The “robust” survey conducted by the National Bureau of Statistics (NBS) during the post-planting season and post-harvest season of 2010/11 and 2012/13 is trove of intriguing details on Nigerian households’ size, occupation, investment and consumption habits.
The survey shows that the average household size in Nigeria is 5.7. Average rural household (6.1) is larger than the urban household (5.2). Families in the North East are the largest with an average of 7.7 while the smallest families are in South East and South West (4.6).
Are Nigerians spending more on entertainment e.g. television, education, cement? The data, based on a survey of 5,000 households captures access to certain TV, radio, mobile phones and internet. Increased access however is an indicator, because more is spent on entertainment as income rises. A sharp rise in the number of households with televisions is another indicator of rising income.
However, the data on non-food items and services bought in the last year paints a fascinating picture. In general, Nigerians spent the most on health (excluding insurance). Building (cement, bricks, timber, iron sheets, tools etc) and funeral costs were second and third.
Though there was no data on tobacco and alcohol, the amount spent on clothing items and marriage ceremonies serves as a proxy on how much Nigerians spent on entertainment in the last year.
Readymade clothes and tailored clothing are major non-food items. Most Nigerians, especially those in the South West, bought Anakara/George materials, followed by donations to church, mosque and religious group. Tailoring charges invariably made the list, given the amount spent on Ankara/ George materials coupled with a preference for tailored clothes.
In terms of access to media, the radio is prevalent followed by mobile phones and television. Access to personal computers and internet is highest in South South; the number is above the national average.
Across the country households are most vulnerable to the death or disability of an adult working member; increase in food prices consumed; illness of an income earner; business failure; death of someone who sends remittances; (expenditure on life insurance is abysmally low).
A 2012 survey by Enhancing Financial Inclusion and Access (EFInA) supports the finding of NBS survey.
In its survey, EFInA found that the top two risks that affected household finance were serious illness of a household member and death of a relative. Failure of a business and destruction of agricultural produce were next two risks with the greatest impact. Interestingly, the loss of a job was the risk with least impact. This suggests that most households depend on a single member of the family for finance.
For households in the South East kidnapping/hijacking/robbery/assault was a risk that could change fortunes for the worse. Households in the North West, South South and South East are most susceptible to death of a relative who regularly sends remittances.
So how they cope? Cutting down expenses (food consumption), borrowing from family or friends were the most common coping mechanisms. Few resorted to insurance products. Most do nothing, according to the NBS survey. This is a clear indicator of hopelessness.
Hope matters. Even if their consumption of cement, health services and alcoholic and non-alcoholic beverages at weddings and funerals contribute to Nigeria’s strong economic growth, the insurance most Nigerians need is a good, steady, well-paying job.
By: Tayo Fagbule
