Why Nigerians Don't Want To Buy Cars, Houses In Next 12 Months - CBN

The Central Bank of Nigeria (CBN) has disclosed that Nigerians don't want to buy cars, houses and some certain properties in the meantime as many of them believe that unemployment will rise in the next one year. This was revealed in a Consumer Expectations Survey conducted by the CBN for third quarter 2020.

AllNews gathered from the report that the survey covered a sample size of 2,070 households drawn from 207 Enumeration Areas (EAs) across the country, with a response rate of 99.8 percent. It was learnt that Nigerians believe the next one year is not the ideal period to acquire cars and houses - which are known as big ticket (luxury).

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According to the CBN findings, "majority of consumers believed that the current quarter was not the ideal time to purchase big-ticket items like consumer durables, motor vehiclesand house & lot." The report added that, "most consumers do not intend to buy big-ticket items in the next 12 months."

This revelation comes as the respondents also stated that they believe unemployment will continue to rise in Nigeria. Note that unemployment rate within the country climbed to 27.1% as of August 2020. The unemployment rate rose from 23.1% of the third quarter of 2018.

"Consumers generally expect the unemployment rate to rise in the next one year." CBN said in its survey. During the same period, inflation rate is expected to rise. AllNews had reported that U.S economist, Steve Hanke, countered President Muhammadu Buhari on inflation claim.

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Hanke said Nigeria's inflation rate will actually be triple of what President Buhari disclosed while submitting and addressing the 2021 budget at the National Assembly three weeks ago. President Buhari stated that the inflation rate will rise to 11.29 percent in 2021, according to his administration's forecast, but Hanke, who was a Senior Economist with President Ronald Reagan's Council of Economic Advisers, had a different inflation projection for Nigeria.

Meanwhile, during the period inflation is expected to rise, borrowing rate, according to the CBN consumers expectation survey, will also rise in the next 12 months.

Click This Link To See Full CBN Survey.