Nigerians face bleak Christmas over rising prices of foodstuffs

Adebayo Obajemu

Barely eight days to Christmas celebration, the horizon looks dark and gloomily cloudy for Nigerians as food inflation, rising cost of living and general economic meltdown may have hobbled the hope and plans of many Nigerians who have been looking forward to a sizzling, fulfilling Christmas celebration.

“We don’t need a soothsayer to tell us that families in Nigeria today are under unfair intense pressure brought on them by irresponsible governing architecture; and wicked leaders, who have no scruples coming up with sadistic policies to increase the woes of innocent Nigerians. The removal of fuel subsidy without viable palliatives , and other abracadabra policies are at the heart of what Nigerians are facing. “Can you imagine a derica of rice now in my locality is around ₦1000, bean is now ₦700. A 50kg rice hovers between ₦65000and ₦70000 for imported one while the local rice is put at ₦50000”, Dr. Ayobami Aderemi, a retired university don told Business Hallmark.

Aderemi stated that “it’s sure that for many families this year’s Xmas and New Year celebrations will be low key. I cannot speak for politicians.”
When Business Hallmark went round the town, the gloom in the air was palpable as many Nigerians wore long faces.

Dr.Olufemi Omoyele of the Department of Entrepreneurship at Osun State University, said there are fears of an impending food crisis in the nation.
“It’s a worrisome situation that estimated 125 million people in Africa’s largest economy have experienced a continuous rise in costs for basic goods, especially foods, since 2020. Now, that Xmas is around the corner, families are trapped in vicious cycle of poverty and rising prices. What we are witnessing is unprecedented, the high level of suffering, when we are not in war situation.”

Most Nigerian families have reduced their food intake from three square meals a day to two or even one.

Jide Adebanjo, a motor mechanic lamented the agony he daily goes through to feed his family of five “The inflation is just increasing on a daily basis, and it is affecting all the sectors. Think of any item, it is affecting it. An egg is now N100. Mudu (a medium-sized measuring bowl) of Garri is now N600. The only thing one can do to balance the situation is do opportunity cost – things that are most important are what you should focus on, and things that are not important, you leave it out”, he stated.

Biodun Olapade, a university undergraduate said “I don’t know what will happen now when I get back to school. You can’t imagine that even at home we are yet to purchase Xmas foods. The prices keep rising.
“When I got to university two years ago, my dad used to give me monthly sum of N20,000, I always used N10,000 out of it for provisions and foodstuffs.

“The rest went to handouts, clothing and other basic needs. But now the same amount doesn’t sustain me for more than two weeks for foods alone. School fees now are rising astronomically. I was paying ₦45 000 for tuition but now, according to the new circular, it has been jerked up to ₦80,000.”

Janet Ayobami, a foodstuffs seller at Alakuko complained of low sales.” About a month ago , we used to sell a mudu of rice at between ₦750 to ₦800 but now it’s ₦900. It’s not our fault. There’s inflation. A derica of beans now goes for ₦700 instead of ₦600 about a month ago.

‘‘In a lot of ways generally, the profit margin has reduced drastically. we just try to satisfy customers. We have had to increase prices because of inflation. But at the same time, we can’t increase prices ridiculously. So, at some point, we have to reduce our profit margin to make our goods affordable for our customers.

“We even had to stop selling certain goods because of the prices. When you look at the cost of getting it, and you try to add your profit and everything, eventually, it’s not worth it.”

According to a market survey recently conducted by Business Hallmark comparing the increase in food prices between 2022 and 2023, food prices have increased by as much as 30 per cent in the past one year.

Previously sold for N2,200 per kilogram, chicken now costs between N2200 and N2400. A 50 kg bag of rice that once cost N47,000 now costs N53,000, while a 50kg bag of beans that used to cost between N50,000 and N55,000 now sells for N65,000-N70,000.

Similarly, a bag of gari that once cost between N20,000 and N21,000 now sells between N28,000 and N30,000, and a mudu of flour currently costs N1,100 from N900 in 2022.

