Despite a tough economic climate and government policies that would dampen spirits in many countries, Nigerians are demonstrating remarkable resilience and creativity in finding ways to survive.
The economic hardship in Nigeria is severe, and has destabilised other nations in the past.
A recent example is Kenya, where citizens launched mass protests against a tax hike, leading to the death of dozens and hundreds injured.
The situation in Nigeria is getting worse on a daily basis. Harsh economic conditions, insecurity, mass unemployment, food inflation among others are major challenges facing the country.
The National Bureau of Statistics (NBS) said food inflation rose to 40.66 percent in May, compared to the 24.82 percent reported in the same month last year — indicating an increase of 15.84 percent points.
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The bureau said semovita, oatflake, yam flour prepackage, garri, bean, etc (which are under bread and cereals class), Irish potatoes, yam, water yam, etc (under potatoes, yam and other tubers class), contributed to the year-on-year increase in the food inflation rate.
Other contributors are palm oil, vegetable oil, etc (under oil and fat), stockfish, mudfish, crayfish, etc (under fish class), beef head, chicken-live, pork head, and bush meat (under meat class).
According to the 2023 State of Food Security and Nutrition World report, the number of Nigerians who are food insecure has increased by 133 percent in three years. It jumped from 63.8 million people between 2014 and 2016 to 148.7 million people between 2020 and 2022.
Many citizens continue to grapple with poverty, as highlighted by the World Bank’s report indicating that 14.2 million Nigerians fell below the poverty line in 2023. The report attributed this increase to sluggish economic growth and rising inflation, emphasising the challenges faced by Africa’s largest economy.
However, Nigerians seem to have a unique ability to persevere in the face of adversity.
Here are some examples of the creative ways Nigerians have adopted to cope with the harsh economic situation:
Entrepreneurship and skills acquisition
The high rate of unemployment in the country has forced many young people into entrepreneurship. Many Nigerians are starting their own businesses, often small-scale ventures, to supplement their income or create new opportunities. This entrepreneurial spirit is a major driver of the Nigerian economy.
“I started my point of service (POS) business after hunting for a job for two years without a positive result,” Adewale, a university graduate, said.
Nigerians are also investing in learning new skills to improve their employability or create new income streams. This could involve taking online courses, attending workshops, or participating in apprenticeship programs.
Many young graduates are now learning new skills, either online or physical, after spending years in higher institutions.
“I started learning fashion designing during my service year; now it is my major source of income,” Deborah, a university graduate, said.
Alternative income sources
Nigerians are finding creative ways to generate additional income, such as ride-sharing, online freelancing, or selling crafts and goods online.
Many who are gainfully employed now have “side-hustle” to augment their income in the face of rising cost of living.
“After going to work, Monday-Friday, I do car-hailing during weekend to make extra money,” a banker said on the condition of anonymity.
Entertainment and sports
A BusinessDay report titled “Nollywood, Afrobeats’ N729bn haul glams up economy,” highlighted how Nigerians’ growing appetite for entertainment is fueling a boom in the entertainment sector.
For the third quarter in a row, the industry has seen significant growth, contributing a record-breaking N728.80 billion to the economy in the first quarter of 2024.
This marks a substantial jump from the N576.67 billion contribution in Q1 2023 and a significant increase from N382.37 billion reported just a year prior in Q2 2023, according to data from National Bureau of Statistics (NBS).
These figures highlighted the impressive expansion of Nigeria’s movie, music, arts, and entertainment industries, which have experienced a remarkable 152.79% growth over the past decade.
From a contribution of N288.31 billion to GDP in Q1 2014, the combined entertainment sector – encompassing arts, entertainment, recreation, motion pictures, sound recording, and music production – has more than doubled in size, reaching a staggering N728.80 billion by Q1 2024 (NBS).
The NBS gathers data for the sector by considering revenue generated and total sales from movie and sound recording production, alongside revenue from TV rights, royalties, and fees.
The report showed that despite the sluggish economic growth and rising inflation in the country, many Nigerians still cherish entertainment.
