Six months into the administration of President Bola Tinubu, the cost of living in Nigeria has experienced a significant and alarming rise. President Tinubu’s removal of the subsidy has exacerbated the existing hardship for many Nigerians, leading to increased challenges in their daily lives. According to the World Bank, the poverty rate in Nigeria surged to 46 percent in 2023, affecting 104 million individuals.
Inflation rates also witnessed a sharp increase, reaching 27.33% in October 2023 and 28.20% in November, as reported by the National Bureau of Statistics (NBS). This inflation had a substantial impact on household spending. The rise in food inflation on a year-on-year basis was attributed to increases in the prices of various food items, including oil and fat, bread and cereals, fish, potatoes, yam, fruits, meat, vegetables, milk, cheese, and eggs.
A review of foodstuff prices in Nigeria by DAILY POST in January revealed soaring costs. For instance, a 50kg bag of rice ranged from N45,000 to N60,000, while beans cost between N60,000 and N70,000 for a similar quantity. Yam prices varied from N800 to N3000 per tuber. Noodle prices, depending on the brand and size, ranged from N7000 to N9000. Garri, a staple made from cassava, was sold between N30,000 and N40,000 per 50kg bag. Potatoes in a 25kg bag cost between N6,000 and N9,000, and a 12-pack of spaghetti was priced at N13,000.
These surges in food commodity prices have raised serious concerns among Nigerians. Despite assurances from President Tinubu and his team regarding their capability to address the situation, many citizens feel that the expected improvements are taking longer than anticipated.
Residents expressed their concerns, linking the rising cost of petrol to the challenges faced by the masses. Some suggested that a review of the minimum wage for civil servants should be considered. Others emphasized that addressing insecurity is crucial, especially ensuring farmers can work without fear, facilitating the transportation of produce from farms to markets.
Mr. Abdul Sani expressed frustration, stating that he doesn’t see any hope, and the continuous rise of the dollar is contributing to escalating prices of essential goods. Some voiced skepticism about the effectiveness of government interventions, citing corruption as a hindrance.
Economic expert Dr. Ayo Teriba emphasized the need to stabilize the foreign exchange market to promote economic growth and competitiveness. He highlighted the negative impact of exchange rate volatility on business decisions, inflation, and living standards. Teriba suggested that addressing the exchange rate volatility is crucial for achieving sustainable growth and mitigating the adverse effects of reforms on living costs.
While acknowledging the challenges, he noted that the direction of the 2024 budget indicates that the government is making adequate provisions to address the impact of its reforms on living costs.
