As the festive season draws nearer, Nigerians are cutting back on their holiday spending as the rising prices of goods and services have crimped their purchasing power.
The festive season is known for relaxation, shopping, and spending time with loved ones, but many Nigerians are worried about money due to high inflation and currency depreciation.
The country’s inflation rate rose further last month to 21.47 percent from 21.09 percent in October, data released by the National Bureau of Statistics on Thursday show.
Raphael Ebube, CEO of Asrock Travels & Edu Consults, noted that the holiday season is usually a time when families travel both within and outside of the country to spend time with their loved ones. “But this year is different; many of our clients have expressed dissatisfaction with the cost of airline tickets.”
“Local trip and outing excursion sales have also decreased; people are thinking about how to get the most important things first for the festive holiday such as food items, as well as saving up for what comes in January 2023,” he said.
Inflationary pressure is changing shopping habits and spoiling traditions for many Nigerians. Lower-income households with little or no cash cushion are making harder choices such as whether to celebrate Christmas or not and what should be on their menu for the season.
Dorcas Akuna, a mother of three, said her company that normally gives staff members a bag of rice each will not be doing much this year, adding that this would add to her expenses for this holiday.
“I took the kids to Lakowe Lake for the holidays last year, but I don’t believe there are any plans for that this year. I need to shop for food items and get the kids some new clothes, and we all know how expensive things are right now,” Akuna said.
The lingering fuel scarcity in some parts of the country will also make it more difficult for millions of Nigerians to travel within the country for the holidays.
A litre of petrol in Lagos sells for as high as N250-N300 from N170 two months ago, choking cash-strapped Nigerians who are already grappling with high prices of goods and services.
“I’ve been considering driving to the East because I can’t afford the high cost of a local flight ticket, but the fuel shortage isn’t helping. How much black market fuel will I buy to fill my car tank, let alone the country’s insecurity, to travel by road?” said Obinna Chidi, CEO of Zims Real Consults.
Read also: Nigeria’s inflation hits 21.47%, highest in 17 years
Chidi said he can’t imagine spending the holiday season with his family in his hometown but due to the country’s economic downturn, he has no choice but to stay.
“I usually take my families to London for the holidays, but because plane tickets are so expensive, I was thinking about taking them to an African tourist destination instead,” said Abdul-Salam Afeez, CEO of Jibran Homes.
He said he recorded slow sales in November, adding that since the holiday season is quickly approaching, people are now devoting their spending to Christmas shopping.
Sarah Okafo, CEO of Lucy Kitchen, a food vendor and caterer who normally organised a festive food menu for families and individuals, said this year’s orders have not been as many as they were in previous years.
She said she believes the higher price of the food menu compared to last year is a reason for receiving fewer orders, but hoped her customers would understand that the market price for having those foods prepared had doubled.