In Nigeria, the love for sports, especially football is as fervent as the nation’s heartbeat, with every dribble, goal, and whistle resonating through the souls of its people.
Football in Nigeria is more than a sport; it’s a unifying force that transcends social and economic divides.
Although local football clubs are not too popular due to low investment and failing infrastructures, many Nigerians find solace in watching foreign leagues, mostly the English premier league and La liga.
The proliferation of sport betting has made football more popular among Nigerians, many don’t just watch, they stake with their money, which many see as another way to make money.
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Religious and social gathering
Aside from spirituality, religion provides psychological and emotional support during hard times, offering hope and a sense of belonging to many Nigerians.
Nigerians don’t joke with their religious houses; they see their churches and mosques as not just worship centres, but where they meet friends, interact and ease the hardships in the country.
Social gatherings, such as weddings, burials, and naming ceremonies, are places where many Nigerians love to be, mostly on weekends. It gives many people the opportunity to wine and dine with families and friends and take their minds off whatever hardship they are facing. Although celebrants now downside social events due to the economic hardship, however, many Nigerians still turn up for “Owanbe,” as it is popularly called in the South.
Thrift contribution and loan
While informal savings groups have existed for a long time, tough economic conditions are driving a surge in their popularity. These groups, often called “ajo” or “esusu,” allow members to pool their money and take turns receiving a lump sum. This helps them tackle financial needs and fosters a sense of community by providing mutual support during challenging times.
Nigerians are increasingly relying on personal loans to navigate challenging economic times, according to a Central Bank of Nigeria (CBN) report. In January 2024, the total value of personal loans surged by 14.3% compared to December 2023. This translates to a jump from N2.648 trillion to N3.03 trillion.
The CBN report attributes this rise in personal loans primarily to heightened inflation. The overall consumer credit outstanding also increased by 11.9% to N3.823 trillion in January 2024. Notably, personal loans dominated consumer credit, accounting for 79.2%, while retail loans made up the remaining 20.8%.
A recent study by SBM Intelligence reveals a troubling trend: due to record inflation, 27% of Nigerians across all income brackets are now relying on loan apps to make ends meet. This surge in demand for personal loans coincides with a significant increase in the number of digital lenders available.
The number of approved digital lenders in Nigeria has skyrocketed by 64.16% since April 2023. This reflects the growing need for credit among Nigerians grappling with declining purchasing power and rising prices.
According to the Federal Competition and Consumer Protection Commission (FCCPC), the number of digital lenders rose to 284 in May 2024 from 173 in April 2023.
Social media powerhouse
Over 36.7 million Nigerians actively use social media in January 2024, a significant increase of 16% compared to January 2023, a report by Datareportal stated.
This surge coincides with a rise in internet penetration, reaching 45.5% of the population in early 2024.
Research by Statista also revealed that Nigerians are among the world’s leading social media consumers, averaging 4 hours and 20 minutes across various platforms.
As the economic crisis bites harder, many Nigerians now use Facebook, Twitter (X), Instagram, YouTube, WhatsApp and others to entertain themselves and dissociate from real life problems.
The fact that some of these platforms now pay their users makes them more attractive to many seeking alternative sources of income.
Many young entrepreneurs also use social media as a marketplace where they interact with customers and earn daily income.
Farming
A young woman, Amaka, a mother of four and a secondary school teacher based in Owerri, Imo State, relocated out of Lagos a few years ago before her husband retired from the Nigeria Customs Service.
Since her husband’s retirement from the Customs Service, she has struggled to cope with the rising cost of living which resulted in her taking up a teaching job in Owerri. But the teaching job is also not yielding enough income to take care of her family.
These are just a few examples of the many ways Nigerians are coping with the economic hardship. Their creativity and resilience are an inspiration to others facing tough times.
Nigerians’ unwavering spirit is an inspiration, but the government must address the root causes of the economic hardship. Policies stimulating economic growth, creating jobs, and reducing poverty are essential for long-term stability.
