Nigerians bemoan exorbitant cost of living as inflation reaches record high

Nigeria’s cost of living crisis is heaping misery on the citizens with inflation soaring amidst failing efforts by the monetary and fiscal authorities to stabilise the national currency’s exchange value and to review workers’ wages.

Rising prices have taken many essential items, including food and housing, beyond the reach of millions of citizens across the country, as highlighted by a PREMIUM TIMES’ market survey in Minna, Niger State.

Record Inflation

In April, Nigeria’s inflation rate surged to 33.69 per cent, according to the National Bureau of Statistics (NBS) marking the 11th consecutive increase on President Bola Tinubu’s watch. The 0.49 per cent increase over the figure recorded in March is the highest since 1999 and the fourth-highest since Q1 1996.

Year-on-year, the rate jumped by 11.47 per cent compared to April 2023, while month-on-month, April 2024 saw a 2.29 per cent increase, slightly lower than March’s 3.02 per cent.

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 experiencing the highest rates, and Nasarawa, Adamawa, and Bauchi seeing slower increases.

Urban inflation reached 36.00 per cent, while rural inflation stood at 31.64 per cent in April.

Food prices in Minna

A PREMIUM TIMES’ market survey in Minna, Niger State indicated a continuing nearly daily rise in food prices.

A “mudu” (bowl measure) of rice, which cost N1,200 last month, was selling at N1,900 when our reporter visited the central market in the state capital on Monday. Similarly, the same quantity of beans sold for N1,700, with traders noting that the price was N800 last month.

Millet has also experienced a substantial hike in price, from N350 to N900-N950 per mudu and N48,000 per bag over the month.

The prices of palm oil, groundnut oil, garri, maize and sugar have all seen significant increases within the period, underscoring the economic challenges facing the residents of Minna.

Residents decry rising prices

Halima Abubakar, a classroom teacher in Minna, said her salary no longer covers her basic needs.

“A teacher’s salary is so small that it doesn’t cover one’s needs,” she lamented. She said she has been affected most by the rising food prices.

“Sometimes the prices of food items change twice in a day,” she lamented.

Leonard Ogwezi, a building materials dealer in the city, said rising prices had left him unable to replenish his stock.

“Inconsistency in prices causes losses in business,” he said. “I normally buy three bags of nails, but now it’s two.”

A civil servant in the state, Abubakar Kuta, said his living standards have fallen. “We buy 10 measures of rice for N7,000 or less, but now the same quantity costs as much as N23,000.”

Mr Kuta said he used to visit his hometown every weekend but has now reduced his visits to twice a month “due to high transportation costs.”

Nigerian workers struggling

Workers across Nigeria are angry that wages have remained static despite the hyper-inflationary trend, with the government and labour yet to agree on a new national minimum wage.

Evans Emmanuel, a Facebook user, expressed his exasperation on the situation, saying: “I read yesterday that inflation in Nigeria is at a massive 33.69%, and the Federal government is offering 48,000 Naira per month minimum wage to their workers.

“I had thought the first people you should be concerned with should be your own workers. Other institutions in the private sector had at that time reviewed upward their staff remuneration except the very government that caused the hardship through that off-hand policy.”

Other Nigerians are also groaning. “As a student, the price changes have hit hard,” Eniola Brown, a student at the University of Ilorin, Kwara State, lamented. “What used to cost N150 now demands N300, doubling my daily expenses, including transport and other things.”

Miss Brown, who is also an entrepreneur, said inflation has affected her sales. “Low sales plague my business,” she said in a Facebook post. “Customers demand refunds due to sudden price hikes caused by currency fluctuations.”

She said the economic squeeze has forced her to reassess her lifestyle. “Luxuries are a thing of the past, I’m cautious with spending, prioritising essentials over indulgences.”

Food crisis threatens millions across Africa

Recent findings by the Cadre Harmonisé (CH) report, a collaborative effort involving the International Rescue Committee (IRC) and other international organisations, depict a grim scenario for millions across West and Central Africa.

Noting that 52 million people face the risk of food insecurity during the upcoming lean season from June to August, the report called for urgent action to avert catastrophic consequences.

A particular concern cited by the report on Nigeria is where it said 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 the northern states of Sokoto and Zamfara, where over 15 per cent of children endure acute malnutrition.

This looming crisis stems from a confluence of factors including insecurity, climate change and deteriorating macroeconomic conditions.

Inflation rates, which soared to 21 per cent across the region in January 2024, have also compounded the challenges, pushing essential goods beyond the reach of many.

Expert calls for economic diversification

Samuel Nzekwe, a former president of the Association of National Accountants of Nigeria (ANAN) said Nigeria needs to “diversify the economy and cultivate an environment conducive to the growth of crucial sectors.”

Mr Nzekwe, who spoke at a gathering of accountants in Ota, Ogun State, earlier this year, said it is a practical means of combatting the inflationary trend.

“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.”

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“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 the upward trajectory of inflation and stabilise the Naira, the nation must focus on cultivating other areas where it possesses a competitive advantage.”