CBN: Many Nigerians Will Borrow To Survive Economic Hardship

The Central Bank of Nigeria, CBN, says many Nigerians may resort to borrowing to mitigate the current economic hardship in the country.

The CBN made this known in a report highlighting the impacts of the current economic situation on many families, analysts insist.

According to the report, titled “Inflation Expectations Survey Report” for July 2024, the apex bank said many Nigerians will struggle to meet their expenditures between now and 2025.

The magazine had earlier reported that some Nigerians lamented their incapacity to afford basic food items due to the worsening economic situation in the country.

“My husband is a monthly earner with less than N100,000 salary. A few years ago, he used to buy rice, beans, noodles and spaghetti for the family, but now he can’t afford them. That is why he asked me to manage the little he can afford with the kids and be eating only twice a day; nowadays, we don’t even give food to our visitors,” Fatima Idris, a Kaduna resident told the News Agency of Nigeria, NAN.

Muhammed Bello, another resident said the cost of meat and fish has been priced beyond his family reach, saying they have to improvise to make ends meet.

My family, Bello said ”eat food, but I don’t buy meat or fish because I feel those are luxuries for now, and I can’t afford them. I do ensure I buy them eggs once a month.

“The situation we are in this country, family men are really facing hard time; from food to school fees and rent, we are just living by the special grace of God..”

To survive, the CBN stated further that increasing cost of living may push many Nigerian families to eat up their savings.

The survey, conducted from July 14 to July 26, involved 1,600 businesses and 1,650 households across all 36 states and the Federal Capital Territory. The purpose of the survey was to gauge how businesses and households perceive current and future inflation trends, as well as the primary drivers of inflation.

The report revealed that 83.7 percent of respondents viewed the current level of inflation as high, with an overall perception index of -61.1 points. Businesses were slightly less pessimistic about inflation compared to households, with an index of -58.7 points and -63.3 points, respectively.

The report also highlighted that large businesses are particularly concerned about inflation, with an index of -70.8 points, reflecting a strong belief that the current inflation level is excessively high.

Meanwhile, the federal government, on Thursday, issued a marching order to food retailers in the country to bring down the prices of food items within one month.The ultimatum was issued by the chairman,  Federal Competition and Consumer Protection Commission, FCCPC, Tunji Bello yesterday.