Our investigations revealed that a mudu of granulated sugar costs N1800 from N1100 in 2022, and a litre of palm oil that was once sold for N800 is now N2000.

According to investigations in some markets in Lagos and Abuja, a large basket of tomatoes costs between N8,000 and N10,000 when it is in season and between N20,000 and N40,000 when it is not.
Convenience items such as spaghetti, noodles, and bread have also increased in price. A family-sized loaf of bread is now sold for N1,200 instead of N700, while 500 grams of spaghetti that was sold for N400 in 2022 is now N650, 120 grams of noodles that was sold for N170 in 2022 currently sells for N220 and a crate of eggs goes for N3,000 from N2,200.

While the price of rice, the most consumed staple on Christmas, is unimaginably high and out of the reach of many, prices of other food items also needed for entertainment during the festive season are also high.

From tomatoes, pepper, oil, meat and to chicken, one needs good money to get these food items this season and many cannot afford them.
A kilo of chicken goes from N3,500, live chicken from N12,000, 4 litre of oil from N6,000, then rice and meat are untouchable.

Moreover, no drink is cheap again including sachet water and even as all manner of carbonated drinks fill the market, their prices are still high.

Our Investigations showed that some of the inflationary pressures were caused by banditry, insecurity and shutting down of the land borders. Although some of the land borders have been reopened, Nigerians still bear the brunt due to some other factors, such as the rising cost of transportation due to the fuel subsidy removal.

Many Nigerians spoken to by this medium have ruled out travelling because of high cost of transportation. “Yesterday I asked my son to go and make enquiry regarding traveling to Jos, I was shocked when he came back saying the fare has risen from ₦ 20000 to ₦25000”, Danzig Bulus, a soldier told Business Hallmark.

Before now, as in the past, shopping would have been at its busiest, in top gear, tailors busy, and transport companies servicing their fleet and acquiring additional ones to meet the huge demand of passengers travelling to various parts of the country for the festivities. Many tailors spoken to by Business Hallmark complained of low patronage.
Jimoh kehinde, a fashion designer at Ogba said “patronage is extremely low. As you can see we are not as busy as we ought to. People are not coming, they are complaining of no money.”

Many families are weighed down by the huge burden the harsh economy placed on them, a situation that gets worse as Christmas gets closer.
John Amadi, a business man said “Let us tell ourselves the truth, what we are witnessing under this administration is unprecedented. What is there to celebrate with the suffering in the country, Look at the fuel situation. Forget Christmas, let the year just end.”

Nigeria’s annual inflation rate rose to 28.20 per cent in November from 27.33 per cent in the previous month, the National Bureau of Statistics (NBS) said last week. The statistics office said the November 2023 headline inflation rate showed an increase of 0.87 per cent points when compared to the October 2023 headline inflation rate.

The NBS said on a year-on-year basis, the headline inflation rate was 6.73 per cent points higher compared to the rate recorded in November 2022, which was 21.47 per cent.

“This shows that the headline inflation rate (year-on-year basis) increased in November 2023 when compared to the same month in the preceding year (i.e. November 2022),” it said.

Furthermore, the bureau said on a month-on-month basis, the headline inflation rate in November 2023 was 2.09 per cent, which was 0.35 per cent higher than the rate recorded in October 2023 (1.73 per cent).

According to the report, the food inflation rate in November 2023 quickened to 32.84 per cent on a year-on-year basis, which was 8.72 per cent points higher compared to the rate recorded in November 2022 (24.13 per cent ).

In recent years, food prices have been on the rise across Nigeria. The situation deteriorated due to the impact of government policies such as the removal of subsidies on petrol, among others.

In July, President Tinubu declared an immediate State of Emergency on food insecurity to tackle the increase in food prices. He also directed that “all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”

The report said the percentage change in the average CPI for the twelve months ending November 2023 over the average of the CPI for the previous twelve-month period was 24.01 per cent, showing a 5.64 per cent increase compared to 18.37 per cent recorded in November 2022.