As a result of the rise in the cost of living, a report by a Nigerian business and management consulting firm, Phillips Consulting Limited, titled ‘Talent Management, A New World Order: Shifting Paradigms’ revealed that more than two-thirds of Nigerians are now cutting back on both necessities and other supplies. The survey was taken by 1,054 Nigerians who were at least 18 years old and was conducted between August 24 and September 3, 2022. The findings of the globalism study carried out by Cambridge University and data from YouGov were incorporated into this online survey.
According to the results of the survey, the majority of respondents had reduced their discretionary spending in response to price increases. Travel within Nigeria has been reduced by 72%, and travel outside of the country by 63%. The percentage of those who reduced their spending on things like digital television and gym memberships was even higher at 81%. Others reduced their spending by 90% on clothing, 85% on food shopping, 81% on coffee outside the home and 69% on groceries
People’s standard of living has been impacted by the surge.
It stated that while the cost of living keeps rising, low-income families are feeling the pinch the most and are making sacrifices in other areas of their budgets as a result. This circumstance, is leading to a decrease in living standards, which is harmful to both physical and mental health and is exacerbating preexisting problems. Since last July, inflation in the country has been at a 17-year high, mostly due to the aftermath of the war between Russia and Ukraine.
The National Bureau of Statistics reports that it increased for the fourth month running in April 2023, from 22.04 percent to 22.22 percent. The food price, which accounts for half of the overall inflation rate, increased from 24.45 percent in March to 24.61 percent in April. According to experts, many people are having serious financial difficulties as a result of the current economic crisis. About 86% of Nigerians surveyed felt that living well on their present wage was either impossible or extremely difficult, given the current economic climate.
65% of people reported an increase in the cost of living.
They added that about 65 percent of Nigerians reported that the cost of living had increased significantly, while 11 percent stated that the cost of living had only increased slightly for them. The repercussions of rising daily costs go far beyond a mere economic squeeze. Failure to meet fundamental needs such as food, rent, transportation, healthcare, and education can lead to a multitude of detrimental effects on mental health and overall well-being, they said
More so, statistics from the World Bank also revealed that Nigeria’s minimum salary will have dropped by 35.5% to N20,000 by 2022 due to the country’s rising inflation rate. Higher prices for local essentials like rice, bread, yam, and wheat, particularly in non-rural areas, are blamed for the estimated five million additional Nigerians falling into poverty between January and September of 2022, the report from the international organization added on Nigeria Development Update. In context, about 15 million Nigerians fell into poverty between 2020 and 2022 due to the surging inflation.
Minimum wage have also seen a significant decline.
However, the analysis noted the decline from the 2019 minimum wage of $82 to the current rate of $26. The rise in consumer prices has made them one of the world’s highest rates. Many families, especially those with lower incomes, are cutting back on spending as a result of the rising cost of living. The PCL research concluded that, as a result, living conditions had declined; in order to alleviate these problems, it is recommended that the Nigerian government conduct a thorough, objective assessment of the minimum wage.
Related Links
Phillips Consulting: Website
Snopes.com
Inflation cuts 90% of Nigerians’ spending. – Both standard of living and people’s health has been impacted by high inflation. – Express your point of view.
High inflation rates are a major concern for Nigeria’s economy and require prompt policy measures to curb the inflation rate. The government must address the root causes of inflation such as unemployment, currency devaluation, and political instability, and implement sound economic policies to facilitate economic growth. Additionally, efforts must be made to protect households from the adverse effects of inflation by providing adequate social welfare programs. Ultimately, tackling inflation should be a priority for the Nigerian government to safeguard the welfare and standard of living of the citizens.
Inflation cuts 90% of Nigerians’ spending this is true inflation in this country is too high people are suffering things are cost while the income is low to purchase all this high cost product it really affect the standard of living of people
This inflation issue is getting more serious than we could think of seeing that the government don’t have any practically feasible solution to tame the situation this times are very hard.
Inflation is too high in the country it can really affect the physical and mental health of people low income earner are suffering can’t afford the price of thing in the country something need to be done
Due to high inflation in the country as a result of so many factors enumerated above a lot of cut down on their cost of spending. It is well with this country.
Low income families are the one bearing the brunt of this hard time largely. To live a common standard live in Nigeria now is becoming a nightmare and we need help.
Inflation has really eaten deep into our economy. It is quite unfortunate it is here to stay. Coupled with the fuel subsidy now, I just hope we can have palliatives to cushion the effects of everything.
Inflation cuts 90% of Nigerians’ spending. Everything is very expensive in Nigeria now. Many people are really suffering this days. Is only government that can help us in this country
The last of President Mohammadu Buhari administration has taken the nation backward creating hardship for the average Nigerians. The level of poverty has increased. If the government of the day has done their home work I don’t think the inflation will have much effect on us.
High inflation rate is a major factor that FG needs to look into because its killing the Nigerian. The FG need for set up a policy for control of some good very fast before its too late.