HeadlineYuletide Dilemma As Nigerians End 2022 In Agony

Yuletide Dilemma As Nigerians End 2022 In Agony

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It was no comforting news to many discerning Nigerians who heard the highlights of the World Banks’ development update on their beloved country last week.

Five million Nigerians, according to the bank, were added to the ever-rising population of poor Nigerians in 2021 and in 2022. The figure rose to eight million with a likely projection of 12 million in 2023 unless the government carried out some urgent remedial policies: immediate removal of petrol subsidy, social protection programmes for the poor and vulnerable, unified exchange rate and fiscal prudence.

Coming at a time Nigerians are witnessing what can be considered the bleakest yuletide this year, 2022, the update has no doubt hit the bullseye.

The World Bank emphasised that Nigeria is in a worsening situation, with economic performance becoming weaker as inflation persists.

The high cost of food which is exacerbated by insecurity is, perhaps, the greatest existential threat to Nigerians at the moment.

Many households cannot feed themselves; the cost of basic food items such as yam, garri, maize, rice, beans, plantain and ingredients have skyrocketed.

Today, no aspect of life is spared – from worsening insecurity to unbearable cost of living.

Inflation rate quickened for the 10th straight month to a new 17-year high of 21.47 percent in November 2022 – driven majorly by food and petrol/diesel inflation. This has pushed the cost of goods and services beyond the reach of the ordinary citizen with a lean income as Nigeria maintains the infamous title of ‘World Poverty Capital’ since 2016.

Last month (November), the National Bureau of Statistics, NBS, reported that 133 million Nigerians, representing 63 percent of population, are affected by multi-dimensional poverty, not necessarily because of disposable income but development factor.

Making a general assessment of the situation, Isaac Munoye, a development economist told THEWILL: “Food is the basic necessity of man before shelter and clothing. The high cost of feeding has put many lives on the line. It affects productivity because a hungry man cannot farm, school, produce, think, acquire skill or add value to life.”

Munonye observed that many homes are in penury as inflation has squeezed their finances with their income sources eroded.

For the president of the Nigeria Labour Congress, NLC, Ayuba Wabba, Nigerians are currently going through “dark times.”

In a Christmas message issued at the weekend, Wabba said; “Many Nigerian workers and ordinary people are currently going through the dark tunnel of soaring inflation marked by very steep increases in the prices of essential goods and services. Many Nigerian families are going through the dark tunnel of general apprehension about their security and personal safety as criminals and terrorists hold sway in many parts of the country looting, raping, kidnapping, and killing.

“Many Nigerians who would be traveling this festive season would be going through the dark tunnel of bruised, broken and battered infrastructure especially roads.

“While the light of Christmas would be celebrated across many cities, towns and villages around the world with bright illumination which are by-products of stability in public electricity supply, many Nigerians would be battling with queuing for hours to get petrol to power their generators.”

SOURCE OF THE PROBLEM

COVID-19, regulatory pressures, difficult operating environment, foreign exchange volatility, high cost of diesel account as the major factors for many, especially the micro, small and medium enterprises (MSMEs).

Even agriculture, which has played the role of shock-absorber in Nigeria’s troubled economic landscape, is equally challenged.

The National Bureau of Statistics( NBS) Gross Domestic Product (GDP) reports reveal that agriculture has been on the decline due to low output occasioned by insecurity.

Many farmers no longer produce food because bandits now occupy their farmlands and force them to pay taxes to plant or harvest their crops.

This has pushed food inflation to an all-time high of 23.34 percent as of November 2022, according to the NBS, with unemployment presently at 33 per cent .

Access to credit facilities is becoming unfeasible, especially as the Central Bank of Nigeria (CBN) continues to raise the monetary policy rate (MPR), the benchmark interest rate, currently at 16.5 per cent. Cash Reserve Ratio (CRR) has climbed to 32.5 per cent.

