By Jeph Ajobaju, Chief Copy Editor
Household expenditure soared to N54.84 trillion in the first half of 2021 (H1 2021), a 13.7 per cent rise against N48.22 trillion in H1 2020, according to latest National Bureau of Statistics (NBS) data.
National Disposable Income reduced 2.25 per cent in Q1 2021 and 5.35 per cent (Q2 2021) compared to 3.57 per cent growth (Q1 2020) and 2.12 per cent (Q2 2020).
The NBS Expenditure and Income Gross Domestic Product (GDP) report shows that H1 2021 household expenditure dipped 7.45 per cent lower than N59.25 trillion in H2 2020.
Final household expenditure consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption of goods and services.
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Final household expenditure grew 8.90 per cent in Q1 2021 and 19.08 per cent (Q2 2021). The annual growth rate was -0.57 per cent in full year 2020 (FY 2020), which was -10.42 per cent points lower than 9.85 per cent in FY 2019.
Breakdown
A breakdown of the figures by Nairametrics shows
- Final household expenditure of non-profits serving households – N504.38 billion in H1 2021 which was 18.6 per cent higher than N425.29 billion in H1 2020.
- The final consumption expenditure of the government – N4.23 trillion.
- Net exports contracted in real terms in Q1 2021 (by 110.50 per cent) and Q2 2021 (74.49 per cent. Net exports also contracted 30 per cent in FY 2020 after 7.64 per cent growth in FY 2019.
- Compensation of Employees in H1 2021 grew 9.26 per cent and in H2 2021 19.44 per cent. It grew 0.96 per cent in FY 2020 and 8.99 per cent in FY 2019.
- National Disposable Income declined 2.25 per cent in Q1 2021 and 5.35 per cent Q2 2021) against 3.57 per cent growth (Q1 2020) and 2.12 per cent (Q2 2020). It rose 1.57 per cent in FY 2020 and 0.35 per cent in FY 2019.
Nairametrics reports that the year-on-year growth aligns with GDP expansion GDP in Q1 2021 (0.51 per cent) and Q2 2021 (5.01 per cent).
Household expenditure accounted for the largest share of GDP at market prices, 76.83 per cent (Q1 2021) and 72.88 per cent (Q2 2021) compared to 53.68 per cent (Q1 2020) and 51.82 per cent (Q2 2020).
Explainer
GDP is the value of all goods and services available for final uses and export.
Expenditure measures the final uses of produced output as the sum of Final Consumption, Gross Capital Formation, and Exports less Imports.
Final household expenditure consists of expenditure by resident households on individual consumption of goods and services
