inflation | Page 2 of 3

Nigeria’s annual inflation rate has climbed to 29.9%, its highest in almost 28 years. The cost of living is choking the living, and it’s touching every aspect of our lives, including relationships.

I spoke to some Nigerians about how inflation has changed their relationship dynamic, and here’s what they said.

Rotimi, 27

My friends and I have this weekly tradition. We hang out at bars every Friday to drink and just talk about our week. We also rotate payment, so if I pay for the whole group’s drinks this week, someone else will do it next week.

When I paid for the group in December 2023, it cost me about ₦80k. That was even with Detty December price hikes. But when it was my turn in February 2024, it was over ₦100k for the same drinks and chops for five people. I’ve avoided the last two hangouts because spending that kind of money isn’t sustainable on a ₦350k salary. I still have bills.

My friends are considerably richer, so they probably haven’t noticed how sick the increase is. But I intend to tell them soon that I can’t keep up. We’ll have to consider other ways to hang out.

Chioma, 31

Since the first time my best friend and I went on a girl’s trip in January 2022, it’s been like an unofficial rule to do it every year. We went again in January 2023. Things are typically cheaper in January.

But we didn’t even talk about a girl’s trip this year. We sent a couple Instagram links of resort locations to each other, but we didn’t discuss logistics because we knew we couldn’t afford it. Between local flight costs — because the roads are too dangerous to even consider — accommodation and feeding, you’re already budgeting ₦500k. We’ll just make do with our imagination for now.

Tobi, 26

I used to fill my boyfriend’s car tank once a month to show love. But what used to cost me ₦40k increased to over ₦100k when the fuel subsidy was removed in 2023. I still sent the ₦40k monthly for a while because at all at all na im bad pass.

But now, I only send ₦20k occasionally because I have other bills, and things double in price every day. He understands and even sends me money occasionally. It’s just sad that I can’t be as intentional as I want to.

ALSO READ: “It’s Shameful to Just Be Collecting” – 7 Nigerians Talk About the Struggle to Gift Their Abroad Friends

Ayomide, 23

My siblings and I always go all out for my mum’s birthday. Our father is dead, so we do everything to make sure she doesn’t feel lonely on that day. In 2023, we contributed ₦150k to pay her shop rent and do a small celebration.

Her 2024 birthday is a few weeks away, but my siblings haven’t mentioned anything about contribution. We’ve talked about birthday plans but haven’t billed ourselves yet. I understand because everywhere is dry.

We want to get her a phone, but it costs over ₦200k. Something that was just about ₦100k in 2023. It’s just somehow.

Femi, 27

My girlfriend likes receiving flowers, but she specifically told me not to buy her flowers on Valentine’s Day 2024. She said I should send her the money or buy something else. I fully understand her point. Flowers used to cost ₦15k – ₦18k, but now, you hear ₦30k – ₦50k for the smallest bouquet. When it’s not like the flower will live forever.

Glory, 32

My husband and I go on fancy dates every weekend to spend time together away from the children. This typically costs ₦20k maximum, but inflation has made restaurants charge higher. When we considered the increased cost of fuel and foodstuff, we had to think twice about spending up to ₦35k on dates.

We’ve reduced the frequency to once per month since late 2023. Sometimes sef, we do indoor dates to save money. It does the same work.

Iyanu, 28

I’ve made it a habit to bring bags of foodstuff with me when I visit my mum because she always has family members staying with her. But I haven’t been able to meet up with that since 2023. When I visited her last month with only five tubers of yam and a paint bucket of garri, she called me aside to ask if all was well. It won’t be well with this government.

NEXT READ: 7 Nigerian Millennials Share Hacks for Living Through Inflation

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Even if you live under a rock, it wouldn’t stop you from feeling the biting effects of the inflation in Nigeria. According to recent data, January 2024’s food inflation stood at an alarming 35.41%. God, abeg.

It’s not surprising that fine dining restaurants that’ve always charged through the roof for their meals are moving madder than mad. If you don’t plan to spend two weeks worth of your hard earned salary on a plate of food, these alternative spots should be on your radar.

