Soaring Food Costs, Shrinking Income Redefining Christmas Traditions

Rising food prices are casting a shadow over the festive season in Nigeria, leaving many families unable to afford traditional holiday meals. Festus Akanbi, in this report, say that this inflation threatens to strip the season of its warmth, unity and cherished traditions

Christians will join their counterparts from other parts of the world to celebrate the birth of Jesus Christ on Wednesday, December 25. However, unlike some of what will happen in other jurisdictions, the current economic realities in Nigeria are pointing to a subdued celebration as the rising inflation and the attendant food crisis have put the fate of many Nigerians in jeopardy.  

A THISDAY random market survey last week showed that as the festive season approaches, the streets of Nigeria, usually vibrant with the anticipation of Christmas now resonate with a poignant sense of unease.

For the first time, preparations for the seasons in major markets and public places in Lagos, Portharcourt and other major cities in the southern part of the country are devoid of the melodious Christmas carols which used to usher in Christmas.

This is because the relentless rise in inflation has driven the cost of food and services to staggering heights, casting a shadow over what traditionally has been a time of joy and togetherness. Families that once gathered around tables laden with delicious meals now confront empty plates and tightened budgets, their dreams of shared feasts replaced by the harsh reality of scarcity.

Markets, once bustling with shoppers eager to embrace the spirit of giving, now echo with the sobering realisation that many will have to forgo cherished traditions, struggling to afford the essentials. As the glittering lights begin to adorn homes, the true message of Christmas—hope, love, and celebration—feels increasingly distant, leaving Nigerians to navigate a bittersweet holiday marked more by hardship than by harmony.

Rising Inflation

The truth is that the Nigerian food crisis is worsening and this was confirmed by the latest Consumer Price Index (CPI) report (inflation report) released by the National Bureau of Statistics (NBS) last week, which showed a significant year-on-year rise in the inflation rate, with the November 2024 rate 6.40 percentage points higher than the 28.20 per cent in November 2023.

“In November 2024, the headline inflation rate was 34.60 per cent relative to the October 2024 headline inflation rate of 33.88 per cent. Looking at the movement, the November 2024 headline inflation rate showed an increase of 0.72 percentage points compared to the October 2024 headline inflation rate,” the report said.

“On a year-on-year basis, the headline inflation rate was 6.40 percentage points higher than the rate recorded in November 2023 (28.20 per cent). This shows that the headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023).”

Rising Food Prices

Food inflation has also seen a sharp rise, reaching 39.93 per cent in November 2024, up from 32.84 per cent in the same period last year. Prices for staple foods such as yam, rice, maize, and palm oil have surged, contributing to the increase in food inflation. Other items such as guinea corn, millet, and meat have also seen notable price hikes.

The 12-month average food inflation rate for the period ending November 2024 stands at 38.67 per cent, marking an 11.58 percentage point rise from the previous year’s 27.09 per cent.

The significant increase in food prices is a key driver of the overall inflationary pressures facing the country, highlighting the difficulties in managing food supply chains and meeting domestic demand.

This increase reflects rising costs in other sectors, particularly in transportation, housing, and personal services. The highest increases were recorded in the prices of taxi journeys, bus fares, rents, and personal grooming services.

However, rather than bemoaning the dire situation in the country, experts said the development should rather be a wake-up call to the Central Bank of Nigeria that its current interest rate tightening is not working.

LCCI Raises Alarm

The current management of the apex bank had embarked on rate cutting to reduce excess liquidity from the system, but the Lagos Chamber of Commerce and Industry (LCCI), said such an effort is counterproductive as far as the Nigerian inflationary rate is concerned.

With the spike in food prices and people’s falling purchasing power which is threatening commercial activities in the Yuletide period, the LCCI said Nigerian businesses may likely face greater challenges in the new year, asking them to prepare for “more stress.”

In a statement on Monday, LCCI’s Director-General, Chinyere Almona, said businesses are likely to face higher interest rates when the next Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting is held.

“The persistent rise in the inflation rate, reaching a 28-year record high of 34.60 in November, continues to fuel a tense business environment as elevated prices constrain various business operations,” Almona said.

“The Lagos Chamber of Commerce and Industry (LCCI) is particularly concerned because, with the persistent and unabated rise in inflation, businesses should prepare for more stress from the burden of higher interest rates as we enter the new year.

Beyond the LCCI’s alarm is the crisis being face by income earners in the country. The fact is the current inflationary trend has made nonsense of people’s income because salaries being earned by many people can no longer take care of their needs. This is worsened by the economic strains which negatively affect performance the capacity to increase workers’ income.

As Christmas and New Year festivities approach, prices of food and related items seem to remain beyond the reach of many Nigerians even with various efforts by the government to ameliorate the situation.

Reports from across the country show that the prices of rice, beans, chicken, fish, vegetable oil, clothes and footwear are on the high side.  Market surveys in many parts of the country showed similar trends with families at crossroads over how to handle the surge in food prices at Christmas while some traders fear that the prices of some items may even rise before Christmas. For instance, the price of rice, which is much relished particularly at this time of the year in many homes, keeps fluctuating.

Last week, a 50kg bag of imported rice was sold for between N85,000 and N100,000 at the Kaiyero Market, Otta, Ogun State, which is fast turning into a major market for smuggled rice and vegetable oil. The price notwithstanding, traders do brisk business as retailers and consumers flock to the market from time to time to make purchases.

Reports say that local food items are not cheap either, be it pepper, tomatoes, palm oil, garri, yam, cassava flour or meat. A vegetable oil trader at the Kuto Market, Abeokuta said the price of the item had risen within the last week. “It is not our fault. We sell according to what we buy from distributors,” she was quoted as saying.

A 25kg bag of foreign parboiled rice goes for N45,000 in the open markets and N48,000 in shops, while 100kg of foreign parboiled rice was sold for N105,000 on Saturday. Also, 150kg of local rice remains between N150,000 to N170,000 in local markets.

A 100kg bag of white beans is now sold for between N170,000 and N185,000, depending on the quality. The brown beans are however sold for between N200,000 and N215,000 per bag.

The reality of budgeting for meals that cost over N1,255 per plate is pushing families to rethink traditional methods of cooking, shopping, and sharing meals.

Some parents are now embracing bulk-buying groups, pooling resources with neighbours, and co-workers or returning to backyard farming to offset the high cost of market produce.

Meanwhile, social media has become a hub for meal-planning tips, where Nigerian influencers share affordable recipe hacks for feeding a family on a shoestring budget. It’s not just about surviving, though. Many young Nigerians are finding ways to use food as a form of community-building, with food-sharing groups sprouting up in cities like Lagos and Abuja. These networks are bringing neighbours together to help one another navigate tough times, exchanging everything from plantains to tomatoes.

It is imperative for the government at all levels to urgently implement measures to announce palliatives and give hope to Nigerians in order to help ease the burden on families and restore the joy of Christmas celebrations.