How Nigeria’s 18-Year Inflation is Threatening Your Christmas
As Nigerians prepare for the festive mood, inflation has reached an 18-year high, pushing food prices beyond the reach of common people and threatening to ruin the hopes of millions of Nigerians who look forward to the yearly celebration of Christmas.
Two months ago, a kilogram of local rice sold for ₦757 in September 2023, up from ₦471 a year earlier, according to September Selected Price Food Watch data released by the National Bureau of Statistics (NBS). Additionally, on a year-on-year basis, the price of bread increased from ₦511 in September 2022 to N708 the following year.
However, the purchasing power of Nigerians has been further eroded as inflation climbed to nearly a two-decade high of 27.33 percent in October, an addition of 0.61 percent from the previous month. The price of food witnessed the most significant increase, with a steep rise of nearly 2 percent between September and October 2023.
The continuous increase in commodity prices is putting many Nigerians on the edge, with many of them spending over 90 percent of their income on food alone. But as Christmas and New Year draw near, a period that often witnesses a surge in the price of commodities, Nigerians are likely to be forced to tighten their expenses.
Prices from Neusroom price checks at various supermarkets in Lagos, the nation’s economic hub, show that for the months ending in October and November, a loaf of bread hovers around ₦850 to ₦1000.
Financial experts predict that with the Christmas period barely a month away, the cost of goods and services will continue to rise, risking pushing more Nigerians below the poverty line of $1.9 per day.
Damilare Akanni, a financial expert, explained that the recent increase in inflation that the country is witnessing, aided by the removal of fuel subsidies, has the most devastating effect on ordinary masses.
“It is the common man that will bear the brunt of inflation. What inflation does is reduce the purchasing power of the income you have. So, in layman’s terms, the increase in inflation means that what your money could buy yesterday, it cannot afford to buy it again,” Akanni said.
With 88.4 million Nigerians living in extreme poverty, accounting for 12.9 percent of the population according to a 2022 data, entrenched inflation drove more than 4 million Nigerians into poverty within the first five months of 2023.
“Inflation basically means the rise in the prices of goods and services. And who are the consumers of goods and services? Of course, the households,” Akanni said. “So, it is not surprising that many Nigerians are now soliciting financial assistance as many households cannot afford to keep up with the rising cost of goods.”
On December 25, 2023, Nigerians will celebrate Christmas, the world’s most observed holiday. However, many families might not be able to afford the fun time and togetherness that comes with the celebration. Due to the increase in transportation costs, many might not be able to travel to their hometowns to celebrate the festive period with their families. Others might be forced to curtail their expenses and shun entirely hosting lavish ceremonies.
“More than ever, Nigerians need to prioritise personal budgeting to stay afloat in the face of the rising inflation” Akanni advised.
