Consumers are the lifeblood of most economies around the world. In large developed countries like the US, consumers (household consumption) make up about 68% of the economy. Similarly, in Nigeria, consumption makes up 64% of the economy.
Hence, consumer expectations have long been recognised as a critical factor driving economic outcomes. As a result, they form the backbone of strategic decisions for businesses and policymakers.
When households’ income is truncated, they won’t spend as much as they typically will, which slows the economy down and leads to a recession. This was the case during the Covid lockdown period, as consumers could not move around and make desired purchases. Nigerian businesses recorded that sales between Q2 2020 and Q4 2020 were 80% less than the preceding year’s period. As a result, a staggering 81% of the businesses surveyed by the National Bureau of Statistics (NBS) experienced a significant decline in revenue