Abuja, Nigeria. October 11th, 2016 –The Portfolio of Indices report released by NOIPolls Limited for Q3, 2016 has revealed that the NOIPolls Personal Well-Being Index (PWBI) increased by 1-point to stand at 64.9-points. The Personal Well-Being Index which assesses how Nigerians feel about their lives captures the people’s satisfaction with various aspects of life domains, and a general judgment of life quality. Among the indices that constitute the (PWBI) indicators, two indices were below average (Standard of Living: 49.06 percent and Personal Economy: 37.91 percent); with the Economic Index experiencing the highest decrease of 1-point in Q3, 2016.
Comparatively, the NOIPolls Consumer Confidence Index (CCI) which aims to measure the level of optimism that Nigerian households’ have about the overall state of the economy and their personal financial situation increased by 1-point to stand at 56.79-points in Q3, 2016. The 2 sub-components which make up the CCI, the present situation index and the expected index both increased by 0.3-point and 0.5-point respectively. The level of confidence consumers have in the economy determines how they spend, which in turn impacts on the overal economy. The CCI therefore serves as a key economic indicator which reflects the overall shape of the economy from the consumers’ perspective. These are the key highlights from the Q3 2016 Portfolio of Indices Press Release.
In February 2014, NOIPolls Limited introduced its portfolio of indices; the NOIPolls Personal Well-Being Index (PWBI), the NOIPolls Consumer Confidence Index (CCI) and the NOIPolls Eagle 30 Business Confidence Index (EBCI). The NOIPolls Personal Well-Being Index measures factors impacting on the lives of everyday Nigerians; thereby producing a complete view of the individual’s personal well-being. The NOIPolls Consumer Confidence Index provides consumer assessments of the economic situation and their intentions and expectations for the future. The NOIPolls Eagle 30 Business Confidence Index measures business leaders’ perceptions and expectations about the Nigerian business environment using the top 30 companies in the country.
Nigerian businesses, financial and government agencies largely depend on their perceptions and micro assessment of consumers’ expectation in making decisions. At best, they draw conclusion on the business environment based on information from their immediate surroundings while the minorities conduct surveys that are time and money consuming. However, the introduction of these indices provides indicators that will ensure stakeholders can detect and respond to changes in consumer behavior, the economy, and the business environment in Nigeria.
This report presents the Q3, 2016 results for the NOIPolls Personal Well-Being Index (PWBI) and NOIPolls Consumer Confidence Index (CCI).
The NOIPolls Personal Well-Being Index (PWBI)
The NOIPolls Personal Well-Being Index (PWBI) contains seven items of satisfaction, each one corresponding to the quality of a specific life domain. Having a good quality of life has always been desirable for Nigerians, and the concept of a good life and the ways of achieving it have become important over the years. In Q3 2016, the NOIPOllsPersonal Well-Being Index (PWBI) experienced an increase of 1-point to stand at 64.9-points. The Economic index experienced the greatest decline of 1-point in Q3, 2016. This is indicative that Nigerians are not satisfied with their present well-being.
Furthermore, the sub-components of the indices that made up the PWBI shows that Nigerians are pleased in terms of Physical Health (76.8-points), Social Interaction (78.9-points), and Religion (88.9-points). Subsequently, the results from Achievement in Life (53.6-points) and Personal Security (69.6-points) reveals thatNigerians are somewhat neutral in terms of those indices, while Nigerians are not pleased with their Personal Economic Situation (37.9-points) and Standard of Living (49.1-points). This infers that the Economic Index has remained the lowest ranked indicator in Q1, Q2 and 3Q, 2016.
The data trend also shows that the Economics index and Religion index were the only two indices that experienced a decrease of 1-point and 0.3-points respectively in Q3, 2016.
In-depth analysis of the monthly findings indicated that the NOIPolls PWBI experienced the largest increase of 65.9-points in the month of July 2016 when compared to other months in 2016. This represents a 1.4-points increase when compared to a 9 months average of 64.5-points.
The NOIPolls Consumer Confidence Index (CCI)
The Consumer Confidence Index measures the level of confidence individual households have in the performance of the overall health of the economy. It is important because consumption spending drives a certain percentage of Nigeria’s GDP. Nonetheless, the NOIPolls Consumer Confidence Index in Q3, 2016 increased by a slight 0.4-point to stand at 56.8-points. This slight leap suggests that consumers might have slightly increased their consumption in Q3, 2016, inferring that the satisfaction of consumers plays an important role in the nation’s economy in terms of their purchasing power.
There are 2 Sub-components of the NOIPolls Consumer Confidence index; the Present Situation Index (PSI) and Expectation Index (EI). The PSI increased by 0.3-points to stand at 21.2-points which indicates a slight increase in consumption of goods and services by Nigerians. Investors are particularly advised to take advantage of an increase in consumer confidence as Nigerians at this point may purchase more goods and services. Equally, recent data trend shows that the Expectation Index (EI) slightly increased by 0.5-point to 83.5-points in Q3, 2016. A high expectations for the future indicate that consumers will be more willing to spend now or in coming months. The increase shown by these two independent variables indicated that the buying power of Nigerians slightly strengthened when compared to Q2, 2016.
Trend analysis reveals that the overall CCI increased by 0.4-point in Q3, 2016 when compared to Q2, 2016. This slight increase in theconsumer confidence could infer that Nigerians are expected to increase their purchases of goods and services, hence in anticipation of this change, investors should take advantage of this opportunity.
In conclusion, current result has revealed that the NOIPolls PWBI increased by 1-point to stand at 64.9-points whereas, the individual indicators that make-up the PWBI showed that the Economic indices had the highest decrease of 1-point in Q3, 2016. On the other hand, the NOIPolls Consumer Confidence Index increased by 0.4-point. Finally, the two independent variables of the CCI; the Present Situation Index (PSI) and the Expectation Index (EI) both experienced an increase of 0.3-point and 0.5-point respectively in Q3, 2016. This is indicative that that consumer’s ability to spend have slightly increased despite the falling economy of the nation.
The Personal Well-Being Index and Consumer Confidence Index Polls were conducted in Q3, 2016. The PWBI involved telephone interviews of a random nationwide sample. 3,000 randomly selected phone-owning Nigerians aged 18 years and above, representing the six geopolitical zones in the country, were interviewed. With a sample of this size, we can say with 95% confidence that the results obtained are statistically precise – within a range of plus or minus 3%.
In addition the CCI involved telephone interviews of a random nationwide sample. 3,000 randomly selected phone-owning Nigerians aged 18 years and above, representing the six geopolitical zones in the country, were interviewed. With a sample of this size, we can say with 95% confidence that the results obtained are statistically precise – within a range of plus or minus 2%. NOIPolls Limited, No1 for country specific polling services in West Africa, works in technical partnership with the Gallup Organisation (USA). We conduct periodic opinion polls and studies on various socio-economic and political issues in Nigeria. More information is available at www.noi-polls.com
This press release has been produced by NOIPolls Limited to provide information on all issues which form the subject matter of the document. Kindly note that while we are willing to share results from our polls with the general public, we only request that NOIPolls be acknowledged as author whenever and wherever our poll results are used, cited or published.
NOIPolls hereby certifies that all the views expressed in this document accurately reflect its views of respondents surveyed for the poll, and background information is based on information from various sources that it believes are reliable; however, no representation is made that it is accurate or complete. Whilst reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or fact or for any views expressed herein by NOIPolls for actions taken as a result of information provided in this report. Any ratings, forecasts, estimates, opinions or views herein constitute a judgment as at the date of this document. If the date of this document is not current, the views and content may not reflect NOIPolls’ current findings and/or thinking.