Nigerian households became more pessimistic about their economic and financial conditions in September 2026, with a corresponding decline in their willingness to make major purchases, including houses, investments and other high-value items.
The development was contained in the latest Central Bank of Nigeria Household Expectations Survey, which showed that overall consumer sentiment fell to -18.7 index points in September, from -9.9 points in August.
The CBN said the decline reflected weaker household expectations about the economy, family finances and income, while essential expenses continued to take priority over major purchases.
Nigerians reluctant to buy homes
The survey showed that households remained hesitant to commit substantial portions of their income to major purchases.
The outlook index for house purchases stood at -68.2 points in September, making housing one of the areas with the strongest negative sentiment among the major purchase categories surveyed.
The outlook for acquiring cars and other motor vehicles stood at -67.3 points, while investments recorded -50.7 points. Household appliances and other consumer durables recorded -49.5 points, while the outlook for rent stood at -32.0 points.
The CBN said the figures showed that households were reluctant to spend large portions of their income on houses, vehicles and investments.
Buying conditions also remained below the 50-point threshold, which the survey uses to distinguish favourable from unfavourable conditions.
For September, respondents’ buying-condition indices for consumer durables, motor vehicles and buildings and landed properties stood at 19.4, 15.7 and 14.8 points, respectively.
The figures point to continued caution among households considering property purchases, at a time when income pressures and high living costs are competing with long-term spending plans.
Household confidence weakens
The overall consumer sentiment index declined by 8.8 points during the month.
The CBN’s index for current economic conditions stood at -21.5 points, indicating a negative assessment of prevailing economic conditions among households.
The Family Financial Situation Index was also negative at -23.9 points, while the Family Income Sentiment Index stood at -10.5 points.
The figures indicate that respondents remained concerned about both their household finances and income levels.
However, households expected conditions to improve gradually over a longer period.
Consumer sentiment was projected at -8.7 points for the following month and -0.4 points over the next three months. Over the six-month horizon, the index was projected to turn positive at 7.1 points.
The CBN said the expected improvement suggested that household willingness to spend could strengthen gradually if economic conditions improve.
Rising prices influence household priorities
The survey also showed that households perceived prices to be rising more strongly in September.
The Consumer Sentiments Index for average prices of selected items increased to 33.5 points in September, from 23.0 points in August.
The CBN said the increase indicated that households perceived the prices of selected goods and services to be high.
With household budgets under pressure, respondents continued to prioritise essential spending.
Food remained the dominant expenditure priority, followed by transportation, other household goods, education, electricity and water.
These categories were also expected to remain among the main areas of household expenditure over the following three and six months.
Housing demand faces affordability pressure
The weaker appetite for home purchases comes against a broader backdrop of pressure on household purchasing power and borrowing costs.
The CBN’s survey indicates that households are prioritising immediate necessities, leaving less room for major financial commitments such as buying homes, investing or acquiring property.
The reluctance is reflected not only in the negative outlook for house purchases but also in the low buying-condition index for buildings and landed properties.
For the housing sector, weaker household purchasing intentions can affect demand for residential properties, particularly where prospective buyers depend on savings or mortgage financing to complete purchases.
The CBN’s Monetary Policy Committee reduced the Monetary Policy Rate to 23 per cent at its September 21–22, 2026 meeting, down from 26.5 per cent previously. The committee also retained the Cash Reserve Requirement for deposit money banks at 45 per cent.
Despite the change in the policy rate, the household survey shows that consumers remained cautious in September, with financial concerns and perceptions of high prices continuing to influence spending decisions.
Essential spending remains dominant
The CBN survey further showed that households continued to concentrate their available income on necessities rather than discretionary and long-term purchases.
Food remained the leading expenditure priority, while transportation, household goods, education, electricity and water also featured prominently.
This spending pattern suggests that households are continuing to manage limited disposable income by prioritising immediate needs.
The CBN said sentiment across most expenditure categories was expected to strengthen slightly over the following six months, pointing to the possibility of a gradual improvement in household spending intentions.
For now, however, the September survey shows that housing, investments, vehicles and other major purchases remain areas where Nigerian households are exercising significant caution.
