consumption  expenditure  at  N5,068,032,243,934.00 or 12.60% of total household  expenditure  followed  by  Oyo  (5.83%),  Delta  (5.38%),  Rivers  (4.99%)  Kano  State  (4.91%).

Down the table, Taraba recorded the lowest consumption expenditure at 297,379,724,360.00 or 0.74% of total household expenditure followed by Ebonyi (0.77%), Nasarawa (0.95%), Yobe (1.04%) and Gombe State (1.12%)

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