The CRR is the share of a bank’s total customer deposit that must be kept with the CBN (‘quarantined’) in the form of liquid cash and not accessible for lending.

This has impacted negatively on MSMEs resulting in a cut in operations or outright shutdown.

According to the NBS and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), 1.9 million MSMEs were forced out of Nigeria’s business landscape in three years (2018-2020).

IMPACT

A major fallout of this challenge is the impact on education and skill acquisition to boost employment and productivity as many parents are unable to pay their children’s school fees.

As it stands, Nigerians are in a yuletide dilemma.

Travelling has become unaffordable, unsafe and unpredictable. The high cost of aviation fuel has pushed flight tickets to a peak never experienced in the nation’s aviation industry with one-way Lagos-Abuja, Lagos-Port Harcourt economy tickets selling for as high as N120,000.

Even so, the Airline Operators of Nigeria (AON) last week threatened to shut down operations should the cost of aviation fuel continue to skyrocket.

In the midst of this milieu of melancholy, Nigeria’s politicians, candidates in the upcoming general election are making assurance while canvassing for votes in the 2023 general elections and making promises of bringing succor to the people in agony.

LAMENTATIONS ACROSS THE STATES

In Akwa Ibom state, the persistent hike in premium motor spirit (petrol) has ignited price increase in every commodity particularly food stuffs.

THEWILL reports that since the return of petro queues in early November, the price of petrol has gone up gradually from N180 per litre to N185 to N200 until it hit N260 as the yuletide approached.

Some commercial bus and tricycle operators said that they now buy at N300 in the ‘black market’ mostly at night.

Weekly hike in transport fares, increase in food prices within Uyo, the state capital and neighbouring foodstuff towns like Oron and Ogoja in Cross Rivers State is impacting badly on the people

Commodities such as rice which is a priced meal at Christmas has gone up to N55,000 per 50kg bag as against N38, 000 shortly before the season. Chicken which sold for between N2,500 and N6,500 in November, depending on the size and age, now goes for as high as N14, 000 to N20, 000.

Civil servants, who spoke with our correspondent in Akpan Andem market, Uyo, lamented the fact that salaries have remained the same while items in the market have increased by over 300 per cent and are still increasing.

A respondent who gave her name as Victoria, said; “My dear sister, I don’t know what to say, I have spent N20,000 in this market but I can’t see what I have bought, the tin tomato I bought last week for N35, 000 is N50, 000 today, vegetables oil has increased, everything but my salary instead of increasing, reduces at times.

“Last year, I was crying that a bag of rice was N25,000 but today, it is N56,000. Please, where are we heading ? It is my children I’m thinking of…”.

Also speaking, the Chairman Board of Trustees in Itam market, Elder Godwin Ebong, blamed the high cost of items in the market on a hike in transportation occasioned by consistent hike in petrol price.

He said it is difficult to control prices of things, especially those coming from outside the state as the traders needed to make a margin for feeding and to restock their wares.

According to him, “My hands are so tight, I can’t even sanction offenders in the market except criminals. You may think we are making so much gain but no; we just have to remain in business because we have hope that things will be better.”

It is not all lamentations, as celebrities and politicians have devised a sure-fire approach to coping with the harsh economy; self-contentment and adaptation. Musician and entertainer, Veno Marioghae Mbanefo, gospel singer Kenny Saint-Best, singer and songwriter Uwale Okoro share their experiences.

According to Marioghae Okoro, “I try to ensure that I concentrate on needs rather than wants. I have become more inventive in the kitchen. When you really don’t have money to make the kind of food you want, it becomes very necessary to be inventive. You have to devise ways to add twist to what you make so that it doesn’t look like a poor person’s meal.

“I also get my mind off what I think I may be lacking by being thankful. Gratitude and thankfulness add flavour to things. There are some people that have not eaten for three days and you are complaining when you have something to eat.”