Your parents’ house

If you have a date, take them to your parents. It’s a huge step, but beloved, your pocket might not survive the effects of that creamy pasta and strawberry daiquiri. Ten minutes after your arrival, your mum or dad will ask, “So, what is your friend going to eat?” And the good thing is you’ll also get a plate.

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Your grandparents’ house

Lagos restaurants can argue all they want, but ₦14k for a plate of abula is wild. That’s a pot of soup for a week, if you think about it. Everyone knows baby boomers make the best abula anyway, so why not just visit your grandparents. You even get a wide option of paternal or maternal. Alternate between their houses, and you wouldn’t have to pay a thing for homemade local delicacies again.

Don’t forget the Mama Put on your street

If you’ve rolled your eyes at all the Mama Put spots in your area, it’s time to do better. They might bump up their prices a little, but you’ll still fix yourself a decent plate with a ₦500 – 1k budget. Some of them even throw in garnishes like red onions to help your food cosplay as a fine dining meal.

Or that friend that knows how to cook

It’s fine if they weren’t inspired to start cooking until after Hilda Baci’s cook-a-thon. Now, you can fill their ears with sweet whispers of how food is the new crude oil. If they’re scared to start a food business, offer yourself up as their first paying customer and let them cook.

Owambe

If you’re in Lagos, the weekdays have nothing on you. Search the nook and crannies of your neighbourhood and you’ll find an owambe to gatecrash. Just make sure you wear white so you can blend in no matter the theme of the day. Find a good spot and make yourself comfortable. If the food doesn’t come, find a waiter to tip.

People outside Lagos should target the weekend though.

Fast food chains

Just a reminder that you can still dine like a second-class king with a ₦3k budget when you walk into any franchise outlet near you. Swallow your pride today.

The house of God

Perish the idea that you’ll get small chops, coffee or even jollof because inflation has made that a thing of blessed memories. But remember, feeding your spirit is just as important as feeding your earthly body.

If you need even more places for your must-visit list: These Are the Best Suya Spots in Lagos.
It’s crystal clear we have a problem in Nigeria. Inflation has reached 28.92% — the highest in 27 years — and things are going from bad to worse.

Since all of us can’t just japa and leave this country empty, we might as well figure out how to live through it. I spoke to some millennials, and they shared the hacks they’re holding onto in these trying times.

Prioritise essential expenses

If you know you typically finish a bag of rice in a month, it’s better to buy that bag when you have money rather than buy it small small because that rice can double in price in two days.

I like to also buy things in twos or threes. At least, I get to delay buying the same thing at an (inevitably) higher price for a little while. I can stay broke happily, knowing I already have most of what I need till the next paycheck comes.

— Kelvin

Take loans if you have to

Gathering money over a couple of months to make a big purchase doesn’t work in this economy again. Before you finish saving the money, the item has doubled in price.

So, if it’s an item you absolutely can’t do without, consider taking a loan to buy it. I do this regularly and advise anyone else to do the same. It works even better when you can get informal loans with little or no interest. But pay back your loans o. Let’s not be unfortunate.

— Opeyemi

Comfort is good, but survival is better

This might sound like advice to reduce your quality of life, but if you don’t want that quality of life to reduce by force, you need to start making sensible cuts.

I used to run my generator all day whenever NEPA did their thing, but now, I do most of my work within the three hours that my generator is turned on daily, so I can be on my laptop while it’s connected to electricity. That way, my battery is still charged when the generator is turned off, and I can still squeeze out a couple of hours before the battery dies.

Think about what you can cut sensibly. Do you need to take an Uber for the entire trip, or can you take public transportation to a point first?

— Peace

Nobody will beat you if you haggle

Our mothers knew what they were doing when they priced things at the market. I used to be ashamed to haggle, but now, I have to do it.

Pro tip: Start the haggling process by dividing the initial price into three. For instance, if the seller says something costs ₦1k, start pricing from ₦300 or ₦350. You’d be surprised how much you save when you and the seller eventually settle on a price.

