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Nigeria’s Consumer Sentiment Makes Positive Gains

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Against the backdrop of the unprecedented COVID-19 pandemic, West African consumer sentiment has experienced a lift of 8 points in the Nielsen Consumer Confidence Index (CCI) for Quarter 3, 2020 with Nigeria CCI increasing to 116, up from the previous quarter’s 108 points.

Nielsen West Africa Retail Intelligence Lead Ged Nooy comments; “The latest consumer sentiments reflect the country’s continued cautionary concerns albeit with some practical fine-tuning. As the global pandemic continues to affect world economies and put pressure on consumers’ pockets, Nigerians consumers are making lifestyle adjustments and taking actions to protect their long-term economic future.”

Equitable optimism by Nigerian consumers also sees improved confidence around the opportunity of job prospects, with 55% of consumers saying they will be good or excellent in the next 12 months – a 12-point increase from the previous quarter. In terms of the state of their personal finances over the next 12 months, 67% say they are excellent or good, showing a substantial 8-point increase from the previous quarter.

Nigerian propensity to purchase has seen a continued decrease quarter on quarter, with the number of those who think now is a good or excellent time to purchase what they want or need rise just 1 percent from 32% to 33% in the third quarter.

Once they meet their essential living expenses, however, the highest number of consumers (75%) put their spare cash into savings, a drop from 81%1 percent from last quarter, followed by 72% who choose to invest in stocks and mutual funds.

One of the most significant increases in discretionary spending is the purchase of tech up from 51% to 57% – a clear indicator of consumers’ mindset shift away from non-essential services and their desire to make necessary work/life changes under the pandemic protocols.

Sluggish Recovery

To reduce expenses, 50% of consumers said they spent less on new clothes, 54% spent less on out of home entertainment, with the same figure deferring on the replacement of major household items. As much as 33% of Nigerian consumers said they had spare cash, up 1% from last quarter.

When looking at the practical factors that are affecting their outlook, the top consumer concerns over the next twelve months are increasing food prices at 34%, followed by life/work balance at 20% and the economy at 17%.

Nooy comments; “Nigerian economic recovery is of concern to consumers and may be more gradual than expected due to a drop in oil prices and restricted trade opportunities. The country has opportunities to transform its economy however, particularly in agro-processing beyond the pandemic.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS

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Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

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Economy

Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey

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The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

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Economy

Scarcity of Day-Old-Chicks Cripple Poultry Farmers in Akwa Ibom

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Despite billions of Naira spent on Akwa Prime Hatchery and Poultry Limited by the Executive Governor of Akwa Ibom State, Udom Emmanuel, poultry farmers in the state said they had to order day-old-chicks from outside the state as the 200,000 capacity poultry farm developed specifically to make day-old-chicks and other poultry products available at affordable prices is almost empty at the moment.

The farmers expressed frustration over many challenges they face in the course of bringing day-old-chicks from outside the state. Usually, Ibadan, Enugu and sometimes as far as Kaduna, while the hatchery built and inaugurated in 2016 remains idle.

Mr Ekot Akpan, one of the poultry farmers who spoke with the pressmen said the state had not had it this bad.

Akpan said: “For the 12 years that I have been in poultry farming, this is the first time that poultry farmers have been so harshly affected by both economic and non-economic factors. And, quite unfortunately, nobody is available to offer any explanation.

“Farmers have been left at the whims and caprice of owners of the means of production.

“There seems to be no government regulation of the poultry industry. How, do you explain a situation where you wake up suddenly and the price of a day old chick is selling for N600, a bag of feed goes as high as N6,000.

“And, in a state that government claims to be pursuing agriculture as one of his cardinal programmes.

“For instance, in 2016, the state government said it has constructed an hatchery, and the intention according the government was to ensure availability of day old chicks at affordable price to farmers, but, quite, unfortunately, that effort has not yielded any tangible result.

“Farmers are still getting their day old chicks from Ibadan, Kaduna, and Enugu. So, the question now is where is the hatchery?

“One would have expected that farmers would be buying old chicks at humane prices, but, from all indications they acclaimed hatchery is a ruse. So, which one is the Akwa Prime Hatchery producing,” he said.

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