- Nairametrics’ recent checks reveal growing trends nationwide due to the fuel pump price increase from an average of N540 per litre to over N600 per litre, observed in major cities like Lagos and Abuja, as well as other locations.
- The fuel price increase has led to normal trends of commercial transporters raising their fares, resulting in many Nigerians being less willing to commute long distances, with examples of private sector workers paying significantly higher prices for regular taxi and coaster bus trips in Abuja.
- People are voluntarily leaving their low-paying jobs as their salaries no longer cover transportation costs.
In the wake of the recent fuel pump price increase from an average of N540 per litre to over N600 per litre, Nairametrics has conducted checks over the past four days, shedding light on some notable emerging trends nationwide.
Major cities like Lagos and Abuja, along with other locations across the country, have been witnessing the effects of this price hike.
Increased public transportation costs
One of the prominent trends observed is the surge in public transportation costs. As commercial transporters incur higher expenses due to increased fuel prices, they have adjusted their fares accordingly to maintain their profit margins.
Consequently, commuting expenses for many Nigerians have escalated, prompting them to be more cautious about undertaking long-distance journeys unless absolutely necessary.
This cautious approach comes as individuals aim to manage their budgets amid the challenging economic climate caused by the fuel price increase.
As the situation continues to unfold, it remains imperative for consumers and businesses to closely monitor these trends and adapt accordingly to navigate the evolving economic landscape in the country.
In Abuja for instance, private sector workers who receive meagre salaries pay up to N700 and N900 per trip in locations like Kubwa, Gwarinpa, and Area 1 in regular taxis as well as coaster buses.
Meanwhile, these trips used to cost N300 prior to this time.
Less traffic
Nairametrics has also noticed that there is less traffic than before.
In Abuja, the Mararaba-Nyanya-AYA-Wuse route is now free of too many vehicles, which is rather strange.
This is because before now, during weekdays and some weekends, the route was always busy with lots of cars and buses transporting people.
The traffic situation used to be so bad that some workers would still be stuck in traffic by 11 am because of the number of people commuting to work on that route.
Now, the roads are free, and the cars on that route are no longer as many as they used to be.
Further checks by Nairametrics revealed that a lot of private car owners have chosen to leave their cars at home while commuting to work as they can no longer afford to buy fuel at the current rates.
People opting for voluntary unemployment
Sarah John was a secretary at a small real estate firm in Benin, Edo state as of two weeks ago. Today, she is unemployed by choice.
Sarah told Nairametrics that she got the job through her aged Father, who advised her to take the job when her job-seeking efforts proved unfruitful after graduating from a Polytechnic.
She said that her N20,000/month salary cannot sustain her transportation costs, so she recently quit, and her employer saw reasons with her.
Nairametrics has also seen the same scenario play out in Abuja, where salespeople working at plazas in the Wuse district and living in Masaka must spend an average of N1000 per day on transportation plus lunch costs while receiving a monthly salary between N17,000 and N25,000, have recently made decisions to quit and stay at home.
Increased food prices
Food prices have been high for the better part of 2023, but more so now due to the increase in fuel prices.
Market traders are spending more on transporting foodstuff and other goods from communities to the local open markets.
So, in the end, consumers will pay more for food.
Due to food price increases, traders are not making as much profit as they used to because when buyers come to the market, they restrict purchases to what they need and they buy only the essentials, no extra purchases.
Mallam Yusuf Tanko, a trader in dry fish and fresh catfish at one of the open markets in Abuja, told Nairametrics that this week, his customers have been fewer, and they only buy a few fish to make soup.
He said the last time he experienced a similar drought in demand was during the CBN Naira Redesign policy implementation.
Heavy criticism of the proposed N8000 palliative for Nigerians
Nigerians are not happy about the proposed N8000 per family/month (for 6 months) palliative which is currently being reviewed by the Tinubu administration.
Nairametrics asked a few people what their thoughts toward palliatives are.
A popular bean cake (Akara) seller at Karu Market in Abuja, said she survives on over N8000/month, and she wonders why the government thinks such an amount is okay for a Nigerian family to survive on.
Meanwhile, Uche Ekwe, the Head of International Relations at the Nigeria Labour Congress (NLC) told Arise TV in a recent interview that the referenced palliative for six months would amount to N48,000 and he does not understand how the government could come up with that as a palliative for Nigerian families.
This is because fuel prices are skyrocketing and other goods as well.
This begs the question of how Nigerian families are expected to cope with just N8000 when everything has become unaffordable.