— Christy

Avoid billing like your life depends on it

I now do a thing where I refuse to open or respond to WhatsApp messages until the sender reveals why they’re messaging me.

Messages with only “Hi” or “Hello” go unanswered unless you follow it up with “My name is XYZ, and I’m reaching out for ABC reasons”. For not-too-close family members, I make sure to start conversations with my own problems. Everywhere is hard, and this is not the time to make any unnecessary expenses.

— Kene

RELATED: The Most Effective Ways to Avoid Aso-Ebi Billing

Have a budget, but be flexible

I’m big on budgeting, but I recently noticed that my budgets weren’t adding up. For instance, I could budget ₦5k for gas and suddenly hear that they’ve increased the price.

I still budget, though. If not for anything, it helps me track my expenses and have something to look at when I start wondering where all my money disappeared to. So, have a budget but still have it at the back of your mind that things can change. At least, if it doesn’t work out, you know it’s Nigeria, not you making poor financial decisions.

— Ola

Make money

It’s easier said than done, but at the end of the day, money is what will still save you from totally erasing your quality of life due to inflation.

I’m constantly on the lookout for side gigs and better job opportunities to increase my income. If you like, be feeling guilty or thinking you want to be loyal to any company. Even your oga is looking for a better-paying job.

— Bori

NEXT READ: 7 Salary Earners Across Different Income Ranges Get Candid About Saving

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Within the space of two months, fuel prices have tripled, the naira has fallen to record lows and inflation has gone through the roof.

Now more than ever, doing business profitably in Nigeria has become even more difficult. How has this affected small business owners? I spoke to a number of them about how they’re staying afloat during this period.

Some have had to increase retail charges

“I sell decorative flowers, and my business depends on foreign exchange because many of my suppliers have to import the products. Since June [2023], prices from my suppliers have doubled, and I’ve had to do the same for retail. For example, a small flower vase that I used to sell for ₦9k just two months ago is now ₦17 – 18k. My customers are angry, and sales have reduced drastically, but I can’t afford to charge lower. If I sell everything at a loss, how would I restock?” — Glory, Flower shop owner

“I deal with electronics, which means I need constant electricity so prospective buyers can test the products. Before now, I spent around ₦7 – 10k weekly on fuel. Now, I ration my fuel usage but still spend close to ₦21k weekly. I’ve had to increase my prices by 30% to meet up with the operational costs. I may even have to increase it again because supply has also become more expensive. I have to transport my products from Lagos to Ekiti, and shop rent is still there o.” — Nedu, Electronics dealer

“The difference hasn’t been that much because my plant business only started operating in April [2023], but delivery costs have risen. When we started, we could do Uber delivery from our location at Surulere to Lekki at ₦3k, but now, drivers don’t accept anything less than ₦4,500. The cost of decorative items like plant pots and white stones have also increased, which of course, increases the selling price. We informed our customers of the price change and increased delivery fees; they’ve been good sports about it. We also try to give a subsidy of sorts on delivery by paying a percentage of the cost so it’s not too costly for our customers.” — Tobi, Plant and furniture business owner

Others have had to take a break

“Inflation is dealing with me, not the other way around. I market bags on WhatsApp for a commission fee from a wholesaler, but sales have been really bad for about two months. The prices have doubled, and people are looking for what to eat, not fashion. In a good month, I used to make around ₦40k in commissions, but I’ve not sold anything since July. I just want to take a break and re-strategise.” — Becca, Fashion entrepreneur

“I sell food, and I normally cook twice a day to meet up with demand. But I’ve had to limit my cooking to only mornings because of the high cost of food and items like plastic spoons, nylon and “takeaway” plates. Customers complain about the reduced food quantity, and some even eat on credit. I’ve moved from making around ₦6k in daily profit to about ₦2k. It’s hard.” — Iyabo, Roadside food seller

Others just closed down

“I’ve had my provision store for about three years but closed it down last month. Sales have been challenging since last year, but 2023 has been something else.

