Business
No Christmas for Nigerians! Inflation dampens Yuletide mood
Skyrocketing prices of basic food stuffs and other commodities have conspired to make this year’s Christmas that is less than two weeks away and New Year celebrations look like a mockery of the joy of the season when families come together to celebrate. Although at this time last year, it looked like the world had come to an end, but compared to the present, 2023 Christmas now would go for paradise of sort.
As the 2024 festive season beckons, many Nigerians have already accepted their fate as the prospects of lavish celebration characteristic of past Christmas celebrations recede gradually into memories, and they are bracing for a subdued Christmas amid skyrocketing prices of essential goods and services. Inflation continues to soar, eroding not only the confidence of the people but also household incomes, leaving millions unable to afford traditional holiday celebrations.
Business Hallmark’s investigations have revealed the startling fact of food, transportation, and even basic commodities being beyond the reach of many families, casting a shadow over what is typically a season of joy and celebration.
While most people blame it on artificial increases orchestrated by Nigerians, who like to exploit and fuel any small situation for pecuniary gains, others disagree, saying things are simply costly, even arguing that purchasing power of most Nigerians declines on a daily basis. Most people spoken to heaped the blame on the economic policies of the current administration, namely, the removal of the subsidy on fuel, and the floating of the Naira.
Dr. Olufemi Omoyele, an economic analyst, told Business Hallmark that, “Despite different interventions and efforts by the President Bola Tinubu administration to improve the situation, prices of foods, such as yam, beans, rice, (both local and foreign), fish are still beyond the reach of many, and now it is becoming worrisome. The problem has to do with macro outlook of the economy, both fiscal and monetary.”
This reporter, who went round Lagos metropolis:. Oshodi, Mile 12, Ile Epo, Abule Egba and Yaba witnessed low patronage being experienced by traders and sellers alike. While some merely displayed wares and food items and left their spaces, others were seen desperately calling and hustling for customers.
Though a trickle of buyers still managed to make purchases, Ihechukwu Martin, who owns a big boutique at Tejuoso market, Yaba told this medium that “as you can see sale is slow, I cannot blame our customers, things are hard. People that used to buy before without haggling price now do so. This economy has created problems. Government is behind this suffering.”
Ahmed Abdullah, who sells yams and tomatoes along the barbed wires of the rails at Yaba, said “Walahai, things are difficult. It was not like this when (president) Buhari was there. People just come and look and go without buying once I mention price. Since morning now I have only sold ten tuber of yams, before I would have sold 40.”
This reporter also noticed that despite the availability of clothes, hampers, wears, and other household items in markets, prices are still on the high side, and have pushed would-be buyers further away as seen in Martin’s complaints.
Not only that, the shopping spree, which many Nigerians are known for whenever the Christmas season comes, has decreased, and families and well-wishers, who love to shop, are now doing so on a low key.
While inflation rate in Nigeria increased to 33.88 percent in October, from 32.70 per cent in September of 2024, the prices of specific products, especially agricultural, such as rice, groundnut oil, tomatoes, and onions etc, increased by more than 100 per cent over the last one year.
For example, a bag of rice, a staple during festive celebrations, now sells for an average of N107,000, up from N50,000 in 2023. The price of a 5-liter groundnut oil, which sold for N6,000 a year ago now sells for N19,000. Similarly, the price of cooking gas has doubled over the past one year in some regions, making it difficult for families to prepare traditional holiday meals. But despite minimum wage increases by the federal government and some states, incomes have been eroded by marauding inflation, which some economists have categorised as hyper.
Given the growing cost of living and stagnant income for most Nigerians, the World Bank has projected that the number of persons living in poverty will increase from 87.5 million in 2023 to 104 million in 2024, an addition of 17 million.
For many everyday Nigerians, these economic pressures have reshaped holiday plans. Ayo Bamidele, a civil servant, explained that his family would stay in Lagos this Christmas instead of traveling to their hometown in Kogi State due to financial constraints.
“The most important thing is to make sure the children are happy,” he said, emphasizing the need to prioritize basic family needs over traditional holiday expenses.