Saint Best concurs, saying, “it is the grace of God and it has been sufficient for me. I am a Christian, I am a person of faith. I can testify to the goodness of God. God has opened other channels for funds to come in.

“I must say that the harshness is not just peculiar to Nigeria alone, it’s all over the world, it is terrible abroad too but they are coping. There must be a coping mechanism for everyone.”

For Okoro, “I am a Nigerian, so anything that is affecting everyone, affects me as well. I go to the market and buy things, I can say that it is a bit tough but as a Christian, I will not rule out the God factor. All I can say is that it is well. You are ensnared by the words of your mouth; so I have continued to confess positively.”

Onem Miracle Tyna, a politician, tows the same line as Okoro.

“It has not been easy but we thank God for life. I have learnt to adjust my priorities and live within my means. I believe once there is life, there is hope,” said the Bayelsa councilor.

A chieftain of New Nigeria Peoples Party (NNPP), Mr Joseph Agbacha, is in sympathy with his Bayelsa colleague.

He said in spite of the general hardship, his family has managed to live above board. The political climate is very rough but we are able to plan for our children’s school fees among others.”

A cross section of Nigerians in Sokoto State have highlighted how the high cost of foodstuffs, transportation hike, increase in petrol pump price and lack of security have continued to be their biggest challenges in the outgoing 2022.

Speaking with our correspondent in Sokoto state, Mr. Dele Joseph, like John Nwoke, both businessmen, blamed the federal government for not prioritising the people’s needs.

‘We know that a good economy and insecurity cannot thrive side-by-side. This is the area the Federal Government has failed in 2022,, because the masses were totally insecure in all the regions,” Joseph said, adding,

“We have issues that have really affected our well-being like the high cost of transportation, skyrocketing foodstuffs price, insecurity and high cost of petroleum pump price in spite of the subsidy regime.”

A senior lecturer of Business Management at the Usmanu Danfodiyo University, Sokoto, Dr. Yakubu Shaba, however pointed out that the recent pandemic was responsible for the nation’s economy backward.

“There are several indicators that we have to look into if we want to be factual about this. The reality remains that the previous years (2019 and 2020) were not too good for the global economy due to the pandemic,” he explained.

Shaba believes the country is still suffering from the covid-19 aftermath that prompted a global shutdown of all sectors.

“If you can recall, most institutions and industries were closed down and there were no economic activities. As a result of that, prices of commodities went up.”

He also linked the ongoing war between Russia and Ukraine which he said has affected the entire world in terms of energy supply and consumption.

“So, it is a global time and when something is systemic, the risk must affect all sectors of the economy and Nigeria can not be exempted from this problem.

“In Nigeria, people like to complain about government policies and no matter the good intention of the government, Nigerians will still complain about it.

“But the truth remains that most of the government’s policies may not immediately make any impact on the citizenry. It takes time to achieve positive results.

“Then, we also have inflation that could silence any government policy on reviving the economy. Most countries are facing this economy backward and they are even worse than Nigeria, ” he explained.

Given the statistics, he noted that in the first quarter, Nigeria GDP growth rate was at 3.11%, in the second quarter it increased to 3.54% but it later dropped in the third quarter to 2.25%.

“Though, the inflation rate is also increasing as computed by the Central Bank of Nigeria, where we have inflation rising from 20.77% in September.

“Then, in October, it increased to 21.09% in marginal increase. In November, it also increased to 21.79%. This is a global phenomenon that affects every nation’s including the powerful nations,” he submitted.

The don however blamed the growing population that is not commensurate with the country’s economic growth.

“We have a fast growing population while our economic growth is at slow pace.

“We need to check this and also need to be patriotic citizens. Patriotic in the sense that we appreciate our local products and consume them rather than relying upon foreign goods and services. This is the only way our economic growth can complement our well-being,” he said.

In Ogun State, the National Secretary Committee for the Defence of Human Rights (CDHR), Comrade Yinka Folarin, said “there is no festive mood, there is no celebration mood anywhere as far as I am concerned. The situation is critical, I think for me, this is likely going to be the worst Christmas and New year celebration ever.