I used to get items from my wholesaler on credit with the agreement to pay back when I need to buy more, but she’s now refusing to sell on credit. And it’s not her fault; the economy isn’t smiling at all. I still have drinks in my freezer that I haven’t been able to sell because the limited power supply means they can’t get cold, and I don’t have money to fuel my generator regularly. I’ll find a way to sell them off later. For now, I’m just tired of selling at a loss.” — Gold, Provision store owner

“I started making natural hair care products in January, but I’m stopping this month because it’s too expensive to keep up. I was still struggling to build my client base when the cost of production went up. For example, a cream I sell for ₦4k used to cost ₦3,200 to produce. Now, it costs ₦4,100 to produce. How do I tell the customers I’m still trying to keep that I’m increasing prices just seven months after I started selling?” — Moji, Haircare entrepreneur

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NEXT READ: Are You Financially Irresponsible, or Is It Nigeria?
Our parents started teaching us delayed gratification early.

You know how growing up, you didn’t dare eat the meat in your food till you’d cleaned your plate? They wanted you to resist immediate pleasure for the satisfaction of eating something you actually like after being forced to swallow semo. It was a good lesson, but it’s not really useful these days. There’s no guarantee that the meat wouldn’t have grown wings by the time you’re done eating.

delayed gratification in tinubu’s nigeria? you go just kpeme. better gratificate now.
— – (@2ponmo2egg) July 18, 2023

In case you haven’t already figured it out, meat is a metaphor for money. ~~Tinubu’s Nigeria~~ Today’s economy might have you thinking that you’re making bad money decisions. That’s a lie from the pit of capitalism, and here’s my case.

Inflation is on colos

AKA, inflation is flying higher than a kite right now. So, no matter how frugal you try to be, your ₦5k can never comfortably last one busy work week again. Blink once and it’s gone, but it has nothing to do with your ability (or inability) to make good financial decisions.

The naira is falling more than someone in love

In a country that’s heavily dependent on forex and importation, everything is suddenly triple the price. Well, except your salary.

The price of gratification has gone up

You can decide to put off buying shawarma till you receive salary at the end of the month, only to hear that the price has increased by ₦2k because the shawarma vendors are business people trying to cut a profit too. So according to Nigeria’s economy, instant gratification is the way to go.

Government-induced sapa isn’t hitting the brakes

In just about three months, fuel prices, school fees and food prices have soared through the roof. The sapa is touching everybody. Even if you’re getting ₦1m every month, by the time you buy fuel of ₦500k, you’ll be wondering if you’re living above your means.

You may just faint

It’s not like you’re throwing money away. You’re literally buying things you need to survive. So what if you finish your money on something “unnecessary” like cake? You’ll need something to replenish your energy after thinking about how messy Nigeria has gotten.

It’s not you, it’s Nigeria

At the end of the day, it’s just Nigeria. You’re doing amazing, sweetie.

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NEXT READ: School Might Be a Scam, but Not if You’re Nigerian
Ever since CBN governor, Godwin Emefiele, introduced the naira redesign policy in November 2022, it has brought nothing but chaos.

From a naira scarcity that impoverished millions of Nigerians to protests that led to the loss of lives and property.

The latest failure in the policy to rear its head is an inflation rate of 21.91%, which is the highest rate Nigeria has experienced in 18 years.

This comes off as strange however because there hasn’t been any money in circulation in the last two months. Isn’t there supposed to be a reduction in inflation when there’s hardly any cash in circulation?

RECOMMENDED: Why Are The New Naira Banknotes So Scarce?

How bad was the inflation and what is the government’s response to this? Let’s dig in:

The Inflation

In February, inflation was mostly caused by a rise in the prices of food, as it rose to 24.35 per cent year-on-year.

Food was more expensive in Kwara as food inflation hit 29.51 per cent, Imo (27.47 per cent), and Lagos (27.42 per cent).

It was lowest in Sokoto (18.54 per cent), Jigawa (19.67 per cent), and Yobe (21.89 per cent).

It was also disclosed that increase in the price of bread, cereal, rent, potatoes, yam, tubers, vegetables, and meat drove inflation up in February.

What was the CBN’s response?