Traders are the ones feeling the pinch most. At markets like Wuse in Abuja and Balogun in Lagos, vendors report low sales despite large crowds. Mrs. Alice Famodu, a seller at Iyana Iba Market in Lagos lamented, “Things are very costly, and there is no money in circulation. When there is money, people will come and patronize us, but now we just wait.”
In past years, markets across Lagos would be bustling with shoppers hunting for festive bargains two weeks before Christmas, but in 2024, the mood is somber. Soaring inflation has drained the holiday spirit, leaving many Nigerians struggling to celebrate the season.
The outlook remains grim, with many Nigerians expressing concern about how they will manage through the holiday season. Experts warned that without significant economic reforms and support for vulnerable populations, the current inflationary trends could worsen, leaving even more families struggling to make ends meet.
Development economist at Adeleke University, Professor Tayo Bello, acquiesced that Nigerians are being impoverished because of the pervading inflationary pressure. For many Nigerians, the rising cost of living has forced them to make difficult choices.
“This year, we can’t afford to travel to the village for Christmas,” said Joseph Boroh, a newly retired civil servant in Abuja. “We have to prioritize school fees and rent over festivities. Even buying a chicken for Christmas dinner feels like a luxury now.”
At Oshodi food market (Arena), it was observed that some markets vendors sit idly, watching potential customers walk by without buying.
“I have been here since morning, and I’ve only sold a few cups of rice,” said Chinyere Okonkwo, a trader, who has been selling foodstuffs for over a decade. “Last year, people bought bags of rice and cartons of oil. This year, they ask for prices and walk away. Everything is just too expensive,” she said.
Economists attributed the current situation to a combination of factors, including high transportation costs due to fuel price increases, the depreciation of the naira, and lingering supply chain disruptions.
“Nigeria is facing a cost-of-living crisis exacerbated by structural economic issues,” said Dr. Omotola Abimbola, a macroeconomic analyst. “Without targeted government intervention, many households will continue to struggle, especially during the holiday season.”
“We used to travel to our hometown in Osun State every December,” said Bayo Adeyemi, a taxi driver. “But fuel prices are so high now, and I can’t afford the transport fare for my family of five. We’ll be staying in Lagos this year, and I don’t even know how we will manage to buy chicken for Christmas.”
Even small luxuries like Christmas decorations have become out of reach for many families. In Lagos, Adebanjo Nike, fashion designer, told Business Hallmark, that fewer customers are placing holiday orders. “People used to rush to make clothes for Christmas, but now they say they don’t have the money. I’ve only sewn five dresses this month, compared to 20 last year.”
Many Nigerians, already living on tight budgets, are now cutting back on festive spending. “We used to buy new clothes for the children and cook plenty of food for visitors,” said Beatrice Nwankwo, a mother of three in Abule Egba. “This year, we can only afford the basics – maybe rice and stew if we’re lucky.”
The economic downturn has affected not just individuals but also businesses. Many companies have canceled Christmas bonuses and holiday parties, leaving employees disappointed.
“We used to get a bag of rice and some money as a bonus,” said Nkechi Udo, a secretary at a small firm in Lagos. “This year, ‘Oga’ said there’s no money. It’s sad because we were counting on that extra income.”
Despite the hardships, some Nigerians are determined to find joy in the season. “Christmas is about family and gratitude,” said Maryam Ibrahim, a schoolteacher in Lagos. “We may not have much, but we’ll gather, pray, and be thankful for life. It’s a tough year, but we have hope.”
Hope, however, is in short supply for many, who feel abandoned by the government.
Economists suggested that without significant intervention, such as subsidies on essential goods or support for small businesses, the situation may worsen in the coming months. “The government needs to step in with policies to stabilize prices and increase purchasing power,” said Dr. Omotola Abimbola, a macroeconomic analyst. “Otherwise, we risk pushing more Nigerians into poverty.”
For now, the millions of other Nigerians are preparing for a Christmas focused not on abundance, but on survival. As Bayo Adeyemi puts it, “This year, we’re not thinking about celebration. We just want to survive and hope for a better 2025.”