For the second time since 2016, Nigeria has gone into an economic recession. This time, the worst the country has seen in three decades. The situation as bad as it is, is further exacerbated by rising inflation and as this year’s Christmas is only days away, costs of food items, household needs and other daily consumables are already far above the purchasing power of many Nigerians. WAP’s staff writer Ebuka Onyekwelu explores the influence of the current Economic Recession in this Year’s Christmas in Southeast Nigeria.
Remarkably, months of lockdown as a result of the COVID-19 pandemic and the economic consequences of the pandemic is something people are struggling to recover from ever before the recession. Then also considering the high levels of demand which by natural economic law drive prices up during yuletide, it is of huge concern to many who wonder if things are going to get better or get worse this season. In any case, good or bad, these are the realities that are shaping this year’s Christmas and for the Southeast, however it turns out will have a particular profound impact, for reasons that are not farfetched.
In Awka the Anambra State capital, a bag of foreign rice now is N37, 000
In Awka the Anambra State capital, a bag of foreign rice now is N37, 000, said Ejiofor who is a businessman that sells household needs and some food items in Awka. “Direct foreign rice is N37, 000, for a bag of 50kg. Local rice depends on the quality, some go for N30, 000, some N25, 000, then very local ones like Abakaliki rice is about N17, 000 or N18, 000”. Speaking on other household needs that have been affected by the recession and inflation, “generally everything is affected, even provisions, groundnut oil, tomatoes, semolina, wine, alcoholic and non-alcoholic”, he said.
For Mr. Ejiofor, since the COVID-19 pandemic, things have never been the same. But for the Christmas, he is optimistic that people’s purchasing power will still rise because, “we usually notice increase in purchase from December 15, mostly from returnees, they are the ones that buy things very well. Most Awka residents don’t have that kind of big purchasing power, so it is from that time we know if it is good or bad”, Ejiofor said. However, the difficulty now is that recession and inflation is a national problem and with a worldwide economic hitch occasioned by the pandemic, we do not know how exactly Ejiofor’s optimism will pan out.
For Ngozi, businesswoman who is in the food industry based in Nnewi an economic and industrial hub in Southeast Nigeria, “Prices now are terrifying. Three months ago was far better than it is now. Stock fish that was sold at N200 three months ago is now sold at N350. Then around March, I bought rice at N14, 500, now that same rice is N28, 000, the rice is local but it has foreign standard. Main foreign rice is from N32, 000, though there is one that is N30, 000”. On other food items, Mrs. Ngozi said that “everything now is very expensive”. “Onions is very scarce and very expensive. Oil for instance, a groundnut oil I bought for N3,300 two months ago, is now N4, 500. A bottle of palm oil is now N600. Two months ago, a gallon of palm oil was N9,000, but now, it is N19, 000. Sachet tomatoes that were sold at N40 or N50 for one, now it is sold at N150”. For Madam Ngozi, these will have profound impact on this year’s Christmas celebration because, “you have to first eat before you celebrate. Also this COVID-19 pandemic was a major setback for business, so it’s a problem”, she concluded.
From Ariaria to New Market, traders are worried about the slow pace at which people purchase.
In Aba, a major business and commercial city in the Southeast, the situation is not much different. From Ariaria to New Market, traders are worried about the slow pace at which people purchase. Aba is reputed for all kinds of fabrics such that people come from as far as neighboring African countries to buy fabrics in Aba. Clothes made in Aba are of great quality depending on the purchasing power of the buyer. The shoes market is significantly booming as well. Ndukwe is a designer that runs the clothing line Richoko, which specializes in making suites and native wears in Aba, with over ten employees in his company. “The economic recession is affecting everything. Though currently, we have not increased our prices, still people are complaining. Our production has also dropped. Seriously, before now, we used to be very busy but not this year because of the economic condition of our prospective clients. So definitely, this year’s Christmas celebration will be affected”, Mr. Ndukwe averred.
Chijioke is a fashion designer based in Aba, he is the owner of Clothe Planet. For him, “Things are not the way it used to be. We do get materials from importers, we know how much we used to buy materials from importers before but now, things have changed and the customers, most don’t understand. They don’t really see it that way. They still want us to charge them the way we used to charge them before, so it’s a problem”, he said. Speaking on the impact it will have on this year’s Christmas, “Its really going to affect people, everybody, because everybody is complaining about it, especially people from Southeast because most of us are Christians”. Speaking further on the rise of prices above purchasing power of most Nigerians, “Right now, I am in Abuja. A bag of rice in Abuja is N32, 000 or N33, 000 for 50kg foreign rice. But in Aba, 50kg foreign rice is about N38, 000 or N40, 000, depending on the quality. Even transport, I paid about N9, 000 from Owerri to Abuja less than a week ago, now I am about going back and the fare is about N15, 000, so it is not easy at all, Chijioke said.
