Standard of living of Nigerians declines

Tumininu Ojelabi Hassan

As the nation struggles with economic hardship occasioned by the rising level of inflation, Nigerians lament over the widespread austerity experienced in the country, as most people currently struggle to meet their basic needs, with a consequential decline in purchasing power.

According to data from the National Bureau of Statistics, Nigeria’s annual inflation rate accelerated to an 18-year high of 26.7% in September 2023, up from 25.8% in August 2023. This is mainly attributed to second-round effects of the removal of fuel subsidy and the devaluation of the Naira against the greenback on both the official and parallel markets.

Aside this, price of food, which is the most relevant in the consumer purchasing index, CPI, basket increased to 30.6% in September, the highest since August 2005, from 29.3% in the previous month, also linked to security issues in food-producing regions. I’m

Additional upward pressure came from other CPI items, including transportation (27.2% from 27.1%); housing and utilities (22.5% from 21.8%); and miscellaneous goods and services (21.9% from 21.8%). The annual core inflation rate, which excludes farm produce, rose further to 22.1% in September from 21.2% in August. On a monthly basis, consumer prices rose by 2.1% in September, following a 3.2% surge in August.

Some Nigerians, who shared their plights with our correspondent, said they could barely afford to feed and meet their daily needs. Over 90% of the respondents said their monthly income was only sufficient for essential needs like food, transportation, utilities and rent.

Collins Akpan, a communications expert, said his income wasn’t enough to cater for the needs of his family anymore as opposed to two years ago when he could afford to go on a vacation with his family.

“We are basically in a survival mode in this country right now. About 90% of my salary is spent on food, transportation, school fees and other bills. Two years ago, my family and I went on a vacation to Dubai but this year we are not thinking about it at all. Going on a vacation now is considered a luxury,” he said.

Dapo Oyewole, a manager of a lounge in Ikeja area of Lagos, revealed that the economic situation had an adverse impact on his business, as its revenue in a month dropped by over 50%.

“The situation is tiring. It is telling on my business badly. Before now, within a month I used to make at least 10 million in my lounge, presently we don’t even generate up to 50% of our previous revenue. Most people do not come to the lounge like before.

“At a point I started reaching out to some of our customers, they all complained of the bad economy. We are in a situation where people are trying to survive, going to a lounge is the least of their worries right now. My colleagues, who also run clubs and lounges in other locations are complaining of the same thing. Despite the drastic drop in sales, the expenses keep increasing. Last month, I laid off two employees to reduce overhead cost. I spend over N60,000 on diesel every week and it is never enough. This is a very difficult phase for every business owner,” he decried.

Sandra Aniegbo, a social media manager, who is also a fashion lover, said most part of her income was spent on food, transportation and data subscriptions.

“Before now, I could afford to buy wigs, shoes, clothes and bag, the last time I went on a shopping was in February. I can’t afford these things any longer. We are in a dire situation in this country. I spend most of my income on food, transportation, data subscriptions and other things. Basic things have been become luxuries,” she stated.

For Olawande Ogunyemi, the economic crisis has been a threat to her boutique business, which she started in 2021, adding that patronage has decreased due to the prices of clothes owing to the rising level of dollar rate.

“Customers do not want to buy clothes. Even when they send a message to make enquiries about a cloth, the conversation usually ends with ‘I will get back to you’ and they will never get back to me. The dollar rate is also frustrating, which is affecting the prices of clothes and this is discouraging people from buying. It is not my fault too, I fix prices based on what I buy. It is frustrating, when you have a business and you can’t meet your basic needs. Basic things are now like luxuries,” she shared.

Olakunle Alonge, a businessman, opined that the economic reality requires saving cost by all means possible, thus no room for luxurious spending.

“I don’t think most people are spending money on luxury right now, the economic reality doesn’t give room for such. I am trying to save cost by all means possible, I have reduced my expenses to the barest minimum. I hardly drive my car out these days, I would rather board a public bus because it is cheaper.

“I make sure there is justification for anything I spend my money on now because there is no room for luxury at all. We have been complaining of hardship but it has never been this hard. It is quite impossible to stick to a budget these days. Prices of food keep increasing, the food items you bought for N5000 two months ago are over N10,000 now, the dollar rate keeps rising.

“People are struggling to feed and businesses are striving to survive. When people are living from hand to mouth, I don’t think going on vacation and having fun will be their top priority. I am not saying it is bad to spend your money on luxury, if you can there is absolutely no problem with that. If I can afford to go on vacation now, of course, I wouldn’t mind, however, the current economy can’t accommodate such,” he stated.

Ebuka Ohuche, shared his view on the economy and its impact on the lifestyle of Nigerians.

“With this new development, the only option we are left with is altering our lifestyle to suit the current economy. Everyone wants the good things of life but the question is, can you afford it now?

“We have more pressing issues at hand. We are in a situation, where people can’t afford their needs. We have to come to terms with the fact that the economy is bad and the best way out of it is to adjust our lifestyle. The economy is affecting my social life, Before now, my friends and I used to hangout at the club frequently, but currently we only hangout once in a while,” he said.

For Beatrice Ibe, her children couldn’t go on a summer vacation in August due to financial constraints, however, she is planning towards a family vacation in December.

“This economy is affecting both the rich and poor. No one is left out. We just have to manage the situation till it gets better. Our normal practice in my family is to take our children on a summer vacation but we couldn’t do that this year, however we are planning a family vacation in December. It’s been a tough year, I believe my family and I deserve the vacation because it is therapeutic, it is a chance to bond and also map out plans for the next year,” she state