As the joyous Christmas and New Year season approaches, a cloud of economic hardship looms over many Nigerian families, compelling them to brace for a low-key celebration. The surge in prices of goods and services, exacerbated by the removal of subsidies on petrol, has left families grappling with financial strain and prompting them to adopt life-changing measures to cut costs.
Worsening Poverty Statistics:
Official data reveals a stark reality—63% of Nigerians, approximately 133 million people, are currently living in multidimensional poverty. A recent United Nations report paints a grim picture, indicating that over 40 million households in the country are classified as poor.
Impact on Everyday Lives:
The removal of the petrol subsidy has played a pivotal role in the economic woes faced by many families. The consequent increase in the cost of transportation and essential commodities has triggered a cascade of challenges, affecting everyday lives.
“Life has become tougher for us due to the rising inflation of goods and services. The removal of the petrol subsidy has added an extra layer of difficulty,” shares a concerned Nigerian family.
Soaring Food Prices:
A comprehensive survey conducted by Sunday PUNCH exposes the harsh reality faced by consumers, particularly regarding staple foods. The price of a bag of rice has skyrocketed from N48,000 in October to an alarming N55,000. Other essential items, such as frozen fish, chicken, turkey, and cooking essentials, have experienced substantial price hikes, leaving families with limited options.
A trader in Lagos reflects on the impact: “Customers are complaining, and they always lament when they come here. The rising prices are not our fault.”
Reduced Patronage and Struggling Businesses:
Markets across Lagos and Ogun states are witnessing reduced patronage as consumers grapple with the high cost of living. Traders express concerns about the upcoming festive season, anticipating a decline in sales due to inflated prices.
A Lagos-based trader, Mrs. Ilerioluwa Bamisaye, remarks, “I doubt people will come out to buy much this year because the prices of items have tripled.”
Transport Fares Soar:
The ripple effect of economic challenges extends to transportation, with bus terminals in Lagos reporting a nearly 100% increase in fares to various destinations. Passengers are left to navigate significantly higher travel costs, prompting some to reconsider their plans for festive visits.
A passenger, Mrs. Chiwendu Osu, expresses shock at the escalating fares: “The fare was N8,000 in March. How can I pay N19,000 now?”
Families Cut Costs and Reduce Travels:
Facing the economic crunch, families are adopting various strategies to cut costs. Many have canceled plans for festive travels, opting to send money to relatives instead. The inability to afford new clothes for the festive season is becoming a reality for many parents.
A father of four, Mr. Joseph Temitayo, shares, “I already explained to them that they would have to choose between food and clothes.”
Economic Experts’ Concerns:
Economic experts emphasize that the inflation rate will continue to rise if the government implements policies that hinder growth. They suggest that ill-timed policies and inadequate management of economic challenges contribute to the ongoing crisis.
Dr. Musa Usman, a development researcher, urges the government to declare a state of emergency on the economy, stating, “The Federal Government must show leadership in the way that it runs the affairs of the state.”
As the festive season approaches, Nigerian families find themselves navigating a challenging economic landscape, prompting a reassessment of traditional celebrations and expenditures. The struggle against inflation and economic hardships continues, casting a shadow over what is supposed to be a season of joy and merriment.