The National Publicity Secretary of the Labour Party and its former chairman in Ogun State, Comrade(Dr.) Abayomi Arabami, said people should eat whatever they can afford. “The most important thing is that glory be to God we are alive.”

Mr. Jamiu Abiodun, a security man with one of the telecommunication network branches in Ogun State , said, “ As of today, a day before Christmas, I have not received my salary. How can I celebrate the festive period with my family?”

The dire situation is no different in Makurdi, the Benue state capital. An estate manager, Paul Ato, bemoaned the loss of business due to economic downturn “because people hardly come up to inspect units of houses let alone talk of purchasing any. Nothing is moving fine,” he said, adding prayerfully, “We are looking forward to a better year in 2023 with good tidings for the people of the state.”

Apart from decrying the high transport fare and increase in prices of goods, residents of Yenagoa, capital of Bayelsa have a more immediate hardship to overcome.

Speaking to our correspondent, a petty trader Mrs Tina Agboadei, said people are still reeling from the damaging effect of the flooding that ravaged the riverine state recently.

She expressed worry that the Bayelsa State Government seems to be aloof and yet to enforce relevant laws that would put the agencies on their feet and restrain traders and businessmen from taking laws into their hands.

Explaining further, Chief Bidemi Asafa, stated that the state government of the oil-rich state should create an enabling environment that supports creativity and entrepreneurship.

” I can tell you the egg, yams, fish and other items l eat are brought from Delta and Northern states. Why would the prices of goods not increase here?,” he asked.

While praising Governor Duoye Diri’s administration for linking far-flung riverine communities with roads to facilitate trading, he cited the recent protest by Ijaw youths against importation of packaged water and bread into the state from Delta State, as salutary because it prompted bakeries and water factories to spring up in the state.

Chairman of the NLC in Cross River State, Comrade Ben Ukpepi, lamented workers’ plight in the state .

“The consequential adjustment to the minimum wage is yet to be done, coupled with delays in payment of salaries and pension. This means a bleak year for all and sundry,” he said.

Summing up the bleak situation for people in the state, Godwin Otei, Chairman of the Joint Council, said “Cross River is a civil service state and when there is no money in the system, how does the business thrive.? The two of them are tied together.”

Prince Raymond Atoulumah, a leader in Igbo community in the state and businessman, expressed optimism that the upcoming elections in 2023 will usher in good tidings for the country.

The news from Imo State is marked by the worsening insecurity there. Christmas and New year celebration in Imo, can be said to be tearful for those whose loved ones were killed by ‘unknown gunmen’ during the outgoing year 2022.

An Owerri-based public affairs analyst, Comrade Gabriel Nwachukwu, said, “We are afraid; we thought the insecurity in the state was over. People were planning to come back for this year’s Christmas until Simon Ekpa started this rubbish of attacks in the name of sit-at-home order. You saw how the entire Igbo land went up in flames. It was like a war zone. What we thought was over returned with several destructions and killings.”

Emmanuel Nna, from Orlu Local Government Area of Imo State, said, “The fear is much. We are in deep fear. Something must be done to win the people’s confidence.”

Also, a trader at the Owerri main market, Mrs Lucy Iwuajoku, said that this year’s Christmas celebration is nothing to write home about.

“Things are bad these days. Killings, everywhere. Nobody is safe, any longer”, she said.

To raise the dark cloud hanging on the state and put smiles on the face of its citizens through workers patronage, Governor Hope Uzodimma has given a good message of hope by granting the approval to pay the 13th-month salary to civil servants.

*** Written by Amos Esele, Sam Diala, Ivory Ukonu, Shade Wesley- Metibogun, Udeme Utip, Segun Ayinde, Bassey Aniekan, Tunde Omolehin, George Martins, Sampson Uhuegbu and David Owei.

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