BY AWELE OGBOGU
A recurring hike in the price of petrol appears to be a way of testing the staying power of the people because each time the masses seem to be adjusting to the last increment, sooner than later comes further increase in cost of the product, with transportation and feeding being instant casualties.
With N1, 000 per litre of petrol at NNPC stations, a third increase just under two months, the APC government still goes to sleep each night with two eyes closed, making many to fear that hunger may have become a national policy, covertly deployed by a regime that appears to be at war with the very people upon whom it attributes its mandate to govern.
Tragically, there are no remedies to tame the worsening economic situation in the country but a common sense that should put a stop to what many call the madness in the oil and gas sector and the leadership style of the APC government.
The Pointer felt the pulses of mainly traders and transporters as Nigerians bemoaned the exorbitant cost of living, including transportation. Many who spoke were unanimous in saying that the Federal Government is to blame over its inflexibility on the root causes of hunger, such as rising inflation, exchange rate volatility and petrol price fluctuation. “But patience is not a very good strategy if you want to survive and not die due to ever rising cost of living”, observed a respondent who added that “the president is telling us to be patient until starvation and want begin to send the electorate to their early graves.” Inflation has reached record high levels and the government still manages to jerk up petrol prices. Rising prices have taken many essential items, including food and housing, beyond the reach of millions of citizens across Nigeria, as highlighted in the market survey.
Now generally referred to as the “cost of living crisis”, it is heaping misery on the citizens with inflation soaring amidst failing efforts by the nation’s monetary and fiscal authorities to stabilise the national currency’s exchange value and to review workers’ wages. Inflation rate surged to 33.69 per cent in Q1, according to the National Bureau of Statistics (NBS), marking the 11th consecutive increase under President Bola Tinubu’s watch. The 0.49 per cent increase in recent times was the highest since 1999 and the fourth highest since Q1 of 1996. Year-on-year, the rate jumped by 11.47 per cent compared to 2023 figures, while month-on-month, it came close to surpassing single digits. The surge was driven by rising prices of food, non-alcoholic beverages, housing, utilities, clothing and transportation. Food inflation in March hit 40.53 per cent, with Kogi, Kwara and Ondo states experiencing the highest rates and Nasarawa, Adamawa and Bauchi seeing slower but still worrisome increases. Urban inflation reached 36.00 per cent, while rural inflation stood at 31.64 per cent, as at the last check.
A bowl of rice, which cost N1, 200 last month, was selling at N1, 900 when our reporter visited the market. Similarly, the same quantity of beans sold for N1, 700, with traders noting that the price was N800 last month. The prices of palm oil, groundnut oil, garri, maize and sugar have all seen significant increases within the period, underscoring the growing exposure to hunger.
Helen Osamor, a primary school teacher in Asaba said Tinubu’s body language anytime there is an increase in the price of petrol, which is more often than not, shows that he is complicit in the entire scheme, adding that he gave workers a new Minimum Wage with one hand but took it away with another, while attempting to use the so-called free market led by NNPC to insulate himself from blame.
A building materials dealer in the Delta State capital, Chief Leonard Ogwezy, said prices are rising as transport fares soar over constant fuel hike, adding that this has left him unable to replenish stock. “Inconsistency in prices causes losses in business,” he said. “I normally buy three bags of nails, but now it’s one or two.” A federal civil servant in the state, Abubakar Kuta, said his living standards have fallen. “We used to buy 10 rice for N7, 000 or less, but now the same quantity costs as much as N23,000.” Kuta said he used to visit his hometown every weekend but that is now a thing of the past due to high cost of transportation
Meanwhile, Osamor is one of thousands of workers across Nigeria who are angry that a New Minimum Wage is being quickly followed by a potential worsening of the hyper-inflationary trend due to the latest petrol hike. Evans Emmanuel, a Facebook user, expressed his exasperation at the situation, saying: “I read yesterday that inflation in Nigeria had been hovering around record double digit levels, while the Federal Government merely offered N70, 000 as minimum wage for workers. “I had thought the first people you should be concerned with should be your own workers unlike the private sector which has a way of rewarding performance” he said, adding that “regrettably, many in the OPS may not be able to cater to staff welfare or to retain workers due to the APC government’s off-hand policies.”
A student of Federal College of Education (Technical), Asaba, Eniola Brown, lamented that “items that used to cost N150 now goes for as much as N300, doubling my daily expenses, including transport and basic needs.” Miss Brown said inflation has affected their lives on campus. She said the economic squeeze has forced her to re-assess her lifestyle. “Luxuries are a thing of the past, I’m cautious with spending, prioritising essentials over indulgences.”
A particular concern cited by a recent report on Nigeria is that 31.8 million people, constituting 16 per cent of the analysed population are at the risk of hunger and malnutrition. The situation is further exacerbated in parts of the country where many have virtually stopped going to farms, meaning that millions are currently enduring acute malnutrition, with few cash chasing far fewer supplies to the markets.
Eniola observed that “it is a looming crisis that stems from a confluence of factors, including insecurity, climate change and deteriorating macro-economic conditions by the president. Inflation has also compounded our ability to even eat as essential goods cannot be bought any longer by those who need them.
An expert, Samuel Nzekwe, a former president of the Association of National Accountants of Nigeria (ANAN), who made his take on the issue known online said “diversifying the economy and cultivating an environment conducive to the growth of crucial sectors is the way out.” “Reducing our reliance on oil and broadening the scope of our economy would enable the productive sector to thrive, thereby curbing inflation and alleviating pressure on our currency. “With sufficient security measures in place, food production could increase, potentially, leading to exports and earning foreign exchange, consequently significantly reducing the nation’s inflation rate.
“To slow down the dangerous trajectory of inflation and stabilise the Naira, the nation must focus on cultivating other areas where it possesses a competitive advantage.”
For a long time now, Nigeria has faced economic challenges, including a surge in the dollar exchange rate, leading to a significant increase in the cost of living for its citizens. “Navigating through these tough times requires resilience, strategic planning and informed decision-making”.
Eniola proposed “practical tips and strategies to help survive the high cost of living in Nigeria today, such as “creating a detailed budget that outlines one’s monthly income and expenses. Identify areas where you can cut cost without compromising essential needs. Prioritize spending on necessities like food, rent and utilities and minimize discretionary spending on non-essential items.
“Diversify income streams, explore additional ways to generate income. Consider freelancing, part-time jobs, or starting a small business. Diversifying your income streams can provide a financial safety net and help you cope with economic uncertainties. Be a savvy shopper by comparing prices before making purchases. Look out for discounts, sales and promos. Consider buying in bulk for items with a longer shelf life. Additionally, re-assess your lifestyle choices and prioritize needs over wants to reduce unnecessary expenses.
“Investing in your skills and education can enhance your marketability and potentially lead to better job opportunities or higher income. Look for affordable online courses or workshops that align with your career goals and personal interests.” She also said that “with the rising cost of utilities, consider adopting energy-efficient practices at home. Use energy-saving appliances, turn off lights and electronics when not in use and explore alternative energy sources to reduce electricity bills.
“Build and maintain an emergency fund for unexpected expenses. Having a financial cushion can provide peace of mind and help you navigate through unforeseen circumstances without accumulating debt. Prioritize your health to avoid hefty medical bills. Adopt a healthy lifestyle, exercise regularly and consider preventative measures. Take advantage of free or low-cost health screenings offered by community clinics. Again, buy your food in bulk”, noting that “a typical Nigerian spends almost half of his/her income on food, so lots of money can be saved if you can cut expenses in this regard. Make sure you pay attention to the prices of goods and choose the family-size package if it is cheaper per unit. For example, church members and staff of organizations can pool resources towards making a bulk purchase. Afterwards, the food will be divided according to the contributions made.”
Indeed, it could be surmised that surviving the high cost of living in Nigeria requires a combination of financial prudence, adaptability and community support. By implementing these practical tips and maintaining a positive mindset, you can navigate through challenging economic times and work towards a more secure and stable financial future.
