Nigerians are looking for unique ways to cope with rising costs of goods and services, which has severely eroded their purchasing power.
Coping mechanisms are essential to overcome the increasing difficulties synonymous with rapidly expanding inflation. Nigeria’s recent inflation report shows that the country is still plagued by double-digit inflation, which means that prices have risen sharply compared to when the economy was swallowed up by panic buying, border closures and blockade restrictions last year. When economists scramble to find a solution, citizens can only figure out their way of survival.
Unlike other macroeconomic phenomena, inflation does not discriminate, and its impact is distributed to everyone in the economy. Although few people can absorb this influence, most Nigerians would consider this a painful blow because the country is still the poorest capital of the world.
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Nigeria’s inflation rate fell from 17.93% in the month before May 2021 to 17.75% in June 2021. Inflation pressures have fallen for the third time in a row, but the decline is still not enough to have a huge impact on the economy.
According to SBM Jollof Index Report For the second quarter of 2021, the average cost of preparing a pot of Jollof rice for Nigerian households in March 2021 was N7,124, but it rose to N7,618 in June 2021, an increase of 6.93% in only three months.
The report expressed concern about the prevalence of stunting in children under 5 years of age, which rose from 36.2 in 2012 to 36.8. It also emphasized that the proportion of the undernourished population has increased from 7.6 in 2012 to 12.6 in 2020.
“Most socioeconomic respondents admitted that they can no longer afford three full meals, but instead eat one full meal a day, supplemented by snacks,” SBM said.
Read: Is inflation in Nigeria actually falling?
According to the current Premium Motor Spirit Price Watch report, the average price per liter of gasoline paid by Nigerian consumers has risen from N128.88 in the same period in 2020 to N165.61 in June 2021, an increase of 28.49%.
Nigerians have also seen rising prices of basic consumer goods such as “purified water”, which further inhibits how ordinary people can satisfy their thirst. Unfortunately, as early as 2016, double-digit inflation has always been part of the economy, and many Nigerians have become accustomed to increasing difficulties. Therefore, Nairametrics ranks to investigate how Nigerians are coping with inflation.
Kadara Abdulrahman, Director of Amazing Grace Restaurant, told Nairametrics that especially food prices have risen and there is no end in sight.
“The price of commodities is very high. For example, the price of a bag of rice has risen from N12,000 to N28,000, a box of chicken has risen from N12000 to N20000, and a bag of pepper has risen from N15,000 to N22,000. What is worrying is I cannot foresee when inflation will slow down.”
Kadara responded to inflation by looking for cheaper alternatives to replace the things he often consumes.
He said, “Different pricing of commodities allows us to choose other products with lower consumption costs. For example, the cost of imported rice has risen to the point where we must buy local rice. We prefer mashed yam instead of yam, although due to the price of yam on the market We will make more yam. We use goya oil instead of royal oil when frying, which leads to an increase in market prices.”
Uju Ahaka, Providus Bank’s mobile and online banking officer, has a healthier way to deal with inflation.
She said, “To be honest, inflation has a wide range of effects, with food and housing being the most affected. This recent incident has changed my consumption, especially because I have turned it into a more productive exercise. And started a weight loss plan.”
Ashogbon Olusola, an architect at Bcreative Design Consulting, said that the cost of construction projects is most affected by inflation.
He said, “Because of its importance in the construction industry, I think cement is most affected by inflation. The bag of cement we bought for N2,600 climbed to N3,900 in just two years, which is a big increase. “
Olusola also said that only if the government intervenes vigorously, inflation will fall.
“I believe that if the government intervenes in some way, we may see prices drop, which will help reduce construction costs and the cost of renting or owning houses.”
what does that mean
John Maynard Keynes said, “The ideas of economists and political philosophers, whether they are right or wrong, are stronger than commonly understood.” Therefore, high inflation can be regarded as a flaw in Nigeria’s economic policy.
Nigerians will have to endure escalating economic pain until the problem is resolved. It should be emphasized that inflation will cause social chaos, such as rising crime rates and political unrest.
However, Nigerians have demonstrated perseverance in adversity, which once again demonstrates the resourcefulness of citizens. However, if this situation continues, only time will tell how Nigerians will respond.