The Central Bank of Nigeria, (CBN) warns that more Nigerians may need to borrow money to cover their increasing expenses in the next six months. This could lead to financial difficulties for many families.
A revelation made in the July 2024 Inflation Expectations Survey, published on the CBN’s website, shows that household expenses will continue to go up until January 2025. Many Nigerian families might have to use up their savings or take on debt to meet their financial needs.
The survey conducted by the CBN involved 1,600 businesses and 1,650 households across Nigeria. It aimed to understand how people see inflation trends and what is causing prices to go up.
It also reveals that most respondents think inflation is high, with businesses being slightly less worried than households. However, large businesses are particularly concerned about the high inflation rate.
The survey found that all income groups are struggling financially, with many predicting the need to rely on savings or borrow money in the coming months. “Consumer confidence is broadly pessimistic, with indices of -21.8 for October and -9.1 for November,” the report notes.
The report suggests that the main drivers of inflation are changes in energy prices, exchange rates, and transportation costs.
To help ease the financial burden on Nigerians, the CBN may need to consider lowering interest rates.