Public sentiment turns gloomy on overall economic outlook for the first time in nearly 5 months

Consumers have expressed a pessimistic outlook on the macroeconomy for the first time since November 2025, with their overall sentiment dropping to -10.3 index points in March, down from 0.8 index point in February.

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This downturn was revealed by the Central Bank of Nigeria in its March 2026 Household Expectation Survey Report, which was released yesterday.

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The Overall Consumer Sentiments in March 2026 stood at -10.3 index points, a significant decline from the 0.8 index points recorded in February 2026, indicating a pessimistic view of the macroeconomy.

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The Economic Conditions index also posted a pessimistic outlook, with -14.5 points in March 2026, reflecting households' negative views on current economic conditions.

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Furthermore, the Family Financial Situation Index stood at -14.7 points in March 2026, indicating that respondents were pessimistic about their household finances.

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The Family Income Sentiments recorded -1.3 index points in March 2026, signaling a mildly pessimistic outlook on family income.

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Households also perceived prices to be high compared to February 2026 and expect a moderate rise in prices over the next six months.

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The Consumer Sentiments Index on price changes registered 40 points in March 2026, indicating that households saw prices as higher than in the previous month.

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Looking ahead, households expect price levels to remain moderately high over the next six months, with 66.4 percent of those surveyed expecting the Nigerian economy to deteriorate if prices increase at a higher rate.

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In contrast, the CBN Business Expectation Survey Report for March 2026 showed that businesses were confident in the macroeconomy, with a Confidence Index of 15.6 index points.

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This optimism among businesses is expected to improve gradually to 43.9 index points in the next six months, with all sectors expressing optimism about the macroeconomy.

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The Agriculture Sector recorded the highest confidence, while the Mining & Quarrying sector had the highest prospects for employment, and the Agriculture sector had the highest plan for expansion in April 2026.

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The Manufacturing sector recorded the highest capacity utilization in the current month, according to the report.

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However, respondents identified insufficient power supply, insecurity, high/multiple taxes, high interest rates, and financial problems as the top five business constraints in March 2026, affecting operational stability and profitability.

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These findings highlight the need for improvements in energy supply, security conditions, and the regulatory/financial environment to enhance business stability and profitability, according to the CBN.