Nigerian Consumers At Breaking Point As Cost of Living Becomes Unbearable
As Nigeria faces one of its most challenging economic periods, it is becoming increasingly unbearable for the average consumer.
With inflation at historic highs, the devaluation of the naira, the removal of fuel subsidies, and skyrocketing prices across the board, many Nigerians are finding it almost impossible to survive.
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The purchasing power of consumers has eroded so drastically that families are being forced to make impossible choices, and millions of households are now struggling to meet their most basic needs.
Mr. Amos Ifeduba, during a parley with Daily Independent said, “The economic situation in Nigeria has reached a point where it is no longer just about struggling to make ends meet, it is about mere survival”.
To corroborate Ifeduba’s take on the issue, Daily Independent reports: “According to the National Bureau of Statistics (NBS), inflation surged to an alarming 26.7% in September 2024, up from 20.77% in the same period last year.
This rapid rise in inflation is being driven by the skyrocketing cost of food and essential commodities.
In particular, food inflation has risen by 31.5%, making it difficult for the average Nigerian to put food on the table.
“Staple foods like rice, beans, and vegetable oil, once affordable for most families, have now become luxuries that few can afford. The average price of rice has shot up to over ₦50,000 per 50kg bag, a steep rise from ₦30,000 just a year ago. Similarly, cooking oil has seen a price hike of 70%, while beans and other essential ingredients have become unaffordable for millions”.
Without a doubt, this inflationary pressure is compounded by the removal of fuel subsidies.
Fuel prices have now risen to about ₦1,O71 per liter, a significant increase that has had a cascading effect on the prices of goods and services.
Transportation costs have spiked, and this has in turn increased the prices of almost every product, from food to clothing to healthcare.
For many Nigerians, the high cost of transportation means they are no longer able to commute to work or school regularly, further limiting their economic opportunities.
With the N70, 000 recently approved minimum wage, even as a huge population of Nigerian workers may likely not earn the minimum wage, not a few Nigerians are finding it increasingly difficult to make ends meet.
In Lagos, Abuja, and other major cities, the average cost of living has outpaced wage growth by miles, and the gap between income and expenses has widened considerably.
A recent survey by the World Bank found that over 60% of Nigerians are living below the poverty line.
This number represents millions of Nigerians who now lack the means to afford even basic goods and services, let alone discretionary items.
The impact on everyday consumers is stark. A typical household is now spending a larger portion of its income on food, leaving little room for other necessities like education, healthcare, and housing.
For many, food prices have risen to a level where they now account for 80% or more of monthly expenses. With prices rising at such a pace, and wages stagnant, Nigerians are now sacrificing even the most basic needs, such as clothing, healthcare, and education, in order to afford the bare essentials.
The frustration of Nigerian consumers is palpable, and their voices echo across the country. During a recent market survey in Ogba, Lagos, Iya Wale, a trader, shared her frustration:
“Everything don dear, no be small. Dem talk say rice, ewa, and agbado go cheap if we vote for them, but today, we nor fit buy them for market. How person go chop when everything cost like this? Dem no dey feel us for government.”
At Mowe, in Ogun State, Mr. Kenneth Ndimele, a civil servant, expressed his despair: “I can’t even explain how things have changed. My salary is still the same, but food prices have doubled. My children’s school fees are overdue, and I’m borrowing money to survive. With the high cost of transport, I’m not sure how long I can keep up with this life.”
Similarly, Kemi Arokola, a single mother of three in Surulere, Lagos, said: “I used stock rice worth ₦30,000, but now I have stepped up the stock to ₦50,000 as the quantity have reduced due to the current sales price of a bag of rice that now revolves around N90,000 or above; depending on the brand. How am I supposed to feed my kids? They are now skipping meals, and every day I worry about where the next meal will come from. It breaks my heart to see them suffer.”
For these consumers, the pressure is relentless, and each day is a struggle. But it is not just the poorest Nigerians who are feeling the impact, middle-class families are also being squeezed out of the economy.
The once-stable middle class is now in jeopardy, as rising costs and stagnant wages push families into economic hardship.
A report from the African Development Bank (AfDB) reveals that over 70% of middle-class Nigerians have been forced to cut back on discretionary spending, even on items like healthcare and education. Many have had to dip into their savings, or worse, take on debt just to survive.
The crisis is so severe that middle-class families are now facing the reality of making hard choices that were once unimaginable.
Mr. Ben Nnamdi, an economist, commented: “What we’re seeing now is an economy that is fundamentally unsustainable for the average Nigerian consumer. The rise in inflation, the devaluation of the naira, and the stagnation of wages are eroding the quality of life for millions. Even those who were once considered financially stable are now feeling the pinch.”
In response to the crisis, the government has introduced various palliative measures, such as cash transfers to vulnerable households.
However, these efforts are widely seen as inadequate. The ₦8,000 cash transfer, which is meant to support the poorest Nigerians, is simply not enough to offset the rising costs of living.
A family that spends upwards of ₦20,000per week on food alone will find ₦8,000 to be a drop in the ocean.
Consumer rights advocate, Mrs. Yetunde Akinyemi, criticised the government’s approach, stating: “While the cash transfers are well-intentioned, they fail to address the underlying issues that are causing the economic hardship in the first place.
Inflation, fuel costs, and the naira’s depreciation are the real culprits, and unless we address these issues directly, the situation will only continue to worsen.”
The government has promised reforms and policies to address the challenges facing Nigerians, but so far, many remain skeptical about whether these promises will be fulfilled.
The sheer scale of the problem calls for immediate, large-scale intervention to bring relief to struggling consumers.
The crisis facing Nigerian consumers is not just about rising prices, it is about an economy that has failed to provide for its people.
As experts point out, a comprehensive economic reform agenda is urgently needed to address inflation, stabilise the naira, and create more sustainable income sources for households. Until these issues are tackled head-on, the pain for consumers will only intensify.
Nigerian consumers are at a breaking point. With every passing day, the economic burden grows heavier.
The need for immediate and meaningful government action has never been more urgent. Without bold, sustained reforms to address the root causes of the crisis, Nigeria faces the very real risk of deepening poverty, widespread hunger, and social unrest.
Mrs. Evelyn Otokiti, a consumer enthusiast in her reaction said: “The government must act now to stabilise the economy, ease the burden on consumers, and restore hope for millions of Nigerians who are teetering on the brink of despair. If not, the consequences will be dire, not just for the consumers but for the entire nation.