Towards festive seasons like this, Onitsha in Anambra State, a commercial nerve centre not just in the Southeast but throughout Nigeria and beyond, usually experience massive human and vehicular traffic. People travel from all over the place to buy things from Onitsha main market where nearly all household needs can be found, or the Ochanja market or the Ogabru markets nearby, for food items. Onitsha has large markets for almost everything one may need to buy. But this year, so far, it is different, quipped Grace, a teacher and businesswoman, whose husband is also a businessman based in Onitsha. “Everything is just too expensive. Clothes are very expensive. Clothes that was sold at N1, 500 is now N2, 500. Clothes that used to go for N3, 000 is now from N5, 000. Sachet tomatoes that were sold at N50, is now N150. Local rice that is well parboiled and packaged to meet some foreign standards is sold at N28, 000.
Phone snatching is now a daily occurrence in Onitsha.
It is very difficult to find a bag of 50kg of rice that is less than N20, 000”. Commenting on the impact these may have on Christmas celebration this year, Mrs. Grace observed that the impact will be deep and that it will even increase insecurity and robbery, as being witnessed in Onitsha already. “This will increase stealing. Phone snatching is now a daily occurrence in Onitsha. People are now careful about going out in the evening. Some thieves even now invade people’s homes and steal their belongings”, she said.
Chuks is a resident of Owerri and a senior management staff of one of the major makers of snack and other household needs in Nigeria and beyond. According to him, “I don’t think there is any sector that this recession would not affect. In our company, the prices of our raw materials have gone up very high. Some have doubled and all these things have an impact. And when you continue to sale these snack for N50, you know that you are already running a risk of losing money. Then, it is virtually impossible for you to say you want to sale at N70, it will backfire. At some point, the cost of these productions will be too high that companies most likely will no longer be able to bear it and with that, there will be more dare consequences”. Speaking on the cost of food items in Owerri, Chuks noted that he noticed “about 20% to 30% increase in prices in Owerri”. “Super pack indomie was about N100 before, but now, it is N130.
The way I am seeing it considering that we are going into Christmas period which even without recession or inflation, prices are high; so I imagine that there is still going to be more increase. This is unfortunately, something people have to prepare for. Both in Owerri and Portharcourt, sachet tomatoes that were sold at N50 are now sold at N150”. However, on the impact it may have on Christmas, Chuks thinks Southeasterners will not let the prices affect the celebration. “It might not have much effect because, even if that tomatoes sales for N250 tomorrow, Igbos will still buy it. In reality, people see recession as something we hear in the news. But when they go to market, they simply adjust their budget and still buy. But if there is anything that will affect the celebration, then, we should also be looking at the COVID-19 impact. So let us say the accumulated effect of COVID-19, EndSars, recession and the Nigeria festive season hike in prices. In the UK, while I was there, during festive seasons you get discounts of as much as 40% for the same quality of product, but in Nigeria, the prices are increased, so people are already used to it”, Chuks said.
In Enugu, gallon of palm oil before was like N8, 000 but now, it is N16, 000.
In Enugu state, the economic situation is much the same as in other parts of Southeast. “Food items are high. Like, very Costly, some double”, said Florence, an administrator based in Enugu. “Gallon of palm oil before was like N8, 000 but now, it is N16, 000. There is a tin used to measure rice, that tin of local rice before was N3,000 but now, it is N9, 000. Crayfish is on the high side, Onions a bag before was N18, 000 maximum but now it is N40, 000. Groundnut oil, salt, the small sachet was N60, now it is N100”. For her, these will have serious impact on this year’s Christmas celebration.
Speaking about medical services, a syringe that costs N20 before is now N60
“The price of food and price of medical attention is something that is inevitable”, said Dr. Chris, a medical doctor that shuttles between Ebonyi state and Anambra state. In Ebonyi, “a painter (custard container) of garri costs N1, 000 and people are buying it. Then the price of rice in Ebonyi is coming down now because they are harvesting, it is this period that they harvest rice, I heard they are exporting rice from Ebonyi to Northern Nigeria, so maybe that’s why the cost has not come down very well”. Speaking about medical services, “a syringe that costs N20 before is now N60 and this is like the cheapest aspect of medical treatment, so it’s really not just easy”, Dr. Chris said.
Clearly, the year 2020 Christmas celebration might be something that has not been experienced before in the Southeast, although it remains the be seen just exactly how it is going to turn out. A major takeaway however, is that food items are going far above the purchasing power of most Nigerians and the increasing insecurity in the North which has prevented farmers from going to farm, is a big issue. Herdsmen invasion of cultivated farmlands and crisis with farmers across the country, especially in agro communities is also a disinvestment to farming and a de-motivation to farmers. A long term solution for the economy to rebound must include security of lives and properties and also remarkable increase in food production. Otherwise, Nigeria risks a speedy voyage into severe food crisis and famine.
He is a Technical Assistant to Governor Willie Obiano’s Special Adviser on Legislative Matters, whoonce was a Special Adviser to a former Deputy Speaker of Anambra State House of Assembly. Ebuka is a second class upper division graduate of Political Science from University of Calabar, Calabar Nigeria and holds a Masters Degree in Political Science with specialization in Government and Development Studies, from Nnamdi Azikiwe University, Awka Nigeria
