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.
Phillips Consulting: Website