Christmas is around the corner, but it may not be merry for many Nigerians battling rising inflation, which has weakened their purchasing power.
The costs of basic items needed to make Christmas a merry one have skyrocketed over the years, with Nigerians having to spend more on food and drinks, clothes and shoes, and transport.
According to the National Bureau of Statistics (NBS), the headline inflation rate was 28.2% for November 2023, representing the 11th consecutive month of increase so far in the year and the highest level since July 2005 (over 18 years).
The NBS noted that the major drivers of Nigeria’s inflation in November 2023 were food and beverages, road and air transport, pharmaceutical drugs, and accommodation, among others.
Increase in cost of food and drinks
According to the composite consumer price index of the NBS, the average cost of getting food and drinks has increased by 92.73% in the past three years.
- The NBS recorded 395.6 as the price index for food and non-alcoholic beverages in November of 2020.
- By November of 2023, this price index has increased to 762.4, showing an increase of 92.73% in three years.
- A year-on-year analysis shows that the price index for food and non-alcoholic beverages rose by 17.15% from 2020 to 2021, 24.03% from 2021 to 2022, and 32.63% from 2022 to 2023 in November of each year.
- Also, Nigerian households are expected to spend more of their December income on food items such as rice, bread, yam, vegetables, and tomatoes as food inflation hits 32.84%.
- Further analysis shows a significant increase in the prices of food items within three years, from 2020 to 2023 in October. The NBS is yet to release the selected food prices report for November.
For instance, the price of local rice sold loose 1kg rose by 105% from N400.47 to N818.42 while that of imported rice rose by 92% from N530.32 to N1,016.12 within three years.
Also, the cost of a kilo of frozen chicken, which is a common choice of protein for Christmas, rose by 107% from N1932.56 to N2,172.99 in the same period.
The highest increase was recorded for unripe plantain (170%), ripe plantain (161%), and a bottle of groundnut oil (148%) from 2020 to 2023.
According to the ‘Orda Pulse 2023: Food Trend Tracker report by Orda Africa, a Nigerian food tech startup, Nigerians are now spending an average of N4,703 per meal at restaurants, with beef emerging as the preferred protein over turkey and goat meat in Lagos.
Increase in cost of Christmas clothes and shoes
Data from the NBS composite price index also shows that there has been a 57.48% increase in the cost of clothes and shoes in the past three years.
There was an increase from a price index of 320.8 in November 2020 to 505.3 by November 2023.
Annually, there was an increase of 14.76% in November 2021. A steady increase was maintained to 17.66% by 2022 and it dropped marginally to 16.63% by 2023.
Mrs Zere Pam, a recently married woman based in Abuja with a son lamented the high cost of things, which has limited her family’s ability to fully celebrate Christmas. She also noted that she could not afford to buy any Christmas clothes for her son as she used to do in the past, noting that it would be a regular Monday for her and her family.
She said:
- “We just dey like this. We thank God we are seeing the Christmas. Na normal food we dey chop for the house we go eat that day. It is just a normal day for me this year honestly. It is not like the usual Christmas. It is just going to be like a normal Monday.”
Increase in cost of transport
With the removal of fuel subsidies, there has been a significant increase in the cost of transport. Data from the NBS shows an increase of 74.65% in three years in the price index for the transport sector.
There was an increase from a price index of 311.7 in November 2020 to 544.4 by November 2023.
Annually, there was an increase of 15.03% in November 2021, 19.53% in November 2022 and 27.02% in November 2023.
- For Happiness Bam, a young lady in her early twenties based in Abuja, it may not be a happy Christmas as she claims not to have enough cash to visit her family in Jos, considering the money she has to spend when she gets there.
- President Tinubu recently approved a 50% discount on road transport travel across the country from December 21, 2023, to Jan 4, 2024.
This is part of his plan to ease the lives of Nigerians, particularly during the festive season.
Announcing this, the Minister of Solid Mineral Development, Dele Alake, had said:
- “In the spirit of Christmas and demonstration of his love for Nigerians as proof, he feels the federal government should intervene to bring down the costs of public transportation to allow persons who want to travel to visit their loved ones.”
- “It is in this wise that the Federal Government is announcing, beginning from tomorrow, a special discounted holiday season fare on road transport and zero-fare by rail across Nigeria.
- “What this means is that from tomorrow, Nigerians willing to travel can board public transport via minibusses, luxury buses at a 50% discount of current cost and all our train services on the routes the trains currently serve at zero cost to and fro on their travels this holiday season.”
- “This special presidential intervention will commence tomorrow Thursday, December 21. It will end on January 4, 2024. The Federal Government through the Ministry of Transportation will be working with transporters, road transport unions, and Nigerian Railway Corporation to seamlessly deliver on this special presidential initiative.”
The Federal Government listed five transport firms, which include God is Good Motors (GIGM), Chisco Transport, Young Shall Grow, God Bless Ezenwata, and Area Motor, to participate in the implementation program by reducing the burden of traveling five million Nigerians during the yuletide.
However, former governor of Anambra state and presidential candidate of the Labour Party in the 2023 general election, Peter Obi,, criticized the implementation process of the 50% fare reduction intervention.
He noted that the Federal Government had not announced any checks and balances to ensure that the five transport companies chosen followed the terms of the contract.
While acknowledging the good in the government’s plan, Obi said that the weak structure of the government encouraged less than transparent policy implementation.
More Insights
- Living in Nigeria has become challenging, as prices of basic items have soared to an unprecedented peak. There has been a significant surge in food prices, triggered by the abrupt removal of fuel subsidies and the floating of the naira.
- Nigerian households are cutting down on purchases and forgoing traditions as food prices keep rising relentlessly.
- With headline inflation rising to 28.2%, many households are expected to spend a huge chunk of their hard earnings on purchasing food items to celebrate Christmas with their families.
- The most expensive states to spend Christmas in Nigeria include Kogi, Lagos, and Rivers.