The rising cost of living in Nigeria is making a bad situation worse as it is negatively impacting the workers’ productivity in Africa’s most populous nation. Home to the largest youth population globally, it has experienced two recessions in the past eight years that have weakened consumers’ purchasing power and thrown millions into poverty.
According to the International Labour Organisation, labour productivity is an important economic indicator that is closely linked to economic growth, competitiveness, and living standards within an economy, but productivity in terms of GDP per hour worked was $7 last year, lower than its African peers such as Gabon ($26), Botswana ($21) South Africa ($21), Egypt ($20) and Algeria ($19).
“Nigerians are resilient people. However, environmental and economic challenges impact our productivity. In the past year, the cost of living and electricity has skyrocketed, affecting overall well-being and ability to work”, Ogugua Belonwu, founder and chief executive officer at MyJobMag. He said Nigerian workers striving to make ends meet are often forced to take on multiple jobs, which affects their ability to deliver on both jobs.
“The resulting economic uncertainties in the country, not only disrupt their peace of mind but also significantly reduce their productivity. As people begin to lose faith in the country, we have people working solely to raise money to travel to other countries, which negatively affects their work mindset.”
Femi Egbesola, national president of the Association of Small Business Owners of Nigeria, said, “the productivity of the Nigerians in the business space and Nigerians in their personal space as citizens have dropped considerably. For productivity, you need some indices in place to be well productive which enables productivity.” He said one of such indices is an enabling environment. “We have myriads of challenges and they are coming back-to-back from removal of petrol subsidy to issue of foreign exchange, high inflation, increase in interest rate electricity tariff and introduction of new taxes.” Egbesola added that the challenges are reflecting on productivity leading to businesses shutting down from small and medium, to large ones.
Temitope Omosuyi, investment strategy manager at Afrinvest Limited, said Nigerians are typically not very productive as the labour force daily contends with inadequate power supply, sub-optimal Internet access, insecurity, and macro-economic instability. “This consistently impairs their living standard and in turn, their motivation to deliver the highest productivity in terms of quality and quantity. It reflects Nigeria’s unimpressive GDP growth and an extremely low GDP per hour worked (productivity) of $7.0 compared to a global average of $26 in 2023,” he added. A recent productivity index by Penn World Table (PWT), a set of national accounts data developed by scholars at the University of California, shows that Nigeria’s population is the fourth least productive country in Africa.
“When people are in poverty, it will affect productivity, nutrition, health and emotions. All these things have a way of impacting productivity on employees and people in business.” Inflation rate in Nigeria has accelerated to a record high, largely on the back of federal government reforms, including the removal of petrol subsidy and naira devaluation.
Apart from poverty and inflation, Nigeria’s unemployment rate rose for the second time in the third quarter of last year since the National Bureau of Statistics (NBS) adopted a new methodology for the country’s labour force. The survey said the unemployment rate rose to 5.0 percent from 4.2 percent in Q2. It stood at 4.1 percent in Q1, down from 5.3 percent in Q4 of 2022.
A public Affairs analyst who wanted to be identified simply as Akingbohungbe, said in a democratic government like Nigeria, the dividend of democracy needs to be distributed to the people. But Jennifer Oyelade, director of Transquisite Consulting, said Nigerians are becoming more productive to survive. “They have no choice but to think outside the box in terms of adding additional revenue to be able to survive. They are being more strategic about the work that they do and trying to leverage on the skills whether technical or skills of passion to generate another stream of income,” she added.
In the meantime, the cry for help is deafening! Osamor said it does not need to take the last breath before action is taken. “After the outcry, we don’t know what will happen next? She equally asked: “even if the president succeeds in turning the entire nation into a patient dog, is there no contingency plan to save it from an endless wait for sustenance?, saying that “they never told us we had to starve before their electioneering promises would come to fruition.”
Eniola therefore reiterated the plea of many that Mr. President, if not anything else, should do something quickly about the cost of petrol. “If anyone is deriving pleasure from increasing the cost of petrol, they should seek another pastime”, she said.
