14 Days to Christmas: Nigerians spend cautiously as tough 2017 looms

With Christmas barely 14 days away, Agatha Ihiminre, a federal civil servant and mother of three who lives with her family in Benin, the Edo State capital, is certain that her home will not witness the traditional slaughtering of chicken and other exciting things that accompany the annual Christian festivity this year.
Her reason is simple: Times are hard and things may get tougher in 2017.
“The economy is bad and there are no signs that things are about to get better. Things are too costly in the market. Perhaps with the exception of tomatoes and onions, every other commodity in the market is now beyond reach,” Ihiminre tells BDSUNDAY in a telephone conversation.
“A four-litre bottle of palm oil now sells for between N4,000 and N5,000, a bag of rice between N22,000 and N24,000, a live chicken between N7,000 and N8,000; and even children’s clothes, both new and fairly used, are also out of reach for countless families,” she says.
Having taken stock of these realities, Ihiminre says she has already told her children to forget Christmas clothes, chicken and any outing this year.
“It’s not our fault; things are hard. N7,000 is not a small amount of money to be spent on a single live chicken. How many chickens will I buy that can serve all of us and visitors who may be hoping that there would be food in my house as usual? Things have never been this unbearable in my entire life,” she says.
Christmas is usually a special season for Nigerians, as it heralds the end of an old year and the beginning of a new one. In times of economic boom, by now the signs would have been glaring as many families would have gone on shopping spree in preparation for Christmas and New Year celebrations.
This year, however, amid biting economic recession that is showing no signs of ending soon, many Nigerians, like Ihiminre, are facing the economic realities on ground and adjusting their spending patterns. Those who spoke to BDSUNDAY said they are spending cautiously as they foresee an even tougher 2017. While the not-so-rich folks say they are more concerned about children’s school fees, house rent and other heavy expenditures that come with January, wealthier Nigerians are spending cautiously lest they should attract resentment from those who don’t have.

Low-key preparation

“From my own experience, Christmas is a special time for Nigerians and by now people would have started buying and exchanging gifts to friends and relations, but I don’t see that happening,” a marine project management consultant and chartered engineer, who does not want his name in print, tells BDSUNDAY.
“Even as I speak to you, with my position in society, everybody is watching what is going on; you can’t spend anyhow. The funds are not there, people need assistance all over the place, and even those who have are sceptical about spending now. It is a big problem really,” he says.
Indeed, our visit to some markets across the country shows that trading activities are very slow, even though those goods that hallmark the season, such as Christmas lights, trees, red hats with a tinge of white, children’s clothes and shoes, etc, have flooded the markets.
At Balogun Market in Lagos, traders complained about low sales while buyers complained about high cost of goods in the market. Many prospective buyers were seen haggling over prices from shop to shop but ended up leaving the market empty-handed.
John Okwuchukwu, a dealer on jewelleries who complained of hard times, says there is no Christmas celebration in his home this year as well. His jewellery shop, which used to be filled with stock, is virtually empty. A well-known importer who used to go to China to buy goods at least six times in a year, Okwuchukwu’s capital has been depleted by the foreign exchange crisis which has meant that he has not visited China this year. He now picks whatever goods he can get from his neighbours to put in his shop.
“Travelling home for Christmas is also out of the question, unless it is to relocate my family to the East and then come back and continue the hustle. Man must survive. We pray that next year will be better,” he says.

Burden from dependants

Some Nigerians are also complaining that the task of carrying financial burden of close and extended relatives is becoming too much to bear, saying they may not be able to do anything for these dependants this Christmas going by the current economic situation. This will definitely affect their Christmas celebration as well as that of their dependants.
“My situation is worsened by several unemployed relatives that their numbers have continued to increase on my list of those I plan to give something. What do you expect in a situation where those fully employed in a family are few? Many of them are out of job because they were affected by the economic downturn. It is a hard thing for me these days thinking about buying clothes,” says Andy Udoma.
“As Christmas approaches, the names of those asking me for present increase. It is not a funny situation at all. I may consider the option of switching off my phone this season because the pressure is just too much,” he says.

Analysts’ view

The low-key celebration of this year’s Christmas, however, tallies with the expectations of some analysts who spoke with BDSUNDAY. This is in light of the economic recession that the country is currently mired in.
“It is tough really. What should average Nigerians be doing right now? We should go back to learning to save frankly. I think this year should be a very low key celebration, no doubt about it. For two things: even those who have money, in my opinion, it will not be good to be seen splashing money; doing so would fuel resentment,” says a big player in the oil industry, who asked not to be named.
“So, all of us – those who can afford it and those who can’t afford it, everybody should be low-keyed. And we should see how we can manage the little we have because 2017, I expect it’s going to be tough. Or don’t you think so?” he adds.
A female player in the health sector, who pleaded anonymity, thinks the celebration needs to be low key.
“I am not sure there’s a lot of money. This is the time people should tighten their belt. If they do have some funds, they need to do more saving rather than spending at this point in time. At the same time we all should give thanks for getting to the end of the year, looking forward to a better new year. Basically, I think it is time for saving and planning for the New Year,” she says.

Cheaper rice brands to the rescue

But while many Nigerians are decrying the high cost of food items, especially rice which is a staple and a major player in Christmas festivities, some cheaper options have emerged in many parts of the country.
In Edo State, there is a brand called ‘Hausa rice’, which several Edo residents are said to have resorted to. A bag of ‘Hausa rice’ sells for between N18,000 and N19,000, while a paint bucket of it is sold for N900. The downside, however, is that the rice has some stones in it, although it is said to be better than some expensive brands.
In Ebonyi State, three grades of Abakaliki rice are available at the different rates. The lowest grade, R8, sells for N5,000 per bushel and N10,000 per 50kg bag; the higher grade, 306, sells for N7,000 per bushel and N14,000 per 50kg bag; while the highest grade, Mass, sells for N8,000 per bushel and N16,000 per 50kg bag.
In Lagos, the state government has announced that the locally-produced LAKE rice, a product of collaboration between Lagos and Kebbi States, will be available for Christmas at the cost of N13,000 per 50kg bag.
And there is also Anambra rice, which sells for N15,000 a bag.

 

CHUKS OLUIGBO, NATHANIEL AKHIGBE & SEYI JOHN SALAU