It was one of defence. Emefiele claimed that the recent monetary policy decisions are working. According to him, “We have started to see inflation trending downwards and exchange rates relatively stable.”

Of course, the National Bureau of Statistics has proven that to be false.

But let’s hear from the Research analyst at Atlas Portfolios Limited, Olaide Baanu to tell us about this.

What does the expert say?

According to Baanu “The increase recorded can be attributed to the ongoing cash crunch, as some vendors now require extra charges for payments.”

The food inflation expanded by three base points to 24.35 per cent year-on-year following the cash crunch policy and dry-season effect as Nigerians search for cash to purchase scarce staple foods (like meat, tubers, vegetables, etc.) from farmers.”

What happens next?

Right now, CBN has granted citizens permission to make use of the old naira notes as legal tender, but would this reduce inflation? Would it be higher than before?

Let’s wait and see.

Be sure to get the latest coverage on the 2023 gubernatorial elections right here on Citizen! If you want to be part of the conversation, you can join our community here.
On November 30, 2022, the Federal Government absolved itself of total blame concerning poverty in Nigeria.

The Minister of State for Budget and National Planning, Clement Agba, shifted some of the blame to governors of the 36 states. The minister said the governors should stop spending borrowed money on unnecessary projects and spend on projects that fulfill the basic needs of the people instead.

Agba said, “We appeal that governors should concentrate on building rural roads so that the farmers can at least get their products to the market.”

But are state governors really to blame? Or is this simply a case of the pot calling the kettle black? Let’s first understand the state of Nigeria’s poverty.

How’s Nigeria’s poverty level looking?

133 million Nigerians have been classified as “multidimensionally poor” by the National Bureau of Statistics (NBS).

In its National Multidimensional Poverty Index report, 63% of Nigerians are poor due to a lack of access to health, education, living standards, employment, and security. This figure even exceeded the World Bank’s estimate of 95.1 million. Remember when our dear president said in 2019 he’d lift 100 million Nigerians out of poverty?

Now that we understand the poverty level, who’s to blame?

Agba has already called out governors, but the Federal Government is in the driving seat of the public policies that determine Nigeria’s poverty level. Here are some examples:

Border closure

In August 2019, Nigeria closed the land borders shared with neighbours like Chad, Cameroon, Benin, and Niger. This closure shut down the movement of goods between the countries and badly affected trading activities.

Buhari said he closed the borders to prevent the smuggling of goods, especially rice, into Nigeria. But a bag of rice that used to sell for ₦23,000 before the closure now sells for as high as ₦43,000. The border closure clearly just caused more suffering for Nigerians.

High cost of governance

One thing that should be seriously considered is the ridiculously high paychecks of politicians in the executive arm of government.

Why should there be hardship allowance, entertainment allowance, and even wardrobe allowance for people whose salaries already run into millions of naira? No wonder Nigerian lawmakers have been known to be one of the highest-paid in the world.

The Monetary Policy Rate (MPR)

The MPR is one of the measures the Central Bank of Nigeria (CBN) uses to stabilise prices in an economy. It’s the rate the CBN lends to commercial banks, and the commercial banks lend to their customers.

In order to reduce Nigeria’s inflation rate, the the CBN raised the MPR from 11.5% to 13% in May 2022 and 14% in July 2022. The result? The 18.6% inflation rate in June 2022 increased to 21% in October, the highest rate in 17 years. And what happens when you don’t have the money to buy essential goods? Poverty.

In the end, what Nigerians care about is that all levels of government coordinate their efforts and seriously start pulling Nigerians out of poverty.
The man whom we all love to hate, Godwin “Meffy” Emefiele, can’t stay out of news headlines. Between his announcement that our big boy naira notes will get a facelift and the actual reveal which turned out to be not what we ordered, the interest rate also rose from 15.5% to 16.5%.

Without mincing words, that’s not great news.

What’s the interest rate and how does it work?

You know how people say, “Time is money”? The idea behind that saying is the value of money you hold today is different from the one you hold tomorrow.

