Constant price data are adjusted for inflation, meaning they strip out the effect of rising prices to measure actual changes in economic activity. The fact that nominal spending rose while real spending plunged shows that Nigerians are spending more money but getting less value, with inflation swallowing a large share of household budgets. The steep fall in real household spending is consistent with the sustained double-digit inflation that characterised the year. While employers may have raised salaries on paper, those increases were not enough to keep pace with rising prices. In this case, the slump in real household spending signals weakening domestic demand, which is a key engine of economic growth.

Source: Punch January 06, 2026 09:41 UTC