For tens of millions of households within the nation, the festive season has come at a time when the inflationary strain is intensifying.
And Nigerians are going to be spending extra shopping for rice – a key staple within the nation.
Based on the report launched by the Nationwide Bureau of Statistics (NBS) on Monday, Nigeria’s inflation charge rose to 34.6 % in November 2024, up from 33.88 % in October, pushed by excessive meals prices.
Meals inflation surged to 39.93 % in November 2024, a pointy enhance from 32.84 % in November 2023.
A 50kg of native parboiled rice has risen by 66 % to a mean of N100, 000 in December 2024 from N60,000 in December 2023, in accordance with BusinessDay’s market survey.
In a rustic the place the minimal wage charge is N70,000, which is under $50 per 30 days, the ballooning meals costs have left many Nigerians stranded this Christmas as excessive gasoline and meals costs strain their budgets amid a worsening naira shortage.
“How do I afford to purchase a bag of rice for N100,000 after I earn solely N100,000 ? What is going to I’ve left to feed my kids and for our repairs,” Bola Ademosu, a instructor who was at Ketu Market to make purchases, stated.
“We’ve got been managing our lives, however how far can we go along with the way in which costs are surging?” Ademosu requested.
Learn additionally: Imported rice worth jumps by 114% as FG delays duty-free meals coverage
Pay is failing to maintain tempo with inflation in Africa’s largest economic system, with civil servants and low-income households largely hit by inflation.
This has amplified a cost-of-living disaster that’s hurting residents’ bodily and psychological well being and exacerbating present poor well being situations, in accordance with consultants.
“It has been a tough 12 months for a mean Nigerian who has always contended with surging meals costs,” AfricanFarmer Mogaji, chief government officer of X-Ray Consulting, instructed BusinessDay.
“Rice is a significant staple for tens of millions of Nigerian households and you may think about shopping for a bag for N100,000 in a rustic the place the minimal wage is N70,000,” he defined.
Meals reminiscent of jollof rice, which is a standard characteristic on the Christmas menu, will price a Nigerian 5.1 % extra. The typical price of making ready a pot of jollof rice, a preferred Nigerian delicacy for a household of 5 is N21,300, in accordance with the newest Jollof Index report.
Money Shortage Bites
Aside from the excessive price of rice, Nigerians who rely closely on money for his or her transactions are dealing with important challenges this Christmas because the nation continues to grapple with an ongoing money scarcity.
Regardless of a considerable enhance within the quantity of foreign money in circulation and the quantity of money held exterior the banking system, the demand for bodily money stays excessive throughout the nation.
“I now patronise distributors which are prepared to just accept financial institution transfers as a method of cost for items and providers, as getting money to spend is changing into actually tough,” Tayo Odebulu, a workers member of the Nationwide Hospital, instructed BusinessDay on Monday.
Odebulu stated she has not been in a position to withdraw money from POS brokers as a result of money crunch.
Talking with BusinessDay, a POS agent who operates within the Central Enterprise Space, Abuja, and recognized himself as Usman, defined that making financial institution withdrawals has been tough prior to now week. He acknowledged that banks are unwilling to disburse money to them, blaming it on unavailability of money.
“I’ve not opened my enterprise for some days as a result of I couldn’t get money. On the banks, I may solely withdraw N20,000. Doing this enterprise is changing into tough and this is the reason I needed to enhance the cost. If you’d like N5,000, you’ll pay N300 cost,” he stated.
Learn additionally: Excessive meals costs push inflation to 34.6%, 28-year excessive
In a chat with BusinessDay, a workers member of a Tier-1 financial institution, who pleaded anonymity, stated: “There isn’t any money within the financial institution for now. Even clients that are available right here for withdrawals barely get sufficient money. However we’re hopeful that this can be resolved quickly.”
Analysts attribute the excessive money demand to the surge in financial actions sometimes seen through the yuletide season.
Ayokunle Olubunmi, head of monetary establishment rankings at Agusto Consulting, famous that the festive season normally brings a spike in transactions, with many Nigerians buying items, travelling, and making ready for Christmas. This seasonal enhance in demand is anticipated and typical, he stated.
Olubunmi additional defined that each the Central Financial institution of Nigeria (CBN) and deposit cash banks (DMBs) normally anticipate this surge in money demand and plan accordingly. Nonetheless, he identified that the CBN will not be printing sufficient foreign money to fulfill the demand, largely resulting from its efforts to chop prices.
He additionally famous that the central financial institution is actively selling using digital channels and a cashless coverage, which is meant to cut back dependence on bodily money.
On the problem of money hoarding, Olubunmi argued that if there have been enough money in circulation, there can be no want for people to stockpile cash.
Ayodeji Ebo, managing director/CBO at Optimus by Afrinvest, stated enterprise actions sometimes enhance through the vacation interval, additional driving up the demand for money. He additionally noticed a major shift from conventional financial institution withdrawals to using Level of Sale (PoS) terminals as a result of comfort they provide.