To illustrate this, think of 10 or so years ago when ₦‎100 could buy you enough chow to fill your belly. To get that same quantity of food today, you’d have to spend at least ₦‎500. The quantity of food is constant, but the value of money has depreciated over time because of inflation.

Inflation is when there’s a rise in prices which can be translated as the decline of purchasing power over time because your pocket can’t catch up.

To account for this inflation, people who lend money like to charge what’s known as interest. And the biggest lenders in any economy are the banks. The grandfather of all commercial banks in Nigeria is the Central Bank of Nigeria (CBN) and it’s the one that determines the interest rate. That’s where this guy comes in.

ALSO READ: Meffy Has Launched New Naira Banknotes and We Have Questions

The interest rate is the amount banks charge borrowers and is a percentage of the amount loaned. Using Nigeria’s example, with the interest rate at 16.5%, it means anyone who borrows ₦1 million from the bank will have to pay back the original ₦1 million loan plus ₦‎165,000 as interest at the end of the year. That means the cost of borrowing is quite high. But that’s not just what’s messed up about this.

Nigeria’s inflation rate rose to 21.09% in October 2022. This means even at the high cost of borrowing, anyone lending money will still be doing it at a loss because the inflation rate exceeds the interest rate.

Wow. But why’s the CBN raising the interest rate?

That’s a good question and the answer may surprise you. The reason the CBN is raising the interest rate is to…fight inflation. In fact, this is the fourth time in a row it has raised the interest rate, yet inflation is still doing agidi.

It’s a circular problem. The government wants to mop up excess money in circulation and has been trying various moves. It introduced the Snapchat naira notes and has been raising interest rates while confidence in the naira remains low.

One of the key reasons for the persistent inflation is our foreign exchange (forex) which is highly volatile. We already did a story explaining how the EFCC is going after bureau de change (BDC) operators who the government keeps blaming for causing the naira to depreciate in value.

Another important component of our inflation is food inflation. With the rising cost of obtaining agricultural produce particularly with floods ravaging farmlands, our situation is pretty bad.

How does this affect you?

If you’ve been following so far, you can already see how the interest rate and inflation rate are connected and how it affects the cost of food you get at the market. But it goes even beyond that.

Experts have warned that factories will likely shut down which obviously means more unemployment. There’s also what’s known as nonperforming loans (NPL), or simply bad loans. Imagine borrowing ₦10 billion and having to repay that, along with ₦1.65 billion as interest in an economy where everything is upside down. Most businesses will find it hard to repay and that just keeps domestic debts mounting. Already, the manufacturing sector is indebted to the tune of ₦5.1 trillion to Nigerian banks. So don’t expect inflation to ease off anytime soon.

What can be done?

Fixing this challenge requires attending to the fundamentals which includes the government providing more support for farmers. If they can get special interventions and exceptions from the high interest rates, they can get cheap loans that can help them with farming and producing more crops. This can address food inflation.

The CBN can also restore some confidence in the economy by easing off a bit on the interest rate. It’s clear that the continuous hike is hurting more people than it’s helping. We can only hope that whoever comes in by 2023 has a better handle on this issue.

ALSO READ: Nigeria May Be Moonwalking Into a Debt Trap
Ever since the Central Bank of Nigeria (CBN) announced the redesign of the naira banknotes, the financial economy of Nigeria has been going haywire. The naira continues to tumble, the scarcity of dollars is making waves and even the Minister of Finance has washed her hands from the mess.

To add to all the commotion, some governors are trying to play smart and use civil servants to launder the money. We’re not making up stories and this is coming directly from the chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa.

What we know about this plot is that instead of paying into their workers’ bank accounts, as usual, the governors plan to pay them cash so it would be easier to dispose of stashed old notes. The gang of Money Heist would be so proud.

Who are the governors?

So far, Bawa is only giving us half gist and has refused to mention the names of these governors. But he mentioned that two of them are from the northern region and the third is from the southern region. Considering the fact EFCC can’t prosecute serving governors, we’ll probably never hear the names from him. But we know whose collar to hold whenever they announce they want to pay workers in cash.

But how do the actions of these governors affect citizens?

