Nigeria: The Surge In Cost Of Living Killing, As Rise In Dept Beyond Comprehension
Eben Enasco Reporting.
HALLOWEEN has been particularly dank in Nigeria this year, with rain tumbling down and the darkness enveloping the citizens before the day had truly begun owing largely to the steady surge in the cost of living that is killing the living.
If the ecosystem wanted to reflect the mood of Nigerians, it had done so perfectly by doing so with untold hardships.
From the wake in the morning till the close of the day, the complaints are already threatening to go the same way as too many over the past decade, with the citizens stranded in hunger as they slowly crack under the pressure.
Fires of depression have multiplied like stray cats at a speed dating event.
The temptation to look for saviors on the horizon is beloved by journalists reliant on the Country for clicks in the dog-eat-dog world of Google traffic.
There are walking living corps in Nigeria who are yet to believe that they are dead because the mercy of God still sustaining them.
This also heavily hints at the lack of structure and reformation policies in the country.
The cost of about 10 seeds of tomatoes in an open market is sold between N1000 and N1200.
For eggs, a crate is sold between N3000 and N3300 where you have in the crate, thirty pieces.
A tuber of average yam is sold for between N1500 and N2000.
The cost of onion Is between N200 and N250 per one.
A carton of noodles with 24 pieces is sold for N8500.
Volkswagen Golf 1.4 90 KW Trendline Or Equivalent New Car ₦10,000,000.00
Toyota Corolla Sedan 1.6l 97kW Comfort Or Equivalent New Car) ₦17,500,000.00
Utilities Monthly Basic Electricity, Heating, Cooling, Water, Garbage for 85m2 Apartment 40,003.70₦ as per estimated billing.
Mobile Phone Monthly Plan with Calls and 10GB+ Data cost ₦5,450.00
Internet 60 Mbps or More, Unlimited Data, Cable/ADSL ₦23,409.51
The cost of gasoline is between ₦591 and ₦655 per litter
Most of the inflated rates are attributed to a rise in foreign currencies to the naira which has been struggling to regain stability.
According to research as per the exchange rate in October 2022, Nigeria was believed to have an average monthly salary of 339,000 Nigerian Naira per month, which is nearly 774.75 US Dollars per month.
As of 2023, the current minimum wage in Nigeria is NGN65,000.00 per month. It became valid on September 1, 2023. The amounts are in Nigerian Naira.
According to the latest statistics, the monthly cost of living for an individual in Nigeria amounted to 43.2 thousand NGN in 2020, whereas this figure added up to over 137 thousand NGN for a family by Nov 3, 2023.
Summary of the cost of living in some densely populated parts of Nigeria for a family of four is estimated monthly costs at 1,505.8$ ₦1,239,753.6 without rent.
A single person’s estimated monthly costs are 419.1$ when converted amount to ₦345,040.5 without rent.
So far, Nigeria has spent over $15bn in the past decade to meet its expanding rice and other staple food consumption, despite its potential to be a net rice exporter, the firm stated.
Rice like other staple food consumption in the country is high and has been on a steady rise in the reach of local supply, leading to a supply gap of about two million metric tonnes annually, a new report has disclosed.
This has led to an over 37 percent increase in the price of the commodity so far in 2023. This was revealed in ‘AFEX Wet Season Crop Production Report for 2023.
Apart from also blaming the increase in prices on flooding and the ripple effect of the international market dynamics, access to transporting local rice and other staple food production across the country has been hindered by bad roads.
It, however, expects an increase in the production of rice by approximately 4 percent, and a further increase in the price of paddy rice by up to around 32 percent.
Like any other country, various factors impact the salary structure in Nigeria, including educational qualifications, city, work experience, and more
If an average Nigerian depends on their monthly salaries, how would they cope following the minimum wage per head?
But, despite any savior’s cynicism, the return of the APC-led Government is poorly timed for the beleaguered Nigerians who have been craving surgical operations in the Country’s economic ecosystem.
No doubt, Africa’s largest economy’s fiscal deficit has worsened in recent times as it currently spends 98 percent of its revenue on debt servicing from 96.3 percent in 2022 and 83.2 percent in 2021.
According to the Debt Management Office DMO, Nigeria’s debt serÂvice-to-revenue ratio is high and a threat to debt sustainability just as it noted that the government’s current revenue profile could not support higher levels of borrowÂing.
A source’s findings disclosed that Nigeria’s debt serÂvicing spending slowed to N849.58 billion in the second quarter of 2023 from 43.04 percent compared to N1.49 trillion, which was spent in Q1 2023.
According to data obtained from the DMO, between January and March 2023, Nigeria spent N874.13 billion on domestic debt servicing, while it spent $801.36 million N617.35 billion on external debt servicing, giving a total of N1.24 trillion.
Between April and June 2023, Nigeria spent N565.88 billion on domestic debt servicing, and $368.26 million N283.7 billion on external debt servicing, a total of N1.24 trillion.
It was reported that in six months, a total of N2.34 trillion was spent on servicing the country’s debt.
It is a rat race style always for successive governments who are never sincere to those they govern.
If you’re good enough, you’re old enough and Nigeria is certainly good enough to manage its abundance of resources
Strikingly, it is very difficult for a country to have a positive balance of trade while being industrially backward, yet resorting to borrowing.
To do this, a country will have to sell a certain amount of what other countries need and buy less than this amount from them.
For this reason, most countries prefer to produce some of what they consume so that they need to buy less from others and to add value to the things they sell so that they need fewer units to make more money.
To achieve this, a country needs a strong industrial sector, good roads, and a reduction in taxes.
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