The exchange rate will get werser

With the rapid and uncontrolled influx of money by these unknown governors, consumption rates are increasing. But the unstable demand will negatively affect bank rates. So if you see ₦‎1000 to a dollar as the exchange rate before 2022 is over, you know who to blame.

Nigeria will start losing its daily ₦‎2k from foreign investors

The price instability caused by black money in the financial system will affect the economy’s credibility in the global community. Rational entrepreneurs will find it inconvenient to invest in the country because they’ll also consider the country’s risk before investing.

And if Nigeria isn’t making money, it’s very unlikely that you’d make money as well. You may as well fix your appointment for a salsa date with sapa.

https://twitter.com/Astronaut_ijebu/status/1480423096934973443?s=20&t=ZYtutc8TNs72sdvq2Jk_3w

Mechanics may never become ballers

With the high rate of inflation, there’ll certainly be a divide between the rich and poor. It’d be harder for those making money in naira to purchase goods as prices would steadily increase while those earning in dollars will keep getting richer. No hope for mechanics.

In the end, what these three governors and others like them should know is that EFCC is watching, and so are Nigerians.
In Buhari’s Nigeria, young people are slowly giving up on the soft life dream. Not only is 33% of the working population unemployed, but even the ones who are employed are fighting sapa.

One of the biggest opps Nigerian youths are battling is inflation which rose to 20.77% in September 2022. It’s the highest inflation rate in 17 years and we fear Buhari just wants to break any record whether good or bad. But the biggest victims of the worrying inflation rate are young Nigerians and their dreams.

We had a conversation with two young Nigerians to understand how they’re surviving the inflation crisis.

“Data and fuel are my weekly money suckers” — Irene

Irene Akinyemi is a 23-year student and community builder. And, of course, data is necessary for her work – one thing that is hardly ever available or cheap in Nigeria.

ALSO READ: The Naira is Fighting for Its Life. Who Can Save It?

How are you coping with inflation?

Transportation, data and electricity costs are through the roof. The fuel of ₦5,000 which used to be enough for a week in the generator now lasts three days. ₦6,000 for 25GB used to last for a month — and sometimes spill over into the next one — but now finishes after three weeks, or even two.

What adjustments are you forced to make?

I’ve had to reduce the money spent on my necessities and cut down on unnecessary items that I used to buy. Also, before I make a purchase, I go over the things I need to buy to see if it’s really necessary or not.

What’s the biggest thing inflation has deprived you?

Inflation has reduced my fun money or the money that I spend on things that aren’t necessities. For instance, I don’t splurge on eating out as I used to.

A Stears Business report in 2017 estimated that Nigerians spent an average of 7% of the minimum wage of ₦30k on data monthly. But the Alliance for Affordable Internet (A4AI) reported that affordable data should cost no more than 2% of their monthly income. Inflation has grown worse in Nigeria since those reports five years ago, and our second subject is feeling the burn.

“I’m this close to shutting down my business” — Samuel

Samuel* is a chef who owns a restaurant on Lagos Island. He also doubles as a caterer for special occasions and events. But since he started his business, 2022 is the first time he’s regretting his career path.

How are you coping with inflation?

Things hadn’t been the smoothest since I started the restaurant in 2018, but at least one was trying. I could budget for ₦1.3 million as my rent, and buy foodstuff at Mile 12 around ₦300k and ₦400k every month. But with this inflation, it takes the grace of God to run a business.

In a week, I can spend up to ₦400k or even ₦450k per week on foodstuff, and my landlord increased next year’s rent to ₦2 million. I don’t even want to talk about overhead and payment of salaries. Three of my best employees left in August because of the ₦70k salary, but I can’t steal to pay these guys. My turnover since September has been ₦50k or less.

It’s becoming a huge issue for me to run this business and I’m this close to shutting everything down because of inflation. I might as well focus on getting referrals for special occasions.

What’s the biggest thing inflation has deprived you?

I’ve always wanted to be like Chef Stone and have my very own five-star restaurant, get global recognition, and even start my own catering school. But all of that may be on pause until we get a new era of government. Hopefully, things will pick